Kinovo Share Discussion Threads

[nico115] 05/9/2023 17:09

I think earnings here are going to explode We are on cusp of incredible growth I just can't see the BOD recommending any bid in the 50s or 60s.Retail hold over 45pct of the equity and I've not spoken to one person who would accept below 70p and most want nearer 100p.The BOD ,imho,will only agree a bid below 70p if they are desperate to work for Tim Scott.After his pathetic rns last week criticising the co I just can't see the BOD wanting that .This BOD has delivered ..let's see us remain independent.

[patsc100] 05/9/2023 16:34

Yes, same opinion. 56p is dead now.

Give it one more week and we’ll be at 60p and which idiot would be willing to sell this opportunity at a 10% premium?

[qs99] 05/9/2023 16:09

Someone paid 57p it looks like DYOR< so looks like his attempt at buying on the cheap at 56p is dead. anyone of the same view?

DYOR etc.

[aldriglikvid] 05/9/2023 15:48

In 2021 and 2022 we had Trading Updates in September. Hopefully we get an update any week now.

[qs99] 05/9/2023 12:36

Indeed great effort Mr Slater!

Maybe do an MBO at 75?! DYOR

[dope007] 05/9/2023 12:00

Sending a message back to our would be buyers

[fft] 05/9/2023 11:43

Mr Slater has added just under 40k to his holding, so showing confidence !

[qs99] 04/9/2023 15:56

wow, just seen that. why would you do that?!

[sooty snipes] 04/9/2023 15:48

Blimey someone sold 13,600 shares early doors for 44p. Shafted or what!

[qs99] 04/9/2023 15:19

haha, spot on DYOR2, we need instis and PIs to hold the line as it were with the BoD doing their job properly, especially the NEDs

If he wants it he can pay some more, he has the fire power, and the low "in" price to help him along the way.

I get that taking risk means getting the rewards, but "nicking" a company with a low ball offer is not right and should be and rightly is being resisted.

If he is that good, he can make up any increase in price/payment with "uber businessman" decisions in the future to create value over and above that price/payment!! back himself!

cheers
QS99

[dyor2] 04/9/2023 15:08

QS99, I’m pretty sure that the majority of PIs want to “show the finger”, but I’m less sure about the BoD and (some) of the institutions. Of the 70% of Kino shares not already controlled by Tim Scott, 24% of the company is controlled by the BoD and institutions, and 46% by private investors. That makes the attitude of private investors to this bid fairly pivotal. You already know the view of Nick Slater and myself (taken together we control c.7%), and I believe a number of other significant PI investors feel the same. Tim Scott/Rx3 will have to weigh that up when considering their next move. I note that they haven’t yet withdrawn their bid approach, despite the BoD on Friday indicating that they won’t recommend a 56p bid. That must mean they’re considering a higher offer. They certainly won’t want to pay up too much, but their problem is how to win over the private investors to achieve 100%, because a significant number of us feel quite strongly that this offer substantially undervalues this business.

This situation is unusual in a number of respects, but to me the most significant is that Tim Scott is a very wealthy, highly successful entrepeneur, who knows the business and its prospects intimately - and he wants to buy it with his own (family Trust) money. So it’s not like the usual sort of bid from a private equity outfit or a competitor, where they’re using somebody else’s money. This is a very bright guy, who knows the business very well, and has shown himself to be very shrewd not only in his business career to date, but also in his purchases of Kinovo shares, who now wants to use £35m of his own money to buy 100% of it. I don’t blame him at all, in fact well done Tim for spotting the opportunity. It’s just that if he’s buying, it doesn’t feel like I should be selling!

[qs99] 03/9/2023 12:30

Thanks DYOR2 and I think everyone can make their own views on the timing of that purchase, especially when combined with the veiled threats of legging over PIs if they stay in after a majority purchase.

So IMO I will be holding on in the hope that the BoD and Instis and other PIs stick two fingers up at him until he makes a proper bid at a sensible value, rather than trying to buy this on the massive cheap. DYOR

[nico115] 02/9/2023 23:34

I remember it well Dyor

.

[dyor2] 02/9/2023 12:32

Hi Nick, well the threat is certainly unusual in a public company takeover context, and I’m surprised Zeus (Tim Scott’s financial advisers) allowed it. But it wasn’t in a formal offer document, and was couched in vague enough terms (sort of “nice shareholding you’ve got there, be a shame if something happened to it”), that from a strict legal point of view I think he’ll get away with it. But he’s sailing close to the wind. And it’s not the first time he’s behaved errm….rather unconventionally, is it? I recall back in July last year Tipacs2 paid a 60% premium to the then market price to acquire a further 12% block of shares in the company. An unusual purchase, and three weeks later Kinovo announced the following:

“Dialogue with DCB clients have been positive, outstanding DCB contracts are under control with costs to complete expected to be approximately £4m plus expenses, significantly lower than previous external expectations, and will be fulfilled by our current cash flow.”

