| Share Name |
Share Symbol |
Market |
Type |
Share ISIN |
Share Description |
| Paysafe Gp |
LSE:PAYS |
London |
Ordinary Share |
GB0034264548 |
ORD 0.01P |
| |
Price Change |
% Change |
Share Price |
Shares Traded |
Last Trade |
| |
0.00 |
0.0% |
590.00 |
0.00 |
01:00:00 |
| Bid Price |
Offer Price |
High Price |
Low Price |
Open Price |
|
589.00
|
590.00
|
|
|
|
| Industry Sector |
Turnover (m) |
Profit (m) |
EPS - Basic |
PE Ratio |
Market Cap (m) |
|
General Financial
|
416.30
|
8.01
|
1.36
|
381.0
|
2,881
|
| Last Trade Time |
Trade Type |
Trade Size |
Trade Price |
Currency |
| - |
O |
0 |
590.00 |
GBX |
Real-Time news about Paysafe Gp (London Stock Exchange): 0 recent articles
| Trade Time |
Trade Price |
Trade Size |
Trade Value |
Trade Type |
No Trades
| Date | Subject |
|---|
27/7/2017
13:19 | lomax99: Payments sector ripe for M&A
Payments. It might not sound like the most exciting of industries. But something about the sector has got major businesses – including Vantiv, Blackstone and CVC Capital Partners, among others – hot under the acquisitive collar. As we noted earlier in July, following Vantiv’s successful bid for payments giant Worldpay (WPG), the payments sector is being propelled forward by the global shift towards e-commerce. And, as consumers around the world continue to use cash less frequently, payments processors will only become more integral to everyday life. We appear to be witnessing consolidation across the payments industry – begging the questions, which company will be targeted next as a potential acquisition? And why would one want to acquire such a company? It seems fair to assume that the bidders for both Worldpay and, more recently, Paysafe (PAYS) anticipate further growth for the businesses going forward.
Payment processors have fast become the acquisition du jour. Over the past month, we not only witnessed Vantiv’s bid for Worldpay, but also the purchase of Digital River Payments by Worldline, Ingenico’s takeover of Bambora, and Permira taking a 10 per cent stake in Swedish payments processor Klarna. By the time Paysafe announced it had received a possible takeover offer from a private equity consortium comprising funds managed by Blackstone and CVC, the market had spent several days acclimatising to a developing trend. Shares in Paysafe rose 8 per cent on the news, a reaction subdued perhaps by prior M&A activity in the payment processing sector. The market response was also obscured by Paysafe’s announcement of its own acquisition: Texas-based Merchants’ Choice Payments Solutions (MCPS).
For Canaccord Genuity analyst Daud Khan, the offer for Paysafe is motivated by the heightened acceleration of consolidation in the sector. Mr Khan does not believe this will be the private equity duo’s only acquisition in the payments area – rather, Paysafe may form the cornerstone of consolidation, with two or three more acquisitions to follow.
We appear to be witnessing consolidation across the payments industry – begging the question, which company will be targeted next as a potential acquisition
An important question is whether the terms of the offer will satisfy enough shareholders for the deal to complete. While Old Mutual – Paysafe’s largest shareholder, with a stake of around 10 per cent – has already offered its support for a potential deal, other shareholders may not find the terms so attractive. Each shareholder would receive 590p in cash per share, equating to a premium of 34 per cent to Paysafe’s average share price during the six months to the end of June 2017. However, Paysafe's shares have enjoyed a bullish run in recent months, rising 46 per cent since the start of the year. The shares closed at around 540p on the day prior to the offer announcement – just a 9 per cent discount to the takeover price.
Could Paysafe be better off on its own? The bidding consortium would want to sell off Paysafe’s non-core Asia Gateway business to help finance the acquisition. For Mr Khan, based on a valuation of eight times earnings, Asia Gateway could be worth 55p a share. If Paysafe was to sell this business itself, Mr Khan believes management could drive the group's share price up as high as 650p as a standalone entity, making the 590p offer price look relatively cheap.
There is no certainty about whether a deal will go ahead. However, Paysafe is operating against a dog-eat-dog backdrop of consolidation, demonstrated by its own acquisition of MCPS for $470m (£362m). This should enable it to save money in the US while generating higher returns and enhancing its presence there.
IC View
Based on UBS's forecast EPS of 51¢ for the 12 months to December 2017 prior to the bid, the offer price equates to 15 times forwards earnings. This is well below the value attached to Worldpay (WPG) by its bidders, at 30 times forward earnings. Admittedly, the latter has a market capitalisation more than three times that of Paysafe. However, this is by no means a done deal and other bidders may come forward. Considering this trend towards consolidation, it is worth watching other players in the market – such as PayPoint (PAY) or small-cap Monitise (MONI). For Paysafe, the shares look fairly priced at 583p. Hold.
