Paysafe Share Discussion Threads

[lomax99] 10/8/2017 12:54

So unless another bidder emerges, and they struggle to get enough ii's to be comfortable to get >75% at £5.90, then they will be forced to formally propose a higher price, which does have substantive backing, to take to a vote. Let's hope ii's are lukewarm on anything below, at least, £6.75!

[stuart37] 10/8/2017 12:27

I'm 90% that a takeover WILL happen - just the price to be sorted. If Bidco had managed to get irrevocable assurances of pledged stock from other ii's then they would likely be shouting it from the rooftops. I don't hear any shouting right now so have to assume new price being formed if 75% not being reached.

[wolfhound1] 10/8/2017 12:17

The only real hurdle here is the 75% shareholder approval - looks unlikely unless they materially up the offer from 590p IMHO

- the rest are all done deals albeit they will need to jump through the hoops :

* Asian Gateway purchase is funded out of its own EBITDA over 6 years ( probably less) with only $5m down - probably a connected SPV
* CVC as previous owner of Skrill - will have approval from before as fit and proper - and Blackstone are just huge so again no issue there

* Anti- trust - not relevant, this is just a change of ownership nothing more at this stage

[nurdin] 10/8/2017 12:09

Those look quite a few hurdles to jump...slim chance imo

[bolstaf] 10/8/2017 11:59

Not in a position to look up but am do I remember rite that it's a cash acquisition with no share dilution ???

[boadicea] 10/8/2017 11:54

Edison comment (paid for) now out. No opinion given for obvious reasons but this list of required hurdles is interesting in its breadth -

"The proposed deal was conditional on reaching an agreement to sell the Asia Gateway business to a third party at the same time – a buyer, Spectrum Global, has now been disclosed, which will pay up to $308m over six years for the business, which had revenues of $131m and EBITDA of $50m in FY16. This deal is expected to close on the same day as the takeover of Paysafe, and will not happen if the Paysafe deal does not complete. APPROVALS REQUIRED [my caps] for the acquisition of Paysafe to close include financial services authority clearances in the UK, Isle of Man, Switzerland and Mauritius, anti-trust clearance in the EU, US, Canada, China and Turkey and shareholder approval at the court meeting (>75% of shares voted ) and general meeting."

[wolfhound1] 10/8/2017 11:12

Pleasure Rostam - I hadn't seen your q re stop losses - in my opinion avoid on this stock if you can - MM have time and again dropped price on this stock to trigger stop losses only for the stock to bounce back again but too late for those with stop losses that were triggered - they then found they couldn't get back in at the levels they were knocked out at - pi manipulation

[bolstaf] 10/8/2017 11:09

I certainly will not be putting a stop loss on these .We must remember we were all waiting for JL to go out and find something to buy and he's done that and we were all hoping for it too the make this worth £7.00 and with the asian side gone to then make it £8.50 at least That has now been achieved so if there is no takeover it should be onwards and upwards.yes there may be a rerate for a short while but i cant see it lasting long. Lets not forget why we all held these before the bid.The more I think about it the more i want this kicked out. I'm long on these as I hold them in my sipp so want to be around for the £15 its going to be worth but even if your a short term buyer this has huge potential

[rostam60] 10/8/2017 10:54

Thanks wolfhound for your usual informative and positive outlook.

[wolfhound1] 10/8/2017 10:26

Just MM picking up a few extra quid as previously noted by one of posters on BB.

The discount to bidco will all change very quickly when a new bidder appears, that may take a few weeks.

a) Ignoring JL &CFO - bidco only has a wishy washy letter from OM and Threadneedle covering 14% of shares - they have not won over other ii's - right now I would say they are looking at a revised higher offer to try to get more on Board - many ii's will be aware of Barclays 700p target share price

b) a new bidder is likely to let bidco do all the running in terms of finding a level where more ii's will express support - once it gets closer to 50% support on a higher offer I would suspect new bidder to trump bidco

c) what follows will hopefully be a bidding war

With US deal and knowledge that Asia can be divested for a known amount leading to a re-rating then share price would probably exceed the 590p bid - see Barclays 700p

[rostam60] 10/8/2017 10:20

I also think that the share price includes the risk of the bid failing. Although I topped up by a small amount today, I am minded of a short term decline in share price
Can any holder advise where the stop loss should be?

