Kape Technologies Share Discussion Threads

[adamb1978] 03/4/2023 21:05

What shareholders can do:
1) vote no against the offer and any de-listing attempt
2) email the NEDs and tell them to move the company to the main market or Nasdaq. Valuation would be far higher; you'd probably see Sagi sell down at that point

[ali47fish] 03/4/2023 19:16

so please can you suggest what shareholders can do including II like slater- i dont like this ide of being at his mercy!

[adamb1978] 03/4/2023 19:05

He'd have to announce if he'd bought more shares

[podgyted] 03/4/2023 18:59

Just a thought:-

Sagi could think he's stronger. He made an offer above market value, increased it and has been rejected. So now he can use the weight of his 50%+ shareholding to take defacto control of Kape (I gave them an out) - the BOD is at his mercy and I foresee the removal of all non-friendly directors being part of his requisition of a GM to attempt to delist the company.

Who knows. Wonder if he's been able to buy more in the market at sub 285.

[ironstorm] 30/3/2023 20:05

I think we should all chill. He is just chancing his arm. Seeing what he can get away with. He won’t be upset by people saying no. He is just reiterating his position. Does not mean it is any stronger.

Stand firm.

[igoe104] 30/3/2023 15:16

Just been intouch with Slater investments, (kape biggest shareholders) and like the rest of us, they are refusing to back down to Sagi tactics.

[wynmck] 30/3/2023 09:50

bully boy tactics from Sagi
and "unless the Unconditional Date is brought forward by Unikmind" probably more pressure to come.
igoe "I'd punch him in the face"- ... Go for it- and give him another from the rest of us

[igoe104] 30/3/2023 09:43

Move to the Nasdaq would be the more sensible move. These would look dirt cheap compared to other Nasdaq listing. So the yanks would be interested..

[adamb1978] 30/3/2023 09:39

He has a lot of his capital tied up here - 15% my by estimates. Feel that there will be some other liquidity event in the next few months. The move to Nasdaq or the main market which they've mentioned before should logically accelerate

[waterloo01] 30/3/2023 09:13

trouble is no one else can bid given his blocking stake. Decided to sell and redeploy capital elsewhere.

[blackfinance] 30/3/2023 08:20

No doubt that is why Sagi is a billionaire. Very sharp practice and threatening to boot. It will be interesting to see how the board/NED's/other significant holders react. I suggest Mr. Sagi as with all of life it you want something then you pay the going rate.

[igoe104] 30/3/2023 07:59

I'd punch him in the face, if I bumped into Sagi. He's a rip off merchant...

[adamb1978] 30/3/2023 07:55

There's 0% chance of him getting to his 70% acceptance condition and, if he doenst hit that, there's also 0% chance that he would get the 75% to delist. No-one would vote for the delisting having not accepted the offer. its illogical

My guess is that he wouldnt go ahead with the requisitiioning of the EGM for the delisting. He doesnt HAVE to go ahead with it and I assume it'll be pulled

This whole saga won't exactly help his reputation

[se81] 30/3/2023 07:42

Sagi getting a little frustrated? "would like to remind" :)

[fozzie] 30/3/2023 07:42

It’s a threatening statement for sure, warning shareholders that he will seek to take the company private no matter what the outcome of the offer. Dreadful behaviour but are we really surprised.

[suetballs] 30/3/2023 07:34

Probably not sailorsam but it’s the shoddy treatment of the minority shareholders that angers me. This is not good business but sharp practice.
Suet

[sailorsam1] 30/3/2023 07:27

Needs 75% of vote to delist; cant see him getting that

[ali47fish] 28/3/2023 09:35

very perceptive adam!

[adamb1978] 28/3/2023 09:07

No problem Ali. I like AIM too, but that view isnt universally shared.

CEO jobs are hard work! If you're worth $5.5bn, probably just easier to lie on your yacht in the med and gently bob up and down whilst someone else does the work for you!!

[ali47fish] 28/3/2023 09:03

very clear explanation nuch appreciated- aim has improved and remains my preferred platform-if sagi can improve the profile of kape why does nt he become a ceo or influnece matters from inside thecompany

[adamb1978] 28/3/2023 08:53

Ali

Simply that a company like KAPE (industry, addressable market, metrics etc) would be more highly rated (trade on higher PE or EBITDA multiples) if it was listed on the main market in London or Nasdaq.

So all I mean is move from AIM to one of those markets - the share price would be higher as investors on those markets would rate it on a higher multiple.

The reason this happens is simply that certain institutional investors are not allowed to invest in AIM companies, and some private investors won't touch AIM because of the various frauds/scandals over the years.

I asked KAPE management 12-18 months ago on an investor call about such a move and they said that its something which the board has discussed or were discussing. I'll ask them again on the next call I join.

THe challenge which KAPE might have is that (i) I'm not sure whether other markets permit a >50% shareholder given the ability for that party to throw their weight around and (ii) other markets require higher free floats, and depending on how you view some of the other large investors in addition to Sagi, KAPE might not reach that level.

Therefore it could be that in order to move market, Sagi might needs to agree to sell down part of his holding - possibly not by much, and actually he'd get the value uplift on most of his holding via a re-rating

Adam

[ali47fish] 28/3/2023 08:39

where to move listing anwhat capture arbitrage- please explain adam

[adamb1978] 28/3/2023 08:21

From a quick google, Sagi is worth around $5.5bn. Sagi's stake in KAPE is worth around $800m, so c.15% of his net worth.

So I can understand why he'd want to own 100% such that he can then access the cashflows from KAPE and have the option to lever it up.

However assuming the offer fails, as seems nailed on, its a big chunk of his worth which is illiquid. I don't think its implausible that he might logically want to start to work constructively with the board to move the listing to another venue and capture the multiple arbitrage

[rivaldo] 28/3/2023 08:19

Great to see such a laughably low level of acceptances.

Sagi's a practical man. And whilst he has a certain "reputation", he nevertheless has many and varied public company interests and won't want to sabotage these. I suspect (and hope!) he'll either increase his offer or let matters lapse and allow KAPE to get on with business as successfully as it has to date.