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24/7/2017
10:42 | snowman19: If the takeover approach was made in May why would PAYS pursue their own takeover strategy? Why would JL bother buying something new if he was willing to sell a long way below his 10 billion target value? Surely he would see the terrible irony of that? There would be no taste in creating unnecessary added value for a potential buyer. If the consortium knew of PAYS plans to buy Merchants it surely makes a nonsense of their offer, the share price could be where it is now on PAYS American acquisition plans alone. Pending results, with the Merchants RNS were likely to push the share price over £6.00 on their own. The 2 Friday RNSs are unlikely to have pleased the consortium as PAYS takeover plans could only make their offer look weaker. Maybe it was the perfect way of showing PAYS negative reaction to £5.90. JL hasn't rejected the offer yet because no formal offer has been made, I think JLs aspiration, ego and obvious acquisition plans for the future suggest that he & the Board are in no mood to roll over. I won't be selling as I believe it's far from a done deal. DYOR & best of luck to all holders.
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21/7/2017
16:33 | lomax99: IC view:
Payment processors are the acquisition du jour, it seems. In the last fortnight, we have witnessed Vantiv’s successful bid for Worldpay, the purchase of Digital River Payments by Worldline, Ingenico’s takeover of Bambora, and Permira taking a 10 per cent stake in Swedish payments processor Klarna. By the time Paysafe (PAYS) announced it had received a possible takeover offer from a private equity consortium, the market had spent several days acclimatising to a developing trend. Shares in Paysafe rose 8 per cent on the news, a reaction subdued perhaps by prior M&A activity in the payment processing sector. The market response was also obscured by Paysafe’s announcement of its own acquisition: Texas-based Merchants’ Choice Payments Solutions (MCPS).
Paysafe’s potential acquirer is a consortium of funds managed by private equity groups Blackstone and CVC Capital Partners. For Canaccord Genuity analyst Daud Khan, the offer is motivated by the heightened acceleration of consolidation in the sector. Mr Khan does not believe this will be the private equity duo’s only acquisition in the payments area – rather, Paysafe may form the cornerstone of consolidation, with two or three more acquisitions to follow.
An important question is whether the terms of the offer will satisfy enough shareholders for the deal to complete. While Old Mutual – Paysafe’s largest shareholder, with a stake of around 10 per cent – has already offered its support for a potential deal, other shareholders may not find the terms so attractive. Each shareholder would receive 590p in cash per share, equating to a premium of 34 per cent to Paysafe’s average share price during the six months to the end of June 2017. However, Paysafe's shares have enjoyed a bullish run in recent months, rising 46 per cent since the start of the year. The shares closed at around 540p on the day prior to the offer announcement - just a 9 per cent discount to the takeover price.
Could Paysafe be better off on its own? The bidding consortium would want to sell off Paysafe’s non-core Asia Gateway business to help finance their acquisition. For Mr Khan, based on a valuation of eight times earnings, Asia Gateway could be worth 55p a share. If Paysafe was to sell this business itself, Mr Khan reckons management could drive the group's share price up as high as 650p as a standalone entity, making the 590p offer price look relatively cheap.
There is no certainty about whether a deal will go ahead. However, Paysafe is operating against a dog-eat-dog backdrop of consolidation, demonstrated by its own acquisition of MCPS for $470m (£362m). This should enable it to save money in the US while generating higher returns and enhancing its presence there.
IC View
Based on forecast EPS of 55¢ for the 12 months to December 2017, the offer price equates to 15 times forwards earnings. This is well below the value attached to Worldpay (WPG) by its bidders, at 30 times forward earnings. Admittedly, the latter has a market capitalisation more than three times that of Paysafe. However, this is by no means a done deal and other bidders may come forward. At 579p, hold.
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04/7/2017
10:04 | ralphmalph: If the price gets leaked or WPG let it be known what the price will be, then that can get factored into PAYS share price as well.
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18/5/2017
18:58 | scothernman: Large sell went through at around 4.20pm for 447k shares at 467.9p when the shares were trading at 479p. Not a great trading sign. Had bought back 1/3 of my previous holding this morning at 464p looking at PAYS share price holding resolutely when market was down 240 points. Broke my rule of waiting to buy till it touched 457p. Sold out at 480p just before close after the unexpected lucky rise in few hours. Hmmm....need to see short disclosure tommorow.
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11/3/2017
16:03 | scothernman: Delighted to see the current run up of PAYS. I am revising the prediction of PAYS hitting 470p from April end to March end 2017 now. The rubber band holding the true value of PAYS share price has snapped and it is going to catapult now.$$$$$$$$$$$$... While at it let us congratulate the employees of PAYS for their stellar work so far and we need to be thankful for their efforts as we make more money as investors.
