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Question.
Darktrace has been bought by a US company. So what happens to the UK shareholders and their shares?
Prof - Why would it be bad for PIs in your view though?
"UNDERVALUED ON THE MARKET
Panmure Gordon analyst Harvey Robinson said the price did not reflect any significant synergies, and it could trigger interest from a trade buyer such as Palo Alto."
The SoundMan
I came out of the co some while back.
TI saw the reference to potential interest from Palo Alto online in one of the articles I was reading, believe it was Reauters
Wini/well done! ,you must have doubled bubbled on this. Now this gives me another problem. Ive got my position in the 4 stocks im holding. So now im looking for No5
Be interesting next week too see the plethora of Form 8.3 RNSs showing who the major stakeholder voters are
Does this mean that any new offer/bid has be before the current offer is sanctioned by the court? Thank you
Lending - That's pretty much my understanding but thanks for doing the legwork and confirming.
On one hand 75% isn't a high bar, particularly with so may IIs in from the IPO at 250... but on the other hand only 14.4% irrevocable is a pretty low starting point. They've got a bit of work to do and every day that takes gives other bidders more opportunity.
It is mentioned here
https://www.lse.co.uk/news/DARK/thoma-bravo-to-buy-uks-darktrace-for-about-532-billion-4beyzn1ebhci2zl.html
Should also be noted that not all ThomaBravo deals go through
I don't believe any new bidder would be bad news for PIs. The floor is 620.
Unless The Professor knows something I don't of course but as he's not a regular DARK contributor (or investor probably) I suspect it was a bit random, although I'd be happy to hear him expand on his statement.
I have just read Appendix7 of The Takeover Code on Schemes of Arrangement - all quite complex. But it does lay out timeframes so it looks like it would take at least 3months. It looks like it is the fast Tracy route to getting 100% control.
The main steps are - go to court agreement for the scheme then arrange a shareholder meeting. . Must get 75% of of the acceptances at this meeting and if so game over and all will be paid 620p on the takeover date. Not sure what happens if 75% is not obtained, but one option is that the Scheme lapses and they would need to start again. It does not seem possible to have a counter offer once sanctioned by then court.
This differs from a more usual, in my experience, with Contractural Offers where only 50% is required to become unconditional at the shareholder’s meeting, and then the buying company would have to haggle with the remaining shareholders until they have 90% after which sale is compulsory. This can take a long time.
Please excuse my ignorance - why would a bid from Palo Alto be bad news for private investors. Thank you
'those' not this - typo!
Well, looks like it is what it says on the tin.
I'm taking it as stated, unless of course we have another RNS after close!
Bagging a tremendous profit so I'm happy.
A big thanks to this who gave sound advice, particularly s/w
Let us not forget those Board Members and staff at DT who may have an uncertain future when the takeover goes through.
Can be a worrying time for the likes of Poppy. But thanks to all of us Shareholders that kept unknowingly gifting the board free shares at least Poppy will have around £19m to soften the blow. Let us also not forget the £2.2m Poppys brother will now get. Good luck paying that tax bill.
There is mention of Palo Alto as a potential bidder. Really bad news for pi
Safer bets
Tech funds
China funds
What is low now but strong chance of recovery in 6 to 12 months?
26milllion traded today, or 3.7% of shares issued.
That's a fair percentage of the RI / free float, but a significant proportion of that sector does tend to think in the very short term. Ie, emotion and fear over calm assessment and strategy.
Poppy , maybe given a secret good deal by Bravo (plus others too)
the ML issue no longer a risk for the Directors
Bravo is good at software buyouts
How long does another Bidder have to offer ?
What does that tell us?
I’ve been a holder since IPO and obviously I’ve done well out of darktrace but I’m disappointed today I was hoping to see this price go above 10 pounds in 2 or 3 years time I do wonder why this wasn’t listed in USA when it went to a PLC I’m sure it would be worth more then TB our offering now if it had gone on the Nasdaq
Any idea of the time frame involved? 3 months , 6 months or other for the deal to be completed?
Thank you
PHNX are a dog share with a good divvy. Been in them for years and not broken even on a badly timed purchase at much higher than 470. Great for income of course but cap gain another matter although there's hope from this level I suppose.
It's a tried and tested model. Buy low in the UK, run it privately for 2 or 3 years and then re-list in the US. They'll probably triple their money.
I don't think RIs have any hope of stopping this but if you've sold hoping the sale will fall over and you can then buy back cheaper you can forget it.
This is a one way bet now. You hold or buy ay 608 and either get your stake money +2-3% in 3-6 months or you get a much better return if another Company enters the bidding. That's why certain types of Investor jump in after the initial furore of the takeover announcement has died down.
"Its move private will be seen as a major blow to the London Stock Exchange, where it listed in 2021. The company was seen as a welcome dynamic addition to a market often characterized as less appealing to technology firms than those in the U.S. or Asia, and stacked with “old economy” players, such as miners and oil and gas companies.
Darktrace specifically referenced its belief that it is undervalued in the U.K. as a reason for the sale. In a statement, it said its board believes the firm’s operational and financial “achievements” are not reflected in its valuation and that shares are trading “at a significant discount to its global peer group.”
https://www.cnbc.com/2024/04/26/uk-tech-darling-darktrace-rallies-after-agreeing-5point32-billion-sale-to-private-equity-firm-thoma-bravo.html