M&c Saatchi Share Discussion Threads

[x54v] 08/1/2022 21:46

Also worth remembering that VM is the largest single shareholder at SAA with a personal holding worth £28 million.

So any proposal she makes will affect her SAA shareholding in the same way it does everyone else’s.

[x54v] 08/1/2022 21:30

Agreed. An improved offer is likely in the days ahead. The initial commitment of £24 million at a price of 200p shows the level VM is prepared to deal at.

The move has likely been months in the planning. VM has been on the board since March last year and will have spoken to the largest shareholders to gauge their opinion on her proposal. If she didn't have their approval then she wouldn't have bought nearly 10% of the company at 200p. So even if the SAA directors aren't keen, it's likely that the largest shareholders are.

Whether or not it's a good deal for SAA shareholders will depend on their time horizon and belief in VM and her team's capabilities. Those with a short time horizon might feel frustrated that ADVT isn't bidding 250p and be disappointed with the initial proposed merger terms. But those prepared to take a longer term view and who have done some research into VM's history might entertain the possibility of much stronger growth via optimisation and acquisition over time. VM has certainly shown herself more than capable of doing this in the past having generated 10 baggers with Computer Software Group and Advanced Computer Software.

[kfr20] 08/1/2022 19:56

Improved offer cannot be ruled out here.

[mustau] 08/1/2022 18:57

This is not an offer, it’s a raid by Murria. Holders here are likely to be diluted if it progresses. Cash offer is required not a silly merger/equity change.
Ps: I no longer hold but will buy back if it drops further.

[tromso1] 08/1/2022 08:53

I’d imagine a second higher offer will be made in due course.

It’s frequently the case with a first offer pitched deliberately low with the second higher offer to follow.

[indiestu] 08/1/2022 08:13

The share price is reflecting the value of the current offer. If an improved offer materialises the share price will reflect the value of that new improved offer.The market does not think.

[stemis] 07/1/2022 23:38

Think that’s just the opening shot.

The market would seem to think not...

[x54v] 07/1/2022 19:09

“AdvanceAdvT declined to elaborate on its intentions or plans to Campaign but several industry observers, speaking privately, suggested Murria will have plotted her course carefully.”

[astralvision] 07/1/2022 19:01

Think that's just the opening shot.Vin ain't stupid.

[markie7] 07/1/2022 16:34

indeed SAA are now stuck with a c.25% holder that can't complete on a full take over. Not a good situation. One for PE now I expect.

[qs99] 07/1/2022 16:16

Management then need to find another buyer for Vin's stake, as that opening salvo is really ridiculous given trading etc

[igbertsponk] 07/1/2022 16:04

Suspect Vin and Marwyn want to have the usual Marwyn kicker built in to the company so it's like a VC deal - they take 20% of the total uplift.
This will end either in a takeover or Vin will be off elsewhere.

[markie7] 07/1/2022 15:54

yes, absolutely right RNS. Given announced trading momemtum - might buy back if it drops any more

[qs99] 07/1/2022 15:45

Good rebuttal, so far zero added value other than buying control no? DYOR but market doesn't like it IMO

[astralvision] 07/1/2022 15:22

Vin Murria strikes again!
I’ve known Vin Murria for well over 20 years back to her (and my) days with Elderstreet. Together she took on the small and loss-making Computer Software Group in 2002 and sold it for £500m in 2007. How in 2008 she turned her attention to Advanced Computer Software and grew it from scratch before selling it to Vista in 2015 for £765m. I was involved as a shareholder in all these transactions. I also had a bit of involvement when Vin was rightly awarded an OBE in the 2017 New Year’s Honours . Many call Vin the ‘Queen of UK Tech’ – I would concur!

In the last c5 years Vin has been involved as an NED in several companies – most notably Zoopla, Softcat and Bunzl – as well as backing a variety of smaller private companies eg Celetron .

SaatchiIn May 2020, Vin took a stake in the then much troubled M&C Saatchi. I fully declare that I am a bit of a Murria groupie. Whenever I learn that Vin has bought a stake or become an NED (BTW - always by reading it in the press!) I tend to follow suit. Vin was appointed to the M&C Saatchi board in March 21 a few weeks before she launched her SPAC - AdvancedAdvT

On Wednesday, AdvancedAdvT bought a 9.82% stake in M&C Saatchi and told the board to expect a takeover bid ‘in the near term’. As you might expect, M&C Saatchi shares have surged. Indeed they have now nearly tripled since I bought in 2020… BTW – It has been virtually impossible to buy shares in AdvancedAdvT – which was probably no bad thing as they have slumped on this news!

Since Vin joined the M&C Saatchi board the old board has been replaced and a new CEO appointed. The results have been really encouraging. Knowing Vin, she will use M&C Saatchi as her first block in building a bigger group by a series of acquisitions. Interestingly, M&C Saatchi new clients in the last year have mainly been in the digital tech world – Uber, Google, TikTok and Tinder to name but a few. So I can see the building of a group of digital media assets. A very good place to be methinks!

Those with access to the HotViews archive can read the many posts I have written about Vin. I suspect I will be writing many more in the near-term future!

[zho] 07/1/2022 15:09

The directors of the Company other than Vin Murria (the "Independent Directors") have now received an initial non-binding indication of interest (the "Proposal") from AdvT, whereby AdvT would offer each M&C Saatchi shareholder 1.86 new AdvT ordinary shares for each M&C Saatchi ordinary share. The Proposal is conditional, inter alia, on the recommendation of the Independent Directors.

[its the oxman] 07/1/2022 10:27

Picked up a few , still think deserving of over 200p and more given prospects though who knows what will happen short term.

[kipper7] 07/1/2022 10:26

Downside will be limitedShares traded at these levels a few weeks ago without any bid speculation but purely on positive momentum in the business as reported by the companyUnless you need the money to pay your January tax bill !

[cf456] 07/1/2022 10:22

Nice opportunity to get in on the pullback this morning.

ADVT just bought £24 million worth at £2 and see significant upside from there. The recent trading statements show trading is materially ahead, so there is clear momentum in the business. And the share price has just pulled back from a new yearly high.

Follow the money.

[sundance 13] 07/1/2022 09:56

Disappointing morning, did think about taking profits around the 210 mark yesterday as upside likely to be limited to say 20-30p from there, but decided to hold on mainly as saw no rush & assumed 200p would be the absolute floor for the price going forwards. Wrong!Oh well, bailed earlier instead for a lower price, albeit still a good profit overall.

[indiestu] 07/1/2022 08:51

The weak holders will be shaken out by the close today. I see no negatives to the reverse takeover offer after reading the RNS multiple times. You may of course be disgruntled if you were looking for a quick buck. It will take a while to find proper value if it plays out. Take some time to look over recent results and study industry macro. Have a great weekend all!

[qs99] 07/1/2022 08:09

Put my profits into AIR and ATYM (added to holdings) just for full disclosure on my SAA sale!

Good weekends all and if this sinks back to c.£1.60 I may take a small interest based on underlying trading alone....DYOR

[mustau] 07/1/2022 08:09

Seems like a done deal, I’m out also.

[qs99] 07/1/2022 08:07

won't be a counter bidder with so much held by Vin, why would anyone risk that?

this paper merger is a waste of time IMO and have sold out my reasonably material holding this morning.

Damp squib, with risk DYOR

GLA!