Rws Share Discussion Threads

[alphabeta4] 28/8/2020 12:00

Doing some quick calculations at below £6.69 RWS is being down valued by more than the premium it is paying for SDL.

It feels like we're experiencing a similar reaction to the Moravia acquisition in late 2017. It was also a chunky acquisition compared to the RWS market cap at the time which made the placing go through at a 19% discount to get it away. It subsequently settled fairly quickly and went up 20% in short order.

One suggestion would be given the potential overhang from SDL shareholders (especially PIs) converting their new RWS shares to cash combined with RWS now having a net cash position it would seem logical to launch a share buyback program. They're going to be busy anyway integrating this along with the two others from the 9/6 statement and with a pre tax profit of around £96m this year even before the £15m synergies they should be able to do a chunky amount.

Overall with double digit earnings growth and a net cash position looks an attractive entry point IMHO.

[phillis] 28/8/2020 10:46

time for a top up after recent sales

[toffeeman] 28/8/2020 10:42

The market thinks that SDL is worth less and the synergies will be less than calculated.

[jdh1602] 28/8/2020 09:59

5-year all-time high, at least! :)

[jdh1602] 28/8/2020 09:57

Also, if you look at the weekly chart, the share price dropped from an all-time high - a good time for short-termers to take profits. And other holders panic, as usual.

[undervaluedassets] 28/8/2020 09:29

right .. is the SDL considered over valued then ?

on paper looks like a good fit ... lots of synergies

Have owned RWS in the past and they have been good to me...

So was very attracted to the dip.. looked overdone.

hardly bad news is it

[undervaluedassets] 28/8/2020 09:13

right there is a merger ...

so why has this tanked ?

simple explanation please..

[phillis] 27/8/2020 19:45

Well he is going to be “employed̶1; for 12 months and presumably there will be some kind of non compete

[essentialinvestor] 27/8/2020 19:15

TransPerfect.


Mentioning it as he's done a sterling job. Nice payday regardless.

[phillis] 27/8/2020 18:57

Which competitor did you have in mind?

[essentialinvestor] 27/8/2020 18:12

Surprised they are not retaining the SDL CEO, who has arguably been pivotal
to their recent multi year progress.

Hope RWS know what they are doing, particularly if he goes to a competitor.

[nocton] 27/8/2020 13:59

"Does IHT exemption still hold if proceeds are invested in other AIM shares?"
Yes.

[alter ego] 27/8/2020 13:58

Yes proceeds from sale of one IHT exempt stock into another carries over the previous period of ownership towards the 2 years required for exemption. To the best of my understanding. All this might change in the coming budget as HMRC are seeking to reduce exemptions - bar stewards!

[slogsweep] 27/8/2020 13:40

Does IHT exemption still hold if proceeds are invested in other AIM shares?

[mach100] 27/8/2020 13:35

Should recover from this with a fairly powerful entity going forward. Market doesn't like the dilution and of course SDL has the premium. Will pick up more when the share price settles.

[alter ego] 27/8/2020 11:28

think stock has to be on aim at point at which disposal occurs eg death or sale. HMRC only determine IHT exemption at this point.

[toffeeman] 27/8/2020 10:40

Yep good point Phil - but surely with the two-year holding period Brode is already exempt? Or does exemption disappear if on main list?

[phillis] 27/8/2020 10:13

More to do with Andrew Brode’s large holding which is eligible for IHT relief

[toffeeman] 27/8/2020 09:52

Still at historic high - maybe:

1. they thought they could get SDL slightly cheaper
2. uncertainty about cost saving synergies.

Will they stay on AIM?

Issue with tax efficient investment funds if they move?

[phillis] 27/8/2020 09:19

Excellent news if it was
Makes SDL cheaper

[redartbmud] 27/8/2020 09:12

Rws down c4.5%
Pumped for the deal?
Hmmm....

[phillis] 27/8/2020 08:16

So what
No cash involved, using v high premium equity