Quindell Share Discussion Threads

[foreverfalling] 17/3/2015 12:43

Qpp won't accept less than 640m now that they have put that figure to market. They may be trying to attract other offers. If SG didn't want it they wouldn't have wasted all this time talking. S&G will already know what the pwc report says.

[investordave] 17/3/2015 12:43

All in your opinion of course tp.

[tawnyport] 17/3/2015 12:36

Forever,

S&G hold all the cards here, QPP have none as they were so desparate for quick cash they took £10m to grant exclusivity to S&G.

Given the amount of DD required, S&G are the only game in town! IMO if they are interested in some/all of QLS, to do the right thing by their shareholders:

i) they will not offer pre PwC report; and

ii) if i) is bad (which it will be), they will submit a low ball offer and if not accepted will wait on administration/receivers and cherry pick the carcass off them as the only party that can move quickly.

QPP should have sold NARS earlier instead of taking that exclusivity fee; will cost s/holders dear in lower QLS proceeds in the medium term.

TP

[elcapital] 17/3/2015 12:11

Goofys box of chocolates valuation only includes the wrappers and not what other chocolates are in the box.

[juicin drumroll] 17/3/2015 12:05

For God's Sake Bellend,

Are you ever going to answer me with your list of "mis-leading" "mis-truths"?

[juicin drumroll] 17/3/2015 12:01

Got your cash flow figures handy Goofy?

I haven't seen them trotted out for so long I've forgotten what they say & could use a laugh.

TIA.

[geoffreen] 17/3/2015 11:58

On sum of parts basis, and building in a discount for uncertainty, consider stock to be currently under-priced by about 100p.

[hpcg] 17/3/2015 11:55

Even here we seem to be equating the transactional value of the assets as the ultimately realisable value. S&G can only be buying if they think there is a profit to be made. Same as you or I, we buy a share because we think it is worth more than we are paying for it. So for S&G to apply a purchase price of X they must think they'll get back (X + interest on X) * 1.3 or something like that.

So if there is to be a transaction then either S&G must think the realisable value is greater than what QPP think, or QPP must take a haircut on what it thinks the NPV is.

In itself this is neither a bear nor a bull statement, and the price (if there is a deal) is the price. On the balance of probabilities though QPP are likely to have to sell for lower than the published book value.

[juicin drumroll] 17/3/2015 11:53

Bellend,

I'd be very interested to hear you list the "mis-leading" "mis-truths" & explain why you consider them to be so.

How are you doing on that list?

Clearly you were able to immediately identify these "mis-leading" "mis-truths" you refer to so I'm baffled at the tardiness of your response.

Chop chop.

hTTp://www.fool.com.au/2015/03/17/is-slater-gordon-limited-moving-closer-to-a-giant-uk-acquisition/

Is Slater & Gordon Limited moving closer to a giant UK acquisition?

Australia’s largest listed firm Slater & Gordon Limited (ASX: SGH) is reportedly moving closer to a huge £640 million ($1.2 billion) acquisition of the legal services division of UK AIM-listed professional services group Quindell PLC.

Big numbers

The eye-watering sum of £640 million (plus future payments related to other PI cases) is being touted by none other than Quindell Plc itself in an overnight announcement to the London Stock Exchange, which stated the amount was among a “number of deal structures” being discussed with Slater & Gordon.

This deal structure has also been reported by London’s The Sunday Times Newspaper, which also suggested to expect an announcement over the deal by March 23, when Slater & Gordon’s exclusivity agreement runs out.

Is it the real deal?

Slater & Gordon has yet to make an announcement to the market over any details on the deal other than to confirm it is in negotiations and that a deal may or may not happen. However, given that Quindell itself has released this amount (among other deal structures) to the market some credence has to be given to it.

Although, Slater & Gordon has never hinted at a deal size and given its past track record of acquiring UK law firms on multiples of around 1x annual revenues, the £640 million sum would appear out of kilter. It’s worth noting that recently The Financial Times reported Quindell’s legal services division’s half year revenues at £180 million. That amount doubled would be far short of £640 million, but is still a significant amount for Slater & Gordon to cough up.