[malcolmmm] 10/8/2017 09:56

Perhaps the share price is reflecting the uncertainty that the bid will fail and the price will fall initially

[libertine] 10/8/2017 09:33

At the current price, even if the deal goes through, you make a profit on any purchase because with no Government stamp duty to pay, you only need to cover your broker fee for the purchase

[bolstaf] 10/8/2017 09:07

wise move IMO nurdin I'm already so overexposed here but if I can get more at or under 585 I'm in for more. To be honest I'm surprised we haven't seen more doing the same . whats to lose ???

[nurdin] 10/8/2017 08:23

Have bought back a small few of what I sold at £6...safe money I feel with potential for a major upside..With markets looking wobbly PAYS provides a safe haven imo

[bolstaf] 10/8/2017 08:17

£5.90 ????? thieving gits!!!!!JL you should be ashamed of yourself

[malcolmmm] 10/8/2017 08:11

The Naked Trader thinks that SafeCharge is a likely contender for a bid

[bolstaf] 10/8/2017 08:02

Thanks lomax.now i want Wolfhounds £10 to £12 again

[lomax99] 10/8/2017 07:49

FT: Explosion in digital purchases fires up sleepy payments industry

Payments processing becomes hot sector as digital transactions soar

4 hours ago
by: Emma Dunkley

Payments processing has long been considered an unfashionable operation that quietly ticks over in the depths of banks’ back offices.But it is now emerging as a hot sector, as companies rush to take advantage of the huge growth potential stemming from the global shift towards digital and mobile transactions.Vantiv, the largest processor in the US, led the dash to capitalise on the growing trend when it made a firm £9.3bn takeover offer for UK rival Worldpay on Wednesday, fending off competition from JPMorgan Chase in the early stages.The rival approach by the US’s largest Wall Street bank by assets highlights the strategic importance of the payments processing business to incumbents and new entrants, both vying for a dominant share of future revenue. Consultants at McKinsey forecast global payments revenues will grow from $1.8tn in 2014 to $2.2tn in 2020. Philip Jansen and Charles Drucker, who will be co-chief executives of the combined Worldpay-Vantiv business, say the merger is aimed at creating a processing behemoth to exploit the burgeoning e-commerce market, as more payments are made online and via mobile phone. Figures from Capgemini’s world payments report show that the number of global non-cash transactions made in 2015 jumped 11.2 per cent to 433bn.Experts warn that competition is becoming fierce — from traditional banks as well as smaller fintech groups such as Stripe — and companies with scale are most likely to succeed. Last week, the board of Paysafe, the UK digital payments specialist, recommended a £3bn bid by CVC Capital Partners and Blackstone, as more private equity firms swoop into the sector.The Vantiv deal turns the tables on Worldpay, which was last year poised to bid for a large US rival. The UK’s Brexit vote caused sterling to weaken, leaving Worldpay, whose revenues have risen by more than 50 per cent since it was sold for about £2bn by Royal Bank of Scotland in 2010, as more of a target than an acquirer.Mr Drucker, currently president and chief executive of Vantiv, says the deal will “give us unparalleled scale” and “positions us to be the disrupter in the market”. The combined company, which will be called Worldpay, will be the largest payments processor by number of transactions globally.

