Paysafe Share Discussion Threads

[pshevlin] 21/7/2017 12:55

Yes he's got 9 million shares but if he cashes out what does that leave him with? Just cash. At the moment he has a fast growing company and he is admired for his leadership. If he sells out at a silly price any shareholders in future companies will always view him with suspicion.Hero to Zero.

[verger] 21/7/2017 12:50

I don't see any BOD blessing. What they have done is announce the acquisition on the same day as the possible bid. Although they needed the consortium's approval for this, nevertheless this is what they wanted to do. I read it as a subtle comment from the BOD about the true value and potential of PAYS. It's almost as though they are saying 'Get excited by the possible bid if you wish but we are getting on with the real job'.

[dennislevine] 21/7/2017 12:49

oohroger: Joel has 9.8m shares that he will be able to cash out - that probably focused his mind

[nurdin] 21/7/2017 12:32

Has anyone written to the Company and registered objection to any moves by the company to accept the 590p offer? I have.

[oohrogerpalmer] 21/7/2017 12:31

The way i read the RNS the BOD appear to be giving it their blessing.
I would be extremely disappointed with this offer and they should have rejected it out of hand.
Can only assume they have personal offers to good to be true because this offer to shareholders isn't.

[edjge2] 21/7/2017 12:16

Looks like onwards and upwards, bid seems low but now in the spotlight!

[verger] 21/7/2017 12:13

So, in reality, the market is ignoring the possible bid and is factoring in the acquisition and the sale of the Asia Gateway.

[wolfhound1] 21/7/2017 11:52

exactly verger - why would we accept a bid at roughly 12 times our net profit when we just bought a business at 25 times its net profits - BOD would be hard pressed to justify the consortiums bid on that basis

[ralphmalph] 21/7/2017 11:50

Barclays saying 7.19p then.

[jm2009jm] 21/7/2017 11:49

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Canaccord...similar

"We have argued in previous research that Paysafe should dispose of the Asia Gateway business and this would lead to the company being a more attractive target for consolidation. With this morning's approach it appears that whatever the outcome it is likely the Asia Gateway business will be sold. We believe that as a standalone entity this should provide a re-rating. If we assume that Asia Gateway represents 20% of earnings and the business rerates from 15x earnings to 20x earnings, this provides c. 7% potential upside to the stock from yesterday's close of 542p i.e. c580p excluding the proceeds from Asia Gateway which, based on 8x earnings, could be worth 55p per share."
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[ralphmalph] 21/7/2017 11:49

Also on that theme it maybe Joel trying to shore up his position of the other insti investors were unhappy about the growth rate.

[ralphmalph] 21/7/2017 11:48

It could be the board wanted to reject the offer but the largest shareholder insisted that the Bidco have a look at the books to see what they say.

The main point is that Blackrock and CVC have said we can run this company better than the current management. Not exactly a vote of confidence so management changes could also be on the horizon.

[jm2009jm] 21/7/2017 11:48

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Barclays update

In the last weeks we have experienced rapid consolidation of digital payment assets. Paysafe has always been an undervalued asset, partly as the Asian gateway acted as a poison pill. If this business would be sold we would expect its valuation would anyway normalise, which is not reflected in the PE bid. Wirecard is currently trading at 13x FY19 EBITDA and Bambora was acquired yesterday at 15x FY19 EBITDA including €30m synergies and 21x if excluded. We therefore see the current bid as opportunistic and advise investors to adjust the price for Paysafe for the accretion of the deal (we calculate 12-18%) and valuation paid for other digital assets.

The company is currently trading at 9.2x EV/EBITDA and 13x PE and we reiterate our Overweight and 610p target which doesn’t include the 12-18% accretion for the proposed M&A.
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[verger] 21/7/2017 11:38

The bid offer is distracting us from the real news of an acquisition. Is the buying of MCPS the big and bold move intimated? It seems big, but not bold. It's a shame that the possible bid offer is preventing the company from saying more about this purchase. Any views?

[zcaprd7] 21/7/2017 11:35

Trying to flush out other bidders. Private equity notoriously stingy, and they made a few low ball offers before this. Use of the 6 months average price as a comparator is rubbish as well after the bear attack. They will buy it, sell off the iffy far east bit, load it up with debt, and flip it in 2 years time... If they can make it work at this level, imagine what a trade buyer would be happy to pay!

[peterhiggins] 21/7/2017 11:29

At the moment the price shows the market is not expecting a counter bid. It's a strange rns, it appears the board is saying this is the price they are offering and seeing what the reaction is in the market. I recon in May when they started talking the price was a lot lower and after the recent increase the premium is largely gone, but as there is still a premium they feel they need to share this offer. A counter bid is possible, the weekend press might have more info.

[arcadian] 21/7/2017 11:26

I cannot believe that the BOD will accept this. If Bidco can see value at this price others will see more and our given time BOD are well placed to extract it.

[wolfhound1] 21/7/2017 11:12

RNS - As required by Rule 2.6(a) of the Code, the Consortium is required, by not later than 5.00 p.m. on 18 August 2017...to make a formal binding offer

so if PA get it over the line this weekend - great, if not plenty of time before 18th August !!

Some credit for EH9 please - been calling a bid for a long time and proven correct today - and has had plenty knocking him along the way - pretty unfairly IMHO

Take a bow EH9 - today the courage of your conviction and research has been proven correct - well done sir !!! And from me many thanks for all of your excellent research and postings they have been provided some fantastic insights over the past few years !!!

[mip55] 21/7/2017 10:59

The next 4 weeks Wolfhound? EH9 promised this weekend!!

[qs99] 21/7/2017 10:58

if dd has been made available to Blackrock, then a data room IMO should then be available for others to look at as well...DYOR, but that should allow others to enter the fray, hence no board recommendation and only 10% soft undertakings non-binding from an insti....DYOR and gla

[lomax99] 21/7/2017 10:56

Well Govenor Tom Wolf is recalling PA legislators in for another, unusual, weekend session this weekend, as they struggle to grasp with the size of their budget deficit. Wolf expects another debt downgrade if they cannot close the gap. Come on, you know you can do it.... OLG!

[wolfhound1] 21/7/2017 10:46

This mornings trading volume at less than 1% - so clearly shareholders not being blown away by offer - I suspect we will see more players come out of the long grass now initial terms are announced

they have however done us a favour and officially put PAYS in the shop window - I suspect we will now get taken out at around 800p ...considerably more if PA get the finger out and pass OLG bill in the next 4 weeks !!

[gerdmuller] 21/7/2017 10:45

A lot of those mentioned look like high risk speculative loss making companies. When you are looking to re-invest you should be looking for like for like. Which is a company in a growth market growing profits and throwing off cash. Not some dodgy miner.

[melf] 21/7/2017 10:42

If you have the patience and can get hold of the shares, the real gem is VLE. Do your research on it and you'll see what I mean. GLA.