Paysafe Share Discussion Threads

[libertine] 31/7/2017 15:20

I know you are all excited, but I don`t see the point of all this continual speculation.

Can I just summarise.

On 21st July Paysafe agreed the purchase of Delta Card Services and therefor had to advise the market.

However talks had been ongoing since May with Blackstone and CVC Capital Partners regarding a possible offer for the company. Talks had got the provisional price to 590p with just one large shareholder willing to accept.

I don`t think either Paysafe or the Consortium would have really wanted to make the talks public at this stage, however Paysafe had no choice, as they could not advise the market of one bid and ignore the other. The information was potentially price moving.

Talks between the Consortium, the company, and the large shareholders will now be ongoing to see if any agreement can be reached. It would be pointless for the Consortium to table a bid without the major shareholders behind them. It would also be pointless going hostile.

If a bid ensues we will be told, if the Consortium walks away we will be told.

No counter bid is likely to be considered until the existing talks are finalised and the Consortium actually come up with a figure of their own.

So can`t we just wait for news.

It will save me having to wade through all the daily drivel, just on the off chance that someone has actually got something of interest to add.

[eh9] 31/7/2017 15:15

Most of all it knocks the Asia merchant nonsense squarely on the head so worth opening the books to convince the market

[ralphmalph] 31/7/2017 15:14

three reasons
1) Flush out a bid from a competitor
2) Convince bidco that PAYS is worth more than 5.90 because bidco now knows the true figures so can not argue against them
3) increase the share price, even if bid is not made the market knows pays is worth at least 5.90

[oohrogerpalmer] 31/7/2017 15:08

Whilst we accept that there is no bid of 590p I think the point people are making about a low offer is this part of the RNS -

"Paysafe Board was initially approached by the Consortium in early May 2017. Following the receipt of a number of indicative proposals from the Consortium that were rejected, due diligence access was granted on the basis of a possible offer of 590 pence per share"

It would indicate that other earlier offers were rejected as too low so why hasn't this 590p been rejected ??

I know at some stage due diligence is part of a takeover process but would have thought that the BODs would be saying - Yeh we will grant you DD but your having a laugh if you think 590p is acceptable. Add another £2 on then you can start DD if you want!!!

My fear is that 590p is the starting price, even based on a general 30% increase of that it is still far too low.

[eh9] 31/7/2017 14:34

Agreed. There are analyst targets of 660p, 700p and 850p on Bloomberg

[mip55] 31/7/2017 14:31

As the RNS states this is a "possible offer" which may or may not be translated into a formal bid. Whether the consortium proceed has nothing whatsoever to do with PAYS. If or when a formal bid is made I fully expect the BOD to reject it as derisory and which significantly undervalues the company - unless the bid is way north of 590p!

[eh9] 31/7/2017 14:22

Quite but boards do not allow the public distraction unless the bid intention is real

[mip55] 31/7/2017 14:19

This is an announcement of a possible offer falling under Rule 2.4 of the City Code on Takeovers and Mergers (the "Code"). It does not constitute an announcement of a firm intention to make an offer under Rule 2.7 of the Code. Accordingly, there can be no certainty that an offer will be made.

[eh9] 31/7/2017 14:16

As you can see by all the 8.3s and 8.5a this is part of a very formal process which the board of pays would not have treated as such had there not been a bid and a bid for the Asian merchant on the table subject to due diligence. Several analysts have targets above the bid and the share is now starting to trade above the bid price.

[mip55] 31/7/2017 14:05

Ok just to confirm .....there HASN'T been a bid at 590 for PAYS....in fact the consortium may not even enter a formal bid at all. The more I think about it, the more I feel the silence from the BOD - while I felt initially was disappointing - is simply a strategy to see what interest is generated from others in the market place. Not long to wait.

[oohrogerpalmer] 31/7/2017 13:52

Wolfhound,
Wouldn't argue with any of the figures you state which begs the question ,
the BODs must surely know that so why on earth are the giving airtime to a 590p bid ?
Even a 30% uplift on that would be way short of your figures!!

[kiwidave] 31/7/2017 13:44

JL has a big shareholding here, he certainly wont be watering anything down... think they are just playing the game (which will get the price up to where it should be)

[pshevlin] 31/7/2017 13:38

If they watered it down at all they would have analysts all over it.

[nurdin] 31/7/2017 13:35

eh? I am not talking about profit warning....just massage the numbers to perhaps show an inline performance or even tone down the commentary.

[eh9] 31/7/2017 12:57

They cannot water down the trading update as they are required to have issued a warning if trading was anything but strong as guided for q2

[nurdin] 31/7/2017 12:53

It all depends on what the board thinks of this offer...they have been strangely quiet.They could water down the trading update if they are happy with 590p imo...I hope not.

[eh9] 31/7/2017 12:52

Barclays and investco both have 700p and 660p targets on Bloomberg for paysafe. I cannot see a bid being accepted below 690/£7

[wolfhound1] 31/7/2017 12:48

And we are only 5 trading days away from H1 update - I suspect we will see a more flattering offer shortly

[pshevlin] 31/7/2017 11:19

I'll be interested to see what SCSW ahs to say this weekend. He has a holding and has contacts with the company.

[wolfhound1] 31/7/2017 10:50

Encouraging - I see Investec added to 2.4% holding with a buy of 100k shares at 589p -clearly expect it to much hogher-- approach from a rival bidder perhaps ?

We are back above the 590p bid price !!!

[lomax99] 31/7/2017 10:48

I wonder if a party connected to Blackstone/CVC is lined up to buy the Asian network, nothing would surprise me!

[longwell] 31/7/2017 10:43

until offer is official, we are acquiring another company, results/ update will be in line or upgraded, may be news on Asia gateway sell.
in my view I will hold and see how it develops.5.90 is not an offer I will ever accept but my 40k shares wont make a difference. I agree that 7.00 or above will be more like it if company is not to go alone. If this goes through at 5.90 I will change my whole approach to trading as it stinks of manipulation and quite clearly there is no regulation or concrete authority in the ftse 250.
will see how it plays out.
I wish all holders good luck though, may your dreams come true.

[tevita] 31/7/2017 10:34

ANDY PANDY
you seem to be a KNOW IT ALL
so what is it about YOU and Pinocchio
hmmmmm

[wolfhound1] 31/7/2017 10:30

Uncle Andy - why is it optimistic ?

Fact
1. share price has been held down by spurious shorts for past 12 months
2. Shorts seem to have stayed in long enough to hold down price ahead of bid but not so long as to be caught out by a bid and went to zero before it was publicly announced. That smacks of insider trading - illegal !! Where are SFA in all this ?
3. Our peers are being offered PE30 in a takeover - whereas Pays is being offered PE15
4. ASIAN GATEWAY required to be sold ahead of bid - so reason for discount to peers is also gone.

Lets be v clear our share price has been held down artificially low - we should have been at 700p ahead of the bid - now a 34% premium on top if that is reasonable IMHO