Paysafe Share Discussion Threads

[callmebanana] 27/7/2017 14:30

£2.85 is fair value, take this wonderful offer! Vote YES!

[wolfhound1] 27/7/2017 14:25

Badly written by IC ( that may that they are being careful not to be seen to give investment advice) but between the lines I am reading :

1. No Downside Risk - 590p contains no bid premium so no downside risk to buying at these levels but significant upside yet to be had
2. 590p is laughable - PE of 15 when market is at PE 30 (Worldpay)
3. CVC & BS don't have ii support - OM letter is not binding - long way to 75% needed - good luck in winning over the required number at this level
4. Buy MPSC and sell Asian Gateway = share price of 650p + 55p proceeds = 705p that firmly puts 590p into perspective
5. PAYS is a strategic acqn - CVC & BS can't just find a replacement they need it to execute their bigger plan - therefore they will pay more.
6. The Shark Pool in payments M&A is teaming with aggressive predators at the moment all looking to do a deal and know PE of 30 is the price of entry !! So another predator will come along - PAYS is in the shop window !!

Let the bidding war commence !!


I bet CVC wishes now they had taken and held onto shares from the merger of Skrill with OPAY - they would be in driving seat - oh well expensive lesson ahead !!

[eh9] 27/7/2017 14:02

Advice to look at monetise is laughable.

[callmebanana] 27/7/2017 14:00

Are you on drugs?

[lomax99] 27/7/2017 13:58

If I did not already have too many of these, I would be topping up!

[callmebanana] 27/7/2017 13:55

We are lucky to be given this opportunity, we should all vote to take the offer.ATBBanana

[callmebanana] 27/7/2017 13:54

22nd October 2015

[eh9] 27/7/2017 13:49

What date is that ic piece?

[deadend] 27/7/2017 13:34

Wonder why they didn't mention only 8% premium to share price recent price,trying to dupe
shareholders,despicable!

[eh9] 27/7/2017 13:31

Suspect ic wrote without crunching the USA numbers as Barclays and Moody's have done

[oohrogerpalmer] 27/7/2017 13:28

I don't understand the BODs implied acceptance of this offer .
Had the offer not been made then the acquisition of MCPS alone would surely had the share price touching the levels we are currently at.
The BODs must have known that , saying the price is a 34% up take on the average price during this period is implying -
1/ - people in the know were buying and pushing the price higher
2/ - The price was increasing on PAYS potential and the BODs are incompetent for accepting such an offer.

I don't believe either of those are true, to me the price increased 34% mainly because of the recovery from the short attack that started late last year.
Had that attack not taken place the average price over the period would have been somewhere in the 480 range .
34% increase on that is around £6.40 a much more realistic starting price.
Old Mutual have given the thumps up to a deal , which i can understand as PAYS will have to do something to compete on a higher level long term , but i hope the deal price they have in mind is a lot higher than the offer banded about at the moment.

[deadend] 27/7/2017 13:23

The company must have been making buy backs whilst aware of offer?
Near 50%,not bad eh! Stinks.

[lomax99] 27/7/2017 13:19

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.

[rostam60] 27/7/2017 12:57

Sp touched 589 just before mid day but quickly reverted to 587.

[pshevlin] 27/7/2017 12:55

I can't see 75% of shareholders going for £5.90.

[eh9] 27/7/2017 12:46

Write that on twitter to the ceo

[gersemi] 27/7/2017 12:45

If the price moves passed 600p I believe you will a strong rally as this will surely indicate that the 590p offer is viewed as unacceptable.

I'm struggling to understand why the management appear willing to sell shareholders down the river suggesting they are happy with a price that quite obviously undervalues the company. ?

It reeks of something and ain't my unwashed underpants hanging from the lamp-shade

[rostam60] 27/7/2017 12:39

Today share price has moved up cautiously.
What I still do not understand is what is holding the price down!
The big players as well as other investors are not ignoring the dynamics.

[ralphmalph] 27/7/2017 12:34

It may be the other large shareholders are in private telling the other large institutional shareholders it is 8.50 or no go.

[ralphmalph] 27/7/2017 12:32

Lets not forget at the moment, technically nobody has made a bid. Black/CVC have said they may bid at 5.90 cash and are testing the waters with the shareholders. Old Mutual have said they are happy the rest have said nothing.