Wameja Share Discussion Threads

[johnv] 12/9/2020 13:27

The story so far, as I believe is.... Odious has told the Directors they want out and said to ask MC for a takeout price or else they will start dumping huge no of shares onto the market. The directors reluctantly have asked MC for a price. MC have given a off the cuff 8p. Odious are happy with that but the Directors are not. Hence they have said to MC ok 8p... but there must be a independent review. Everybody has agreed. The independent review will happen knowing the 8p offer and Fincapp estimate of 20p. Chances are result will be in the middle. SCSW got wind of a review but not the offer hence their belief that the price will be nearer 20p, hence mega.

Slightly edited.

[tomv33] 11/9/2020 21:02

Has anyone ever known a takeover with an independent valuation report?

[tomv33] 11/9/2020 21:01

And why are the directors backing/recommending the 8p takeout? They are defo not happy about that... I wonder if they know the valuation report will show a much higher price and will try to get the max price as L&G have pushed them for the offer.

[tomv33] 11/9/2020 20:56

And who has asked for the valuation report? It wouldn't of been MC. Has any other companies had this valuation report done before, what was the result?

[tomv33] 11/9/2020 20:42

Who ever is buying in might be related to whoever is doing the independent study

[tomv33] 11/9/2020 20:40

When will the independent expert valuation take place ?

[slicethepie] 11/9/2020 15:10

Quite ironic that the chairman of the QCA is Adam Mcconkey head of small cap investing at odious Lombard. Surely this is not what they preach at the QCA

[slicethepie] 11/9/2020 15:06

It's only odious Lombard who think this is a good deal. I can't find their perf numbers but suspect they are seeing big redemptions hence happy to force this to roll over just when this was seeing the benefits of all the investment pay off. MC probably can't believe there luck.

[johnv] 11/9/2020 13:42

Wonder whether SCSW had a meeting with the Directors who mentioned that there was going to be a independent expert valuation, hence his use of mega

[tomv33] 11/9/2020 13:30

Any idea when the report will happen?

[tomv33] 11/9/2020 13:27

I saw on articles that the directors strongly recommend shareholders to vote for the bid. I will not, but it looks like we won't get much choice

[dr biotech] 11/9/2020 13:18

It’s all a bit daft. If you work out the value of company then divide by the number of shares it’s unlikely to be a nice round number. And the valuation is going to be a finger In the wind job anyway. But I’m pretty sure they will start with 8p then work out the valuation.

[largeronald] 11/9/2020 12:21

I'm sure it'll be made well worth the Independent Expert's while to ensure the company's value isn't more than 8p per share.

edit: these kinds of deals are a stitch-up of the shareholders right from the start - as someone on here has mentioned - see Paysafe.

[daveme] 11/9/2020 12:07

Our only chance is if the Independent Expert's Report says the company is worth more than 8p per share. What ever figure the report comes up with MC will have to pay it. Let's hope the analyst at FinnCap is tasked with drawing up the report!

Unfortunately the market doesn't think a higher value is forthcoming.

For what it's worth, reading the RNS I got the feeling the director's aren't too happy with the deal but can't reject it since the big investors want it to go ahead.

[slicethepie] 10/9/2020 22:12

It is not helpful having L&G as the second largest holder, they are also seeing redemptions so unlikely to turn down a quick buck given their performance is poor. They don't tend to publicise their support so only an educated guess

[slicethepie] 10/9/2020 21:25

All routes lead back to Lombard odier.... they are the ones delivering this to mc at the wrong price.

[tomv33] 10/9/2020 20:13

Maybe he thought 80p, not 8p lol

[tomv33] 10/9/2020 19:17

And it's strange how Finncap always valued this at 20p now MC bid 8p. If they get this for 8p, has that director John been tested for Brain Tumours recently? ......

[tomv33] 10/9/2020 19:15

My wonder is why the directors are backing an 8p bid, I was thinking they would of wanted a 20p bid or something like that...

[mcmather] 10/9/2020 18:52

13p would be circa us$200m. Still absolutely chuff all to M/C for what they would be getting.

[chrismenon] 10/9/2020 18:40

If just a few IIs hold out with the bulk of PIs Mastercard may have to bid more. Mastercard need 75% of Wameja shareholders to approve this. If I was Visa I'd also be tempted to offer 10p just to make Mastercard pay more and secure a strategic stake in my rivals cash cow. Udderly frustrating: hxxps://www.minterellison.com/articles/how-a-scheme-of-arrangement-works

[daveme] 10/9/2020 17:34

Another takeover where the private investor is screwed. The same thing happened to Paysafe just as the US online gambling market was starting to open up again. An agreed bid was announced for Paysafe on the same day Paysafe agreed to takover a separate company that would have caused the share price to increase at least half of the premium of the agreed bid! Now we are getting shafted again.

Note FinnCap reckoned WJA was worth 20p per share. Although being the house broker and hence possibly over enthusiastic in its valuation, 8p per share is just 40% of that share valuation.

For the record, SCSW did originally recommend WJA when it was still ESG and it did hover in the 12-13 range around that time (and I should know since I bought some at that level!). Consequently for long term holders 8P is a disgrace, especially as HomeSend is just starting to ramp up.

Unfortunately I don't see the offer being raised, barring the outcome of the Independent Expert's report that apparently is going to be carried out. No company is going to spend £100Ks to put in a bid just to cause Mastercard some hassle.

[largeronald] 10/9/2020 14:55

As far as I can make out, the ones in favour so far come to less than 30% of the total. If the other instis are against, this could be voted down in November.

[slicethepie] 10/9/2020 14:01

When 24% of shareholders and possibly a few friends say they will back a takeout at 8p the board have little choice but to rollover