Kape Technologies Share Discussion Threads

[elbrus55] 10/3/2023 12:18

They've update the deadline to 2 May, I'm not sure if that is a change to the offer (not seen any RNS) or a correction. Agree that HL communication could confuse although it sounds technically accurate; 'agreed terms' is different to 'recommended'.On an earlier point, it is certainly conceivable in general for large shareholders to accept an offer below the current share price It is often not possible for them to sell large holdings at anywhere near the current share price The market doesn't have that sort of depth/liquidity.For most retail sized holdings you can usually get close to the current share price (less the spread) so it doesn't make any sense to accept the offer at the moment.

[gswredland] 10/3/2023 08:30

Very similar at Jarvis Investment management. Very confusing

[se81] 10/3/2023 08:04

Have to say I'm not keen on the way the offer has been presented at HL

"We write to you as a holder of Kape Technologies Plc shares within your SIPP. The boards of Kape Technologies Plc and Unikmind Holdings Limited have agreed on the terms of a takeover whereby Unikmind Holdings Limited will acquire Kape Technologies Plc."

Agreed on the terms of a takeover? Really?

They then proceed to offer the choice of accepting in USD or GBP or doing nothing (and then caution "Please note that if the offer by Unikmind Holdings Limited is successful the company may gain the ability to delist Kape Technologies Plc or compulsorily acquire your shares")

Is it any wonder the average retail investor hasn't got a clue whats going on?

[death by donut] 09/3/2023 16:58

Still nout in my A J Bell SIPP.DbD :-/

[ali47fish] 09/3/2023 14:05

i am not buyng in the market yet- but hopefully waiting for a better bid

[igoe104] 09/3/2023 13:22

You would have to be a complete muppet to except £2.85, when you can sell into the market 10p more than the offer.

I bet some have excepted it though..🤯

[ali47fish] 09/3/2023 13:14

i have recieeved the offer document from my broker- why does sagi takes unilateral action when th offer was rebuffed by kape- i supose i do nothig and simply wait for news!

[wynmck] 08/3/2023 12:24

rns re unikmind ownership/holding

[elbrus55] 08/3/2023 08:42

The offer is in dollar cash so is worth a bit more when Sterling fall like it has today.

[mister md] 08/3/2023 08:07

Well the shareprice is holding up remarkably strong, despite the current market jitters, so perhaps good news is coming ?

[adamb1978] 08/3/2023 07:59

Hi Elbrus

On 2) even if they didnt take place before the offer was announced, they would have done afterwards...and obviously those shareholders would have been able to trade once the offer was public. For clarity though, those shareholders signing an irrevocable wouldnt have been a trade though - its a commitment to vote in favour. So its clear those 3 main other shareholders dont support the offer and the board update on 28th Feb said that the board have spoken to instis too

1) yes, agreed.

On your final point, agreed its a bit odd. Maybe they thought that somehow the main other 3 shareholders would come around and that would seal it? Maybe they were frustrated with the share price languishing and thought it might flush out another offeror...and that they'd willingly acquire at 288p, but would be as open to selling at say 350p or 400p? Either way, the deal isnt happening absent some revised terms

[crosswires] 08/3/2023 07:13

Well it raised the share price to £2.95 🤷🏼

[elbrus55] 08/3/2023 06:36

2) makes sense. Those other shareholders would then not be able to trade as they would have insider information. It is not clear if those discussions did or did not take place.1) not sure about that, if you read the Interactions between Unikmind and the Kape Board in the RNS of 13th Feb then they only got the additional information between their first offer and improved offer, and it was subject to an NDA and additional conditions.There is still something unexplained - making an offer that is almost certain not to be accepted might be better described as 'pointless' rather than 'opportunistic'? I am sure there is a reason for their actions, just unclear what it is.

[adamb1978] 07/3/2023 08:04

HI Elbrus

On these:
1) I expect that they had decnet access already given the relationship and size of their position. However if not, they could have approached and requested the info without making the offer - they wouldnt have needed to announce an offer first

2) You can speak to c.6 parties ahead of announcing an offer so they could have approached those main 3 shareholders first. Its clear from the silence from those main three and hte lack of any irrevocable/support from them that they're not in agreement

re financing: I'm sure you could raise debt for a much higher offer than this given the predictability of cashflows. I think the offer is entirely opportunistic from Sagi

[elbrus55] 07/3/2023 04:44

Speculative but I can think of two possible motivations for this offer.1) It has given them access to additional information about the company performance. This could be useful if working towards a more serious offer which may need structuring / financing. 2) It might encourage other major shareholders to indicate what offer they would accept. Not entirely sure of the rules, but I doubt you can initiate these discussions in private without a public offer being announced due to disclosure rules. Possible developments after 21 March may be a higher offer of maybe $4 which is accepted or the whole thing may fizzle away. Note that HSBC are providing $267m of financing, so their view may be important as to a higher offer.

[mister md] 06/3/2023 18:02

rivaldo, as thread owner, what do you think happens next, how likely is a further offer higher than 285p ?

[adamb1978] 06/3/2023 16:12

The Offer Document has to be sent. Once an offer is announced, you have to post the offer doc within 28 days - there's no way out (unless you and your advisors want to find themselves in court perhaps...but no advisors would accept that). He didnt have a choice other than to send it

I agree about the numbers though. The offer significantly undervalues the company. The board also agree and main shareholders evidently do too. There's no way this deal is happening at this price

[eagle eye] 06/3/2023 16:07

Why accept 285p when it's 293p bid in the market?
Shareholders here aren't that stupid, or maybe someone thinks we are, otherwise the letter wouldn't have been sent out anyway.

[crosswires] 03/3/2023 18:52

I don’t see any offer of £2.85 being accepted that is quite clear

[adamb1978] 03/3/2023 15:28

Poggio

Not that much selling - according to Sharepad, volume today is 14% of the 6 mo average so far

If the offer isnt raised, there is zero chance it goes through as the other main 3 shareholders arent supporting it. I assume that the company's advisors have been speaking to other parties - lets see what next week brings. I still think its likely that Sagi ups his offer by 10%-20%, and also possible that he's a buyer at 285p but if someone offered him say 385p he might be a seller.

Adam

[poggio] 03/3/2023 15:10

Today there is a lot of selling in the market, when this thread believes a higher offer price is likely. This suggests that investors are getting out now because they will be offered only £2.85p a share in due course. Why do they have this view?

Clearly the market price is currently better than the price offered by Sagi.

[johndoe23] 03/3/2023 12:37

Come on Teddy, up your offer please

[johndoe23] 02/3/2023 08:27

Yes, that's the same slater.

[mister md] 01/3/2023 10:41

Re: Slater, is this the same Slater as at Trifast (TRI) ? They are the biggest shareholder there and there seems to be a lot of holdings increases from institutions and directors alike over recent days.