“Consolidation is happening in our industry,” adds Mr Drucker. “You’re seeing it accelerate as scale is extremely important .201;. . where the opportunity is going is e-commerce and integrated payments, and that’s where [our] combination makes so much sense.”Ed Meier, a fund manager at Old Mutual Global Investors and a Worldpay investor, says “a big logical outcome” from the Worldpay deal would be that large companies “have a one-stop shop for their main payment provider”.R20;As it creates such a behemoth in the sector, one can only imagine that other larger players that don’t have quite the same product set might have to think more deeply about their competitive positioning,” he adds.Such mergers also enable companies to make significant cost savings. The combined Worldpay group is aiming to save $200m over the next three years, 60 per cent of which will be from removing overlap in their respective US divisions, although there will also be job losses, management confirms.RecommendedLex: Worldpay/Vantiv — marry in hasteThe Big Read: Worldpay emerges as a winner in the war on cashBlackstone and CVC seal £3bn Paysafe dealIngenico buys Swedish payments group Bambora for €1.5bnAnalysts say the synergies could be higher. Nomura analysts are forecasting up to $250m of cost savings, by cutting more than $100m from its US technology expenses as Worldpay US moves on to the Vantiv system. Worldpay’s UK business is still being weaned off RBS’s systems, after it was carved out of the state-backed bank as an EU condition of its government bailout.The deal expands Vantiv’s global presence, while buttressing Worldpay’s flagging US division.Analysts at Stifel describe the deal as a strategic “home run”, noting that they “see benefits from potential to expand Vantiv’s impressive success in integrated payments outside the US” and “the potential to improve WorldPay’s current US business.”Bankers, investors and analysts say the payments industry is ripe for consolidation and expect more deals to come, particularly as sterling weakness could expose other potential targets in the UK. “I’m surprised it’s taken this long,” says Mr Meier. “Technology costs are ever increasing upwards and the pace of change has been very fast. Mergers allow one to scale up, because there are large elements of fixed costs that can be amortised over a greater revenue base.”One banker says the Worldpay merger is “really all about recognition of the fact that we’re going through this tremendous evolution of the payments sector and you have to consolidate your position and get inside the network with an infrastructure provider of strength otherwise you’ll be effectively on the sidelines”.

[malcolmmm] 09/8/2017 17:42

Bloomberg reports that speculation mounted this week that the Trump Organization might be interested in operating a Macau casino, after it was recently revealed that representatives of the group filed for trademarks in the world’s largest gambling market. These were for a variety of different uses, from construction and development, restaurants and conference facilities, real estate services and casino operations.

The timing is interesting, as the government licenses for Macau’s six operators to run the current casino oligopoly in Macau are after all set to expire in 2020 through 2022. As the Bloomberg article points out, “in theory” that could open the Macau market to more competition.

Most though expect the Trump Organization is simply protecting the use of his brand rather than seriously contemplating a serious bid to enter the Macau market. Time will tell! The new trademark applications are the same as those previously applied for and granted in Macau back in 2006 and lapsed this year. There are currently no Trump-branded businesses in Macau. And since winning the US presidential election, Mr Trump has turned over control of his business empire to his children and said he will conduct no new foreign deals for his business while in office – still with Mr Trump, never-say-never.

The reality is though that Mr Trump would find entering the Macau market an uphill battle. The authorities that really control the allocation of the licenses in Macau are more interested in working with operators who are willing to play by their rulebook, which in large part is running those casino operations in Macau to keep money flowing into the region, but not too much flowing out. Protectionism is also on the rise in Macau gaming, with restrictions preventing foreigners working on the gaming tables

[stuart37] 09/8/2017 17:20

Ralph - Skrill was formerly Moneybookers who did E-Commerce payment processing but their emphasis was more on international transactions.

[bolstaf] 09/8/2017 16:07

Cant imagine JL is in on that one as nothing in that for him though ????

[ralphmalph] 09/8/2017 15:59

My memory is hazy but from memory Skrill was not a payment processor. The current buying frenzy is for payment processors not digital wallets linked to payment processors.

[wolfhound1] 09/8/2017 15:54

A suspect we will see a rival bid before we get to a vote and then bidco will up the offer - as it stands I don't think 590 will win over enough ii or pi's

I do wonder if bidco is really just a flip front - after all CVC fully exited Skrill and then PAYS in 2015 and Dec 2016 respectively - and now want to buy back in - doesn't make a big pile of sense - unless of course they already have a buyer once they flip out Asian gateway and this is a 6 month attempt at getting a 50% uplift ?

No reason PAYS couldn't flip itself minus Asia in 6 months - afterall the sale of Asia ( bar the $5mn up front) looks to me like it could be financed out of cash eBITDA of $50mn p.a. and growing at 20%+ p.a.

[bolstaf] 09/8/2017 15:45

Everything about this is so wrong that common sense tells me the bid will fail so i guess they will come back with a better offer but to for us to get the real value we need competition. Of course the first offer is not the final offer but given the first offer is so small i hope they walk away showing the white flag. I would be very happy for a rerate down and a new BOD.