M&c Saatchi Share Discussion Threads

[kipper7] 28/4/2022 16:50

What a bore!It's obvious that a bid involving advt paper at 78p is never going to do the job. It's also noticeable that they have now said may 10th and not a month like previouslyWe are in the final stages now

[x54v] 27/4/2022 10:42

Quite possible yes.

Given the amount of time taken though, you'd think that they must be close to a deal. Otherwise why keep the discussions ongoing for such a long time.

[nakedtraitor] 27/4/2022 10:27

Further extension to Put Up or Shut Up deadline tomorrow?

[x54v] 20/4/2022 19:02

Since she has £40 million of her own on the line between the two companies I would imagine that ownership of both holdings in a similar ratio to Vin Murria would be a reasonable strategy.

[cousin jack] 20/4/2022 18:10

Hedging is not straightforward if part of any deal is SAA shareholders accepting some new ADVT shares. Both sets of shareholders ( particularly Vin !) would be impacted by the fall in the ADVT share price.

[x54v] 20/4/2022 12:03

One other point worth making is that if you think a deal is likely and that the ADVT share price will dip in the short term, then you can always hedge with a purchase of SAA shares.

Vin Murria already has this covered personally with holdings in both companies. Any short term drop in her ADVT shares should be covered by the rise in her SAA shares.

In fact she has a larger SAA holding so should gain overall in the short term from a successful bid.

[cousin jack] 20/4/2022 11:49

Interesting thoughts x54v & kfr20 - thanks. Let's hope we hear something concrete one way or the other in a few days time.

[kfr20] 20/4/2022 11:05

I'm sure they can thrash out a deal.

[kfr20] 20/4/2022 11:04

I'd be surprised if these ongoing talks came to nothing.

[x54v] 20/4/2022 10:29

With regards the bid succeeding, you would think that there has got to be a reasonable chance given how long the discussions have taken.

That's over 3 months now. A long time to be continuing talks if there is no hope at all.

Vin Murria must be particularly keen I'd imagine given that she has £40 million of her personal net worth tied up in the two companies and has spent over a year now at ADVT trying to acquire a target.

[x54v] 20/4/2022 10:18

Cousin Jack - a lot depends on your time horizon.

If the bid succeeds, then short term ADVT may go down if it places to raise cash or offers a higher ratio of ADVT shares per SAA shares. But long term there could be substantial gains to be had if Vin Murria does what she has done previously.

If the bid fails, then in the short term ADVT could do anything but has 78.9p in cash plus the value of SAA shares to support its share price. In the long term, once again there could be substantial gains to be had if Vin Murria chooses to continue to pursue her strategy.

[kfr20] 20/4/2022 10:12

As an ADVT holder I am reassured by her proven track record. This may likely take some time to play out. Anyway, my holding is in an isa so I'm quite content to stick with it and I look forward to seeing how the story develops.

[cousin jack] 20/4/2022 10:05

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 08:47

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 21:48

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 20:46

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

[x54v] 19/4/2022 19:04

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 08:21

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 08:44

"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 13:52

'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 08:20

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 23:13

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