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08/3/2017
13:17 | kuss1: alexytrader,
Yes, exactly. When you are making significant amounts of cash either you buy another company, give back in dividends, buy your own shares or someone buys you. It's all down to how much cash you have. Which is why pays share price can only go up from here as it makes even more cash this year....
But many over-complicate what is simple ..
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07/3/2017
23:53 | kuss1: China is the biggest market going forward first of all. Second you are making assumptions that the problem with Pays share price is all down to China, it isn't. Third you are focussing on on-line gambling but what about e-commerce. Forth an admission of wanting to withdraw from China would be an admission of irregularity, or at least that's how the market would interpret it. All just a lose, lose scenario.
And also an immediate loss of revenue and profit... ta boot.
Share price a generous £2 the next day imo...
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23/2/2017
13:25 | eh9: Yup sheep herder I think your link hints at why pays share price can go into orbit and all the bits about to be plugged into an integrated offering
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17/12/2016
08:58 | eh9: Undoubtably there are paid users representing shorters on boards just as in all these situations. You need to do your own reseach and risk management (ie dont hold all your eggs in one company in case it does blow up) and then dont look at the boards, only look at press and RNS news.
For what its worth these posts seem to be genuine analyst reseach:
Paysafe’s share price fell by 18% yesterday, having been down 35% or so at one point. The sharesopened up by around 4% today.
We fundamentally disagree with the research report that prompted the sharp share price fall. The
report was issued on Seeking Alpha, which is a crowd sourced content service. As far as I’m aware,
anyone can post research on this site, although I’m not entirely sure if contributors are vetted. The
question is, who are Spotlight Research, the authors of the report? We haven’t come across them
before but we do know that they had a ‘short’ interest in the stock.
So, our take on the situation is that a shorter of a stock has issued a negative note making lots of
speculative and inflated claims designed to get a negative share price reaction. We fundamentally
disagree with their claims. In fact, the content of the report is highly misleading and is factually
inaccurate, in our view. Interestingly, the note was issued at 10am yet the share price didn’t react until
11am after some odd sell orders below the market price cascaded the share price down.
The main issues highlighted are the exposure to China via its payment gateway and the impact of
anti-money laundering (AML) directives. None of this is new news. The company has been very open
with the analyst community about its China exposure and has given analysts detail on the revenue
exposure and profit margin of that part of the business. On our calculations, the overall profit impact if
Paysafe was to withdraw from this business would be in the region of 16% to 18%, not in excess of
50% as the report claims. In China, online gambling is not regulated i.e. it’s a grey market. At any
point, the Chinese authorities could move to ban online gambling. We recognise this and had factored
this risk in to our investment thesis.
As for the impact of AML 5 – the latest AML directive – we and the company welcome it. In fact, the
company hosted a conference call on AML 5 some months ago with the analyst community
specifically to address its implications. The company has been very transparent and open about this.
As it is, it looks like the implementation of AML will be delayed into 2018. We do not agree that AML 5
poses a substantial risk to the business. In fact, we think that strengthening ‘know your customer’
(KYC) requirements will favour Paysafe, which we believe has very robust KYC processes.
As for the aggressive accounting allegations, these are not substantiated in the report. We look at the
cash flow of this business very closely. Cash generation is excellent, almost 100% conversion of profit
into cash. This is not consistent with aggressive accounting practices. Following the Skrill acquisition
in 2015, trailing net debt/EBITDA was around 3x. We expect the company to be almost debt free by
the end of 2017. That’s an impressive achievement.
I spoke too a couple of leading fund managers yesterday who hold this stock in their top 5 holdings within their UK Mid Cap funds to gauge their opinion and outlook following yesterdays news. summary below :
1) The view is that they are significantly overstating the profit contribution from Bet365 and China in particular. We believe it to be 13% of revenues and no more than 20% of profits.
2) The detail on the closure of 1-Pay and the use of an “outsourced service provider” is interesting but itself no material. We do not think this will cause either a liability from the operations in China or a potential impact of the view of the business in Europe or the US as a result of its operations in China.
3) We had always invested discounting the Chinese operations, they were useful in generating cash flow but could not be relied upon in the future. The business trades on 9.6x PE falling to 8.4x . The business will be debt free at the end of 2017, the FCF yield of the business is 12%. Even if we remove the Chinese business the company would trade on 11x or FCF yield of nearly 10%. The global peers trades on 20x PE or an EV/EBITDA of 11x versus an exChina PE of 11x or EV/EBITDA of 7x for Paysafe.
4) We are watching the news flow very closely and will be speaking with the management hopefully tm. We took the opportunity to add to our position significantly below the closing price, we have held the shares for the last 3 years and have done well by understanding the business and holding our nerve through volatility and adding to our position in periods of weakness - which we certainly consider this to be.
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Paysafe share price data is direct from the London Stock Exchange
PLUS1