This caused the share price to rise sharply, as previous market fears had been that the costs to complete the DCB contracts could be £12m+, and require either a fund raising or even potentially bankrupt the entire company. Look, before Tim Scott’s lawyers descend on me with defamation claims, I’m certainly not alleging here that he traded on inside information. I’m just saying that he’s capable of very ballsy and unconventional moves where he thinks he sees exceptional value. And I think that’s the case now with his attempt to buy the entire company at a knock down price.

[nico115] 02/9/2023 11:13

Great post dyor ,you are the voice of balanced reason and I thank you for that. Can I ask you please :How can it be legal that Tim Scott tells investors that they should sell their stock to him if he makes a bid otherwise they may get shafted as a minority investor ?How can this be allowed ? It's shocking ,we are an Aim company and shareholders should be looked after . David Bullen and the BOD will not have worked so hard for us to get potentially shafted like this .

[nico115] 02/9/2023 09:59

Many retail holders have said they would consider remaining a minority holder and I know this is something TIpacs won't want .He must've been desperate to have gone via a Scheme of Arrangement but Retail hold over 50pct of the shares so he knows it would have been impossible to have garnered 75pct support for his derisory low offer.

[nico115] 02/9/2023 09:55

Problem is he's made a nasty threat so any underhand behaviour and he's likely to end up in court and have a lot of adverse publicity .Is this something a 73 year old man who must be near to retirement wants ?When he told me he holds all his private companies for 20 years I said " do you mind me asking how old you are ""73 " he repliedI said " good luck with that then !! " : )

[patsc100] 02/9/2023 09:30

What kind of options would he have to shaft minority shareholders?

One that comes to my mind would be a capital raise where he buys most of the offered shares whiöe minorities can’t participate equally and would be diluted.

Would that be possible with a 50%+1 share ownership?

Could he eventually give himself a loan and via this way milk the business while minorities won’t see a penny?

[dyor2] 02/9/2023 08:20

Personally, I don’t have any problem with most of what Tim Scott/Rx3 wrote in his RNS. His “assistance221; to Kinovo shareholders in evaluating the company was obviously self serving and misleading, but so what? I doubt it’s changed anybody’s view. It’s part of the normal wrangling around takeovers. The buyer tries to talk down the value of the Company, the owners try to talk it up.

But what raised my eyebrows was the final, rather grubby threat that minority shareholders could be shafted ( or in his words “should be aware of the implications”) if he succeeds in gaining majority control but they remain as shareholders. Really??? Hmm….that sort of not so subtle threat might be common practice in the private company arena, but in the public company arena, though we’re far from angels, we do at least tend to believe in equal and fair treatment for all shareholders, big or small. As, by the way, do the Stock Exchange listing authorities and the Takeover Panel. There are a significant number of ex and current City practitioners on the Kinovo share register, as well as institutional holders, and I suspect that this threat really hasn’t gone down at all well! We’ll see in due course what effect it has on the final outcome, but I certainly don’t think it’s helped his case.

[nico115] 01/9/2023 18:28

Totally false The seller was stuck at 40p and wouldn't sell any lower !!I know as I was one of the buyers at 40pThe Rns from TIpacs was plainly inaccurate and all holders were absolutely shocked by its contents .

[nico115] 01/9/2023 15:37

Btw I've had many retail holders contact me and NOT one out of over 30 I've been contacted by wanted to sell out at 56p.This BOD have managed this company excellently since the DCB mishap and are one of the best BOD on aim ..let's not sell out too cheaply to an opportunist who can see we are valued far too cheaply .Basic maths ..pe of 10 x ebitda of 6m gets you to 60m which is c100pOne can argue Sureserve was taken over on a pe of 13 but let's be conservative Also I think Kinovo will be making profits in excess of 10m in 3 years time .pe of 15 =150p

[nico115] 01/9/2023 15:30

Totally agree Instis ans retail aren't idiots !They can read an rns and understand that the bidder is trying to create uncertainty .Tim admitted we have great management but knows we are trading at a price that's at least 50p below where we will be trading at by end 2024I think many retail holders are looking for prices well in excess of 100 pct above where we are today .Well done the BOD for rejecting this v low derisory offer and listening to its retail shareholders who own a large chunk of kinovo .

[nickcarr1] 01/9/2023 15:22

The article makes some decent analysis... but also seems to completely miss the idea that Tim Scott's RNS was clearly intended to scare out / demotivate share holders and is not his actual thoughts on the company.
As evidenced by the fact that he is trying to buy the entire company despite his list of unignorable negatives!

[nico115] 01/9/2023 15:12

Mark ,there are many retail holders here who think Kinovo is worth at least 100p within a year and these guys have made small fortunes in small cap stocks .I would rather back these guys views than any paid for click articles !!Scott made a tentative approach at 56p as he sees huge growth prospects here as I and many others do as well . He is probably looking at selling the company for nearer 150p/200p in 3 years time .Let's see what happens but it's good to see the BOD not recommend any offer at such a pitiful valuation ..cash generated here is great and a big thumbs up to one of the best managements on Aim.

[sooty snipes] 01/9/2023 14:57

Ha ha ha. Thanks for your reasoned input