Talktalk Telecom Share Discussion Threads

[paulo435] 17/12/2020 09:58

Jul/August the TalkTalk employee share ownership scheme purchased £16.8M worth of shares at 75p per share. 22,428,739 shares. It’s a transaction that defied any previous purchases I could see and one of the reasons that added to the justification for me buying in just shortly beforehand. What does it tell you? A cool £4.9M profit in 4 months based on offer price ie £21.8M worth - if they cash in. Or will they be taking their stake in newco? Hmmm, the rewards of insider info

[la forge] 17/12/2020 09:08

PROLIFICNORTH


17 December 2020
TalkTalk directors agree £1billion takeover

by Stephen Chapman

TalkTalk has confirmed this morning that it has agreed a £1.112bn takeover from its second largest shareholder, Toscafund Asset Management.

The Salford Quays-based business said that it had reached agreement on terms and was recommending that shareholders accept the 97p cash offer.

"Having considered in detail the best interests of all shareholders and TalkTalk as a whole, the Independent TalkTalk Directors believe that the cash offer from Toscafund provides an opportunity for shareholders to recognise immediate value for their shares at a premium of approximately 26% to volume-weighted average price for the three month period ended 7 October 2020,” said Ian West, Senior Non-Executive Director of TalkTalk, on behalf of the Independent TalkTalk Directors.

“The Independent TalkTalk Directors have also taken into account the risks associated in achieving TalkTalk's strategic ambitions and the wide support that Toscafund would provide in this regard. The Independent TalkTalk Directors believe, taking into account the advice they have received, that the terms of the cash offer are fair and reasonable and are unanimously recommending that shareholders accept the cash offer."

The acquisition would take the company into private hands.

"I am pleased to have the opportunity to continue to be a major shareholder in TalkTalk. My decision underlines my passion for the company and the confidence the senior management team and I have about our journey ahead,” said TalkTalk Chairman, Sir Charles Dunstone.

“That said, as the UK transitions to full fibre we have a hugely challenging, but exciting opportunity. Being a private company would allow us to accelerate adoption and focus on our role as the affordable provider of fibre for businesses and consumers nationwide. The Telecoms industry is going through a fundamental re-set and we are keen to play our part in it."

Announcing its half year results at the same time, TalkTalk revealed that it had had a “robust operational performance” in spite of Covid-19.

Its headline EBITDA has fallen year-on-year by 12.9% to £122m and operating profit was also down to £20m, from £29m in the same period last year.

[paulo435] 17/12/2020 09:06

Ok gotcha gw ;)

[1224saj] 17/12/2020 09:05

Blockbusting 6 month results, which I knew they would be. TF are steeling TT. Interesting how they spin the price at a 27% premium, their city pals engineered the price lower on shorts.What I can't understand is why virgin or Vodafone have not come forward.I shall be taking advice on my options as I would prefer to stay in for the juicy divs that will be coming, as we all know Charlie boy likes his divi's

[1gw] 17/12/2020 09:01

High risk in the sense that there's a low probability of success, ie a high chance of losing your "premium" (the amount you pay over the 97p offer price) if you hold to expiry (when the acquisition completes without a counter-offer appearing).

[paulo435] 17/12/2020 08:57

Don’t you therefore mean low risk?

[1gw] 17/12/2020 08:35

Holding, and even buying at these levels, could be viewed as a low-premium high-risk option now the price is underpinned by the recommended offer. You don't need a high probability of success (counter-offer) to give an expected positive value.

[dagsteeth] 17/12/2020 08:27

And interestingly the market is trading above offer price, so maybe my gut feel was right after all, although to be honest I don’t see a counter bid happening.

[1gw] 17/12/2020 08:18

We have at least until February for a counter-offer to emerge.

[dagsteeth] 17/12/2020 07:34

Oh well, 110p not come to pass. Shame. Suspect reading the offer doc there money to be made in rolling to newco but zero transparency, dividend or exit window, so suspect it’s one to take the cash on, even though I bet the equity value will double over the next 3 years. I wonder what the final exit is? Maybe to a utility?

[paulo435] 16/12/2020 22:37

Not convinced I want a stake in newco, anyone strong thoughts on that?

[dagsteeth] 16/12/2020 21:18

Not fact. But here’s the thing. Tosca always play their hand close to their chest and go back to their take private of Internet Q and just how much they upped their offer at the last moment. Given that 97p is derisory relative to how much other telcos have gone up in the lsat 3 months, the independent directors cannot be seen to roll over at a derisory price - hence the press on it. I suspect the extension to the offer was to sort out financing for a higher offer. If the market was really expecting 97p to be the final offer, you’d think the price would be at 95p. A number of algos were buying at up to 97.5p but no one wants to pay more because they can’t be sure. 110p still isn’t great but given investors can roll into newco it saves face all round. I took the view that it was worth buying back I at around 92p, so I can get money back at 97 and roll the small profit into newco, or make a quick 20pc. Suspect we’ll find out at 7am

[1224saj] 16/12/2020 15:46

Dagsteeth, is that wishful or fact?

[paulo435] 16/12/2020 14:58

Is that just a guess?
If it was fact based/market known then I would have expected the share price to be closer to 110 then and not 97!

[dagsteeth] 15/12/2020 22:45

Deal being announced at 110p a share...today's price action at above the 97p would suggest I'm not far off

[shaker44] 15/12/2020 17:36

They can if they are told what conclusion is needed!

[1224saj] 15/12/2020 15:52

Analysts, couldn't analyse day from night!

[1224saj] 15/12/2020 15:43

It's all a con. I work in Telecoms and my company are connecting 80% of their business broadband customers to talk talk 36 month contracts. They are the only game in town when it comes to pricing against BT,Virgin, Vodafone and SSE. Where's the regulator when you need them?BT for 500/500 service £353, TT £271

[jmid1000] 15/12/2020 12:43

https://news.sky.com/story/talktalk-nears-agreement-on-1-8bn-toscafund-takeover-deal-12161575

[shaker44] 15/12/2020 12:29

City analysts working for who????!

[jmid1000] 15/12/2020 12:25

Edit *City analysts value it at median of 80p

[jmid1000] 15/12/2020 12:18

Deutshe bank claim 97p is fair in the sky news article. Values it at 80p apparently due to debt, so looks like offer is 20% up based on that, but this conflicts from the 175p broker note they released?

[shaker44] 15/12/2020 12:04

How can the board claim to have fulfilled their duty to All shareholders when their own Bank Advisers declare a far higher value than they are selling out for?? Very tacky. And Dunstone a knight of the Realm?! Disgraceful

[jmid1000] 15/12/2020 11:59

Reading sky News report it seems like it's a done deal

[quepassa] 15/12/2020 09:39

SKY NEWS IMPORTANT.

Done deal likely according to SKY.

READ CAREFULLY.


hXXps://news.sky.com/story/talktalk-nears-agreement-on-1-8bn-toscafund-takeover-deal-12161575


ALL IMO. DYOR.
QP