Plus500 Share Discussion Threads

[gary1966] 18/6/2015 18:14

Looks like they picked up another 600K today.

[elcapital] 18/6/2015 17:49

Pretty much agree stuffee

However I do not expect a higher offer. I believe that it was JP Morgan that sold the stock to ptec, and on that basis they would be reasonably sure that there was not going to be a higher offer.

[stuffee] 18/6/2015 17:46

El Cap

I do not disagree that most probable outcome will be success of the PTEC offer at 400p.

However, as explained in post above, I feel that following the PTEC purchase of 10m shares, there is now only a remote risk of PTEC walking away, a reasonable and logical chance of a small increase in the 400p offer to ensure support of Odey and the possibility of a third party intervening has certainly not been lost.

I was not too impressed by the strength of PTEC price today following its large 10% placing to raise £230m. Its shareholders appear to agree it is acquiring a real quality company, ignoring short term, far too cheaply.

[togglebrush] 18/6/2015 16:29

PTEC are proving they can make a fast ALL CASH deal

[elcapital] 18/6/2015 16:19

They are not going to increase their offer, there is no need to

[jim digriz] 18/6/2015 16:04

Excellent, so Playtech have enough cash now to up their offer to something reasonable...?

[gorilla36] 18/6/2015 16:03

stuffee - Indeed, excellent post!

[togglebrush] 18/6/2015 15:33

PTEC RNS extract re todays placing
'
29,050,000 new ordinary shares at a price of 780 pence per Placing Share, raising gross proceeds of approximately GBP227 million (before expenses).
'
Placing Shares being issued represent approximately 9.9% of the issued ordinary share capital of the Company prior to the Placing.
'
REMINDER
The Acquisition values the entire issued ordinary share capital of Plus500 (the "Plus500 Shares") at approximately GBP459.6 million

[pbutterworth1] 18/6/2015 15:30

Good Post Stuffee

[stuffee] 18/6/2015 14:50

This transaction originally announced as proceeding by way of Israeli merger (seems equivalent to a UK Scheme) whereby 75% voting in favour forces bid on all - I doubt PTEC can vote its new 10% holding at EGM. There seems some doubt as to whether 50% or 75% majority required: certainly under UK, US or most jurisdictions a Court would not grant a merger proceeding if more than 25% object. I guess PTEC will drop Israeli merger route in favour of a tender offer, if it feels Odey will object to the Court and stop everything.

My Google based research suggests under Israeli law 95% acceptances to any tender offer (vs 90% in UK) are required for a bidder to acquire minority compulsorily. Also appears ratio refers to shares offered, suggesting PTEC's 10% will not count towards either numerator or denominator. I have no experience of Israeli law so can't be assured interpretation OK. Don't therefore think this 10% purchase will help PTEC gain 100%, albeit will obviously greatly help it achieve 50%.

Would appreciate any more professional interpretation of Israeli law re both merger route and tender offer;

I assume PTEC bought the 10% as it wished to reduce risk of any new third party bidder and was worried sufficient other shareholder would not accept 400p. This reduces but does not eliminate chance of a new third party bidder. Don't forget Plus management commitment to accept 400p PTEC offer vanishes if any bid at 420p or over announced. Nice insurance of profit on shares if this does happen. PTEC can't have had actual knowledge of any new bidder due to insider trading rules and consequences of Teddy S rejoining his alumni etc.

PTEC will not be able to force acquisition of 100% and so it will have huge nuisance factor of minority shareholders, Odey et al. It won't be able to integrate business efficiently and (assuming Israeli law has similar protection for minorities) will be severely restricted in future action. I had always slight fear that PTEC would walk or threaten to walk if Odey didn't play ball to enable 100% acquisition or it decided potential FCA action more draconian than expected; this risk greatly reduced due to its new £40m investment.

I therefore still feel there's a reasonable chance that Odey and PTEC will come to some compromise at the very last moment to secure its support, of course for a few more shekels all round.

[elcapital] 18/6/2015 11:55

Gary

I do not know for certain re Israel Law. The takeover rules are different there

[gary1966] 18/6/2015 11:47

ELC,

Yes I own the shares in a nominee account but the service doesn't allow me to vote.

Pleased to hear that it will be an automatic no rather than yes vote. Will UK law govern this share given it is an Israeli co?

[elcapital] 18/6/2015 11:19

Gary

Do you own the shares or is it a CFD? If you own the shares outright, you will get the documentation to vote, but a yes vote has to be voted, it wont be accepted by default. If you do not vote, and it goes through, you are a dissenting shareholder and under UK law - unless they get more than ninety percent they cannot force you to accept the offer.

IMO this is a done deal now, playtech will mop up given it is now worthwhile selling in the market even if the offer goes through. Odey have faltered.....again. I hope some of the bulls on here learn the lesson that instis get it wrong too.

[gary1966] 18/6/2015 11:12

If JPM have sold their stake then they will have to notify the market. It will be interesting to see if an RNS is issued over the next 24hrs. It will also be interesting to see if Odey now increase their stake in response to Playtech accumulating. I suspect that it is game over unless a counterbid comes in. My stockbroker doesn't provide as part of its' service the chance for me to vote and so I assume that by default my shares will be counted as in favour of the bid. If others are in the same boat then the remaining 5% that they need could be a lot less in reality.

[elcapital] 18/6/2015 10:49

Wow...i just had a peek at what udik has been posting as I expected it was toward me.

This just shows how stupid this moron is. After the news that they alreadt have enough votes for the bid to go through he still thinks there will be an offer of 5...........absolute pillock, The market price is now telling us this bid will go through at 400.

[elcapital] 18/6/2015 10:47

butters

No one knows the value of PLUS now, we do not know the effect of what has been happening.

[dlku] 18/6/2015 10:42

roll on 500p

[dlku] 18/6/2015 10:41

playtech only needs another 5% for majority

[pbutterworth1] 18/6/2015 10:40

ELC the trouble with your analysis on is that PLUS always was worth a lot more than 400p. Mr Market will intervene and the truth will out - we will see.

ELcapital 18 Jun'15 - 10:20 - 9920 of 9923 0 1

This is over now, with just a slight chance that playtech may pull out. Move on to the next one now I think.

[dlku] 18/6/2015 10:36

tmmalik
18 Jun'15 - 08:14 - 9906 of 9922 0 0

Higher bid from playtec expected today





Hope so, very exciting! Looking for 470p-500p?

[dlku] 18/6/2015 10:35

PLUS- look at the trades today - going through at a 15p premium - someone doesnt pay 15p more for 7m shares unless they know something

[p0rt1] 18/6/2015 10:26

YES! I HAVE A CAPS LOCK KEY!! YOU HAVE TO LISTEN TO ME!!!

[elcapital] 18/6/2015 10:20

This is over now, with just a slight chance that playtech may pull out. Move on to the next one now I think.

I have filtered the morons that were predicting a higher bid. I would hope they have now seen sense, but I doubt it...one a moron....always a moron.

[elcapital] 18/6/2015 10:19

goldie....IG would not be interested in PLUS. Plus is a different kind of business.

[dlku] 18/6/2015 10:17

Breakout on the chart and the numbnut is quiet