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Why would ASLR want restricted stock in MESH rather than its own opportunity to acquire a material stake in Sentiance? I don’t get it. Why would ASLR put its value at the mercy of MESH?
Raising £70m seems unlikely in current economic climate, particularly when £50m couldn’t be raised for the same transaction last year. Also a listing isn’t going to happen with Robert Bonnier on the board.
The MESH proposal is very short on detail - their statement is a bit gungho, whereas that of ASLR much more measured.
Can MESH raise circa £70M?
And could MESH list with the recently appointed Mr Bonnier on the board?
AAA now up 7.6% to 3.30p - 3.50p.
So instead of acquiring a tangible holding in Sentiance and an option to acquire a further stake up to 32%, and completing the RTO, ASLR will get some unspecified amount of restricted ordinary shares in MESH, which is private, owns just 14% of Sentiance and has failed multiple times to raise the cash required to acquire a controlling interest.
The MESH announcement says only that it has made an offer to acquire 100% of Sentiance. There are no details whatsoever about that offer or any timeline for acceptance/completion.
All MESH says is it will complete its deal with ASLR, which is cashless and means nothing, by 10 August.
The timing suggests ASLR is in no position to proceed with the RTO before the 14 August deadline on suspension and this transaction allows ASLR and MESH to kick the Sentiance acquisition into the long grass again.
The question for holders of ASLR is what is the value of restricted stock in a private company that has proved time and again it cannot complete the acquisition of Sentiance and currently owns only 14%.
Note that MESH took a substantial write down on its stake in Sentiance in its recently published accounts valuing it at just £8.9m and it has taken a substantial secured loan from the Bonnier family at 16% pa to keep it solvent.
Hard to see how restricted stock in MESH is appealing.
Quite a few £10K buys going through on AAA and now up 6% to 3.30p to 3.40p - so I guess that is something of a seal of approval for the deal - but then it depends on who is doing the buying.
Makes you wonder what ASLR shares are worth.
There were of course those warrants at 130p, which are excercisable if the price reaches 280p for 5 consecutive days....
Mind boggling if they manage to pull any of this off.
Difficult to say as we (ASLR - a listed albeit suspended vehicle) is being offered shares in MESH - which was once listed but now delisted.
You would have thought it better to have shares in a listed vehicle, and the deal to be the other way round, although no doubt MESH will ultimately list.
But to buy out Sentiance, if done in cash, MESH needs to raise around £70M.
MESH listing assumes of course that Mr Bonnier, if he remains a director of MESH (appointed over the weekend, it appears) sorts out his differences which the FCA.
The only listed (and trading) vehicle involved here is AAA, which has as its only significant asset a holding and options in ASLR and their share price is up today - gone from 2.90p - 3.20p at open to 3.10p - 3.30p now - all buys and someone seems keen to pick up blocks of 100K.
AAA has been quite strong recently, so that has been something of a barometer for me.
So I guess that signifies approval of the deal.
Note worthy that the MESH deal is due to be done by 10th August 2020, whereas we are due to delist on 14th August 2020.
Bit tight but if we are not doing an RTO, then maybe we can come back anyway.
So....... what's the consensus ?
Update on proposed transaction with Sentiance
Tue, 14th Jul 2020 07:29
RNS Number : 9300S
Asimilar Group PLC
14 July 2020
The information contained in this announcement is deemed by the Company to constitute inside information as stipulated under the EU Market Abuse Regulation (596/2014). Upon publication of the announcement via a regulatory information service, this information is considered to be in the public domain.
14 July 2020
Asimilar Group plc
('Asimilar' or the 'Company')
Update on proposed transaction with Sentiance
Further to the announcements on 4 and 12 March 2020, Asimilar Group plc (AIM: ASLR) is working on preparing an admission document relating to the proposed subscription in and the granting of options over the equity of Sentiance N.V. ('Sentiance').
The Company notes the announcement published by Mesh Holdings plc ('Mesh') this morning that Mesh has made an offer to acquire the entire issued share capital of Sentiance.
As part of this offer, the Company has received a proposal from Mesh that Asimilar would receive compensation from Mesh in the form of new ordinary shares in Mesh in consideration for the Company novating the following to Mesh:
i) its rights to subscribe for 10,000 new Sentiance shares at a price of €750 per share ("Initial Investment");
ii) an option to purchase 32,225 existing Sentiance shares at an exercise price of €650 per share ("Option 1"); and
iii) a further option to subscribe for 10,000 new Sentiance shares at an exercise price of €750 per share ("Option 2"), all as announced by Asimilar on 4 March 2020.
The Board of Asimilar is exploring the terms of this proposal with Mesh and is pursuing appropriate due diligence to assess its merits.
In the meantime, Asimilar is continuing to work with its Nominated Adviser and other professional advisers on its admission document in relation to the proposals announced on 4 and 12 March 2020.
Further announcements will be made in due course.
-Ends-