Moreover, Quindell has a patchy history having lost around 80% of its market value in the last year after falling victim to one of the most infamous short selling attacks in trading history and losing its CEO amidst an investigation into its accounting practices. Currently audit firm PWC are due to report on the validity of said accounting practices, including accruals and revenue booking.

Slater & Gordon shareholders may be surprised therefore to hear that management are preparing to launch a blockbuster deal to dwarf all previous acquisitions – for part of a company that still has serious questions hanging over its accounting practices.

Furthermore, Quindell’s unusual negotiating strategy of announcing the deal’s potential details to the market is unlikely to impress Slater & Gordon, and instructive as to its troubled past in falling victim to market rumour and gossip.

The UK company’s lowly share price has made double-digit gains on every positive deal-related announcement to the market and there have also been leaks from unconfirmed sources to business journalists over the deal’s alleged details.

So what’s the big attraction of Quindell’s legal services division?

Slater & Gordon’s CEO Andrew Grech has hinted recently that it’s the chance to develop new business channels in personal injury (PI) law that is attractive about the Quindell acquisition. The lucrative new business channels targeted are those direct to insurers rather than just consumers.

Quindell’s legal services division currently provides solicitors and barristers to popular UK insurers to negotiate claim quantums or defend liability on claims received, primarily involving road traffic accidents. Currently Slater & Gordon undertakes a lot of its fee-earning PI work on the other side of the ledger representing the claimants in cases.

How would Slater & Gordon pay for it?

If Slater & Gordon were to bid an amount even halfway close to the $1.2 billion being mooted, it’s going to need raise a lot of cash.

Deal-funding options would include cash, debt and an equity raising with all three firmly on the agenda given the potential deal size and a mix more than likely. Slater & Gordon would have the option to borrow in the UK where debt is cheap and existing cash reserves could contribute some part.

However, a capital raising would likely contribute the lion’s share, with a placement alongside a share purchase plan for retail holders, or a substantial (renounceable or non-renounceable) rights issue the two most likely candidates.

Any Australian dollars raised to exchange into UK pounds would be at an FX rate that has moved against it moderately strongly in recent years, to approach a 2:1 basis today.

Hung jury for now

With nothing confirmed it will be notable to see how Slater & Gordon’s share price reacts on Tuesday morning to Quindell’s declarations, with a big share price swing suggesting the market believes a monster deal is afoot. Although, a moderate move would suggest the market is yet to be convinced Slater & Gordon is preparing to go all in.

Given the two companies recent track records, I would personally be surprised if anything like the £640 million sum is offered in the near future.

If you're an Australian investor looking to profit from an Aussie success story you may be better off looking closer to home...

[stephan1946] 17/3/2015 11:39

juicing, you is talking poo, poo/ just like EL plonker, aka Mr Tumble.

GO AWAY.

[elcapital] 17/3/2015 11:37

He didnt write it, bellend

[r_bedding] 17/3/2015 11:34

Doesn't matter how much you write and how good you think it sounds, it is still mis-leading full of mis-truths and you have an agenda. It is boring and tiresome. You really show everyone how transparent you are by continually writing rubbish. No one actually cares what you think anymore as it is quite well known and well proven what a liar you are. Agenda driven!!!!

[juicin drumroll] 17/3/2015 11:23

It's more of a faith thing than an investment for you, isn't it bellend.

Obviously S&G are going to struggle to raise £640M to pay for businesses that RT bought a few months ago for about £50M.

What bank wouldn't jump at the chance to fund something that has allegedly ALREADY gone up 1200% as a result of RT's & QPP's magic touch?

The Australian Motley Fool is sceptical. Rightly IMO.

hTTp://www.fool.com.au/2015/03/17/is-slater-gordon-limited-moving-closer-to-a-giant-uk-acquisition/

Is Slater & Gordon Limited moving closer to a giant UK acquisition?

Australia’s largest listed firm Slater & Gordon Limited (ASX: SGH) is reportedly moving closer to a huge £640 million ($1.2 billion) acquisition of the legal services division of UK AIM-listed professional services group Quindell PLC.

Big numbers

The eye-watering sum of £640 million (plus future payments related to other PI cases) is being touted by none other than Quindell Plc itself in an overnight announcement to the London Stock Exchange, which stated the amount was among a “number of deal structures” being discussed with Slater & Gordon.

