Wameja Share Discussion Threads

[unabkxb] 14/9/2020 08:04

Lets hope for the higher bid or improved offer.

[johnv] 14/9/2020 07:53

What doesn't look good, your use of the word solvency or a higher bid.

[johnv] 14/9/2020 07:53

What doesn't look good, your use if the word insolvency or higher bud?

[johnv] 14/9/2020 07:52

This is a scheme of arrangement takeover, 71% of takeover had some structured S of A underpinning them.

[unabkxb] 14/9/2020 07:35

What is a Scheme of Arrangement?A Scheme of Arrangement helps a company in the restructure of its debt, and aids recovery from financial distress. It is not an insolvency process and is utilised under the Companies Act 2006 rather than insolvency legislation, but it must still be sanctioned by court process.Doesn't look good.

[daveme] 13/9/2020 17:49

The reason why the bid has come about might be due to the fact that WJA is unable to stump up its share of the funding required to cover the time between payment and receipt. I know they were looking at how the funding would be provided going forward without forever asking shareholders for the cash. Perhaps if those discussions didn't pan out that only left one option, namely MC taking full control of Homesend.

[gerihatrick] 13/9/2020 16:59

I have sought advice on this and that advice is that a scheme implementation agreement is simply one step away from being insolvent and that shareholders would get slightly more from from this as opposed to insolvency. Surely we are not near that situation and therefore this proposal should be rejected?

[johnv] 13/9/2020 14:50

Thanks for that.....

[johnv] 13/9/2020 14:50

That's for that, who do you think decided on the S of A? The directors or MC?

[johnv] 13/9/2020 11:27

That's weird, Visa News on Twitter is followed by Homesend

[slicethepie] 13/9/2020 11:02

Surely odious lomabard are behind this as they publicly supported this, l&g are not capable of anything like this they couldn't run a bath.

[tomv33] 13/9/2020 10:46

Yes, it isn't alot for a director. Even my family own more that both directors families together lol

[unabkxb] 13/9/2020 10:41

Sorry, £200k.

[unabkxb] 13/9/2020 10:41

Even then thats only £100k for years of work.

[tomv33] 13/9/2020 10:37

The director, John C, he and his wife over about 2.5million shares between them I think.

[roscoe99] 13/9/2020 09:37

Gross Value Flows have increased 158% in 6 months this year so far. HomeSend is taking off. Was eagerly awaiting the next KPI in 4-5 weeks.

This is NOT a take over. its a Scheme of Arrangement - a totally different beast.
They can be more easily beaten.
Just need 25% of shares to vote NO
or 50% of voters (ie larger numbers of small holders can defeat) at the scheme meeting on 20 Nov..

This suits the big boys - they're depending on smaller voters apathy.
I'm voting NO - only takes 10 mins to put a proxy in. If it fails - no worse off. If it defeats the SOA then we'll have another 1 or maybe 2 kpi's
before the dust settles. MC can come back with a better offer. 8p would become a floor.

The terms of the JV Collaboration agreement say they have to give fair value.

Mastercard may trigger a deadlock process if eServGlobal vetoes a key corporate matter leading to a 30 day period to resolve the matter in good
faith. If no resolution, the Board may override the veto giving eServGlobal the option to sell its shares to Mastercard at fair value (being an
agreed price or a price determined by an independent valuer).


hxxps://data.allens.com.au/pubs/pdf/ma/takeovers-handbook.pdf

Approval by a vote of shareholders by at least:
• 75% of votes cast; and
• a majority by number of all target shareholders
present and voting (in person or by proxy).
Bidder is usually treated as a separate class,
assuming it owns target shares. Court has
discretion to waive the majority by number test

I don't believe there's such a thing as "Independent valuation" when the client gets to pick who does the valuation. If the valuer doesn't give the expected result they won't get another gig.

Don't expect too much from the board - now that the SOA is signed - they are not allowed to be negative about deal.

[unabkxb] 13/9/2020 09:15

And we need to see the booklet which will contain the Directors reasons for recommending the offer.As far as I can see they have less than 1 million shares each and now zero Options so arent getting rich on this deal.Anyone know differently?

[tomv33] 13/9/2020 07:57

Let's see what the report says. L&G are the reason it's an 8p bid

[dr biotech] 12/9/2020 22:39

The directors have publicly backed the offer, therefore they think 8p is reasonable. Fin cap always seem to give target prices of 150-200% of the current share price of all the companies they represent. Independent report will just rubber stamp it. Can you really see MC and their highly paid advisors stumping up another $100m to satisfy a few PIs?

[tomv33] 12/9/2020 21:03

I wonder if the directors know the bid will be improved to 15 or 20p through the independent report, so they are recommended shareholders to vote for the 8p bid, that could be amended?

[daveme] 12/9/2020 20:43

Doc, I'm not sure why you don't think there will be an improved bid. It will all depend on the independent report. Whatever the report comes up with will be the final figure. Hence assuming it is truly independent then it could well be greater than 8p, especially since FinnCap reckons the shares are worth 20p each.

Admittedly, I don't see a new bidder throwing their hat into the ring.

[tomv33] 12/9/2020 17:27

There is a chance, but very slim.

[dr biotech] 12/9/2020 14:34

No chance of an improved bid.

The timetable indicates settlement around dec 8th. Three months for an additional 7-8% not exciting but as I said before I’ll hang on.

[mcmather] 12/9/2020 13:37

Cracking summary that johnv; hope it's accurate!