M&c Saatchi Share Discussion Threads

[cousin jack] 20/4/2022 09:05

It’s not been a comfortable few months for ADVT holders and, bar the unlikely chance of a third party bidder for SAA, I cannot see a good outcome for them. If no agreement is reached with SAA then SAA shares fall and ADVT left with a holding below cost plus whatever the negotiation process has cost. If agreement is somehow reached with SAA there is a likelihood of a major dilution through fundraising plus the risk of overpaying ( particularly as there is not so far a clear or compelling case for the proposal).

As an ADVT holder am I being too pessimistic and do others have a more positive take ?

[stemis] 20/4/2022 07:47

250p a share would value the shares that Advt don't hold at £275m. Advt currently have £105m in cash so would need to raise another £170m. Advt's current market cap is £100m. Find it hard to see a cash bid here...

[x54v] 19/4/2022 20:48

Strong potential on multiple fronts.

A short term 30%+ possible surge on an all-cash bid from ADVT (should they raise).

Multiples of current share price over time if the bid succeeds and Vin Murria replicates the success she had with Computer Software Group and Advanced Computer Software.

And plenty of potential upside if the bid should fail and SAA continues to build on its recent momentum:

“The Company's robust financial performance in 2021 and the momentum into the start of 2022, as referenced in the trading update on 21 January 2022, positions the Company strongly for further growth and provides the Independent Directors with increasing confidence in the success of its strategy. As a result, they remain confident in M&C Saatchi's ability to create material shareholder value.”

[kfr20] 19/4/2022 19:46

Potential for pretty decent returns here from current level still exists.

[x54v] 19/4/2022 18:04

Interesting to note that ADVT is below cash and well below NAV now. One possibility for the weakness there is that the ADVT is looking to place to raise funds to make an offer to buy SAA outright.

Given that the SAA board stated previously that the 230p equivalent undervalues the company, I imagine they’ll be looking for something like 250p.

The talks have lasted a long time without breaking down, so you’d think there must be a decent chance that a further proposal which the SAA board is happy with is just around the corner.

[x54v] 06/4/2022 07:21

Looks like SFOR might be interested in SAA according to the Times:

"Inside the crisis at Sir Martin Sorrell's S4 Capital with @annafmenin. Includes that before the recent slump he was circling stricken M&C Saatchi, founded by his old colleagues"

[velvetide] 05/4/2022 07:44

"What the hell have they got to talk about!"

The recent and dismal performance of the AdvancedAdvT share price will probably fill a few minutes, today down c13% and 3rd worst faller on the board

[jans3] 31/3/2022 12:52

'Vin Murria's investment vehicle given another four weeks to 'put up or shut up'
The acquisition vehicle in line to purchase M&C Saatchi has been given a further four weeks to make a takeover bid.

AdvancedAdvT formerly had until 5pm today to put forward a solid offer for the group, having been given an extension by the City Takeover Panel earlier this month and at the beginning of February.'

And so it goes on. What the hell have they got to talk about!

[finkie] 28/3/2022 07:20

Been in a lot of these they never end quickly and are hugely frustrating for smaller share holders. Prepare to lose hair!!!

[x54v] 27/3/2022 22:13

News this week:

“Such announcement must now be made by not later than 5.00 p.m. on 31 March 2022”

Vin reckons she can accelerate growth from the already impressive levels:

“The Independent Directors continue to believe strongly in the future prospects of M&C Saatchi. The Company's robust financial performance in 2021 and the momentum into the start of 2022, as referenced in the trading update on 21 January 2022, positions the Company strongly for further growth and provides the Independent Directors with increasing confidence in the success of its strategy. As a result, they remain confident in M&C Saatchi's ability to create material shareholder value.”

—

All quiet on the western front these past few weeks. Another delay later this week, or finally some resolution?

[qs99] 17/3/2022 08:12

No idea where this one may lead, following with interest in case the bid falls apart, in the meantime have taken a position in smaller compatriot in the sector, TMG as sell off due to Putin's illegal war IMO looks over done

DYOR

[kipper7] 03/3/2022 07:18

Deadline extended until March 31

[x54v] 02/3/2022 16:34

Someone bidding for 90k shares @ 175p in the auction.

[az4hr] 02/3/2022 08:26

if botb is an example the longer it goes the more unlikely it is

[kipper7] 24/2/2022 12:58

difficult to see how this can happen with current market conditions and share price at 162p.

[colinroberts] 22/2/2022 09:50

Surely the longer these takeover talks/discussions/issues drag on, the more likely it is to actually happen, in some shape or form... That's my view.

[x54v] 17/2/2022 16:51

Volume perking up too after 3:40pm with a few larger blocks printing.

Chart starting to look stronger.

[skyship] 17/2/2022 16:23

SAA surprisingly steady versus falling market. 185p as I type. Something going on perhaps...

[kipper7] 15/2/2022 15:35

X54v Bang on correct

[x54v] 15/2/2022 15:33

It would seem that way.

The directors stated that they were against the proposal on the suggested terms. However they also stated that it was in the "best interests of all stakeholders" to continue the discussions.

So clearly as you suggest there is group of shareholders interested in the possibility of VM's strategy, and they hold a sufficiently large percentage of the company to compel the SAA board to further discussions.

[kipper7] 15/2/2022 15:00

They will use the the extension Time to the full before making any announcement I would think. There's clearly a growing group of shareholders who are interested in her taking this on for the medium term good of the company

[x54v] 15/2/2022 14:01

The "constructive discussions" are certainly taking some time.

[kipper7] 04/2/2022 15:39

That is correctIt depends on the cash value of what is effectively a spac

[imastu pidgitaswell] 04/2/2022 12:27

Worth remembering that it is valued at 230p because it includes the value of the acquirer's shares at the price they were suspended at, with only 40p in cash.

It's only a takeover vehicle - and its value may no longer be 98p.

Essentially the transaction is swapping one version of paper (the SAA shares) for another version (the acquirer's), plus 40p.