This deal structure has also been reported by London’s The Sunday Times Newspaper, which also suggested to expect an announcement over the deal by March 23, when Slater & Gordon’s exclusivity agreement runs out.

Is it the real deal?

Slater & Gordon has yet to make an announcement to the market over any details on the deal other than to confirm it is in negotiations and that a deal may or may not happen. However, given that Quindell itself has released this amount (among other deal structures) to the market some credence has to be given to it.

Although, Slater & Gordon has never hinted at a deal size and given its past track record of acquiring UK law firms on multiples of around 1x annual revenues, the £640 million sum would appear out of kilter. It’s worth noting that recently The Financial Times reported Quindell’s legal services division’s half year revenues at £180 million. That amount doubled would be far short of £640 million, but is still a significant amount for Slater & Gordon to cough up.

Moreover, Quindell has a patchy history having lost around 80% of its market value in the last year after falling victim to one of the most infamous short selling attacks in trading history and losing its CEO amidst an investigation into its accounting practices. Currently audit firm PWC are due to report on the validity of said accounting practices, including accruals and revenue booking.

Slater & Gordon shareholders may be surprised therefore to hear that management are preparing to launch a blockbuster deal to dwarf all previous acquisitions – for part of a company that still has serious questions hanging over its accounting practices.

Furthermore, Quindell’s unusual negotiating strategy of announcing the deal’s potential details to the market is unlikely to impress Slater & Gordon, and instructive as to its troubled past in falling victim to market rumour and gossip.

The UK company’s lowly share price has made double-digit gains on every positive deal-related announcement to the market and there have also been leaks from unconfirmed sources to business journalists over the deal’s alleged details.

So what’s the big attraction of Quindell’s legal services division?

Slater & Gordon’s CEO Andrew Grech has hinted recently that it’s the chance to develop new business channels in personal injury (PI) law that is attractive about the Quindell acquisition. The lucrative new business channels targeted are those direct to insurers rather than just consumers.

Quindell’s legal services division currently provides solicitors and barristers to popular UK insurers to negotiate claim quantums or defend liability on claims received, primarily involving road traffic accidents. Currently Slater & Gordon undertakes a lot of its fee-earning PI work on the other side of the ledger representing the claimants in cases.

How would Slater & Gordon pay for it?

If Slater & Gordon were to bid an amount even halfway close to the $1.2 billion being mooted, it’s going to need raise a lot of cash.

Deal-funding options would include cash, debt and an equity raising with all three firmly on the agenda given the potential deal size and a mix more than likely. Slater & Gordon would have the option to borrow in the UK where debt is cheap and existing cash reserves could contribute some part.

However, a capital raising would likely contribute the lion’s share, with a placement alongside a share purchase plan for retail holders, or a substantial (renounceable or non-renounceable) rights issue the two most likely candidates.

Any Australian dollars raised to exchange into UK pounds would be at an FX rate that has moved against it moderately strongly in recent years, to approach a 2:1 basis today.

Hung jury for now

With nothing confirmed it will be notable to see how Slater & Gordon’s share price reacts on Tuesday morning to Quindell’s declarations, with a big share price swing suggesting the market believes a monster deal is afoot. Although, a moderate move would suggest the market is yet to be convinced Slater & Gordon is preparing to go all in.

Given the two companies recent track records, I would personally be surprised if anything like the £640 million sum is offered in the near future.

If you're an Australian investor looking to profit from an Aussie success story you may be better off looking closer to home...

[juicin drumroll] 17/3/2015 10:51

LOL.

This isn't LSE, BaloneyBoy!

She's allowed to raise concerns & discuss them.

FFS, QPP isn't a religion.

Is it?

[elcapital] 17/3/2015 10:31

stephan has gone senile, best ignored.

[jonc] 17/3/2015 10:30

No idea what you are talking about.

Is it a childrens programme on day time TV?

You should get out more.

[stephan1946] 17/3/2015 10:29

Are you another candidate for mr tumbles house, jonC??

[jonc] 17/3/2015 10:25

My friend in Nigeria offers an excellent rate.

Ideal for QPP bulls.