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The Times say hold quite clearly in their previous article
Clearly the Etonian at Shadiwfall has a mate in the Times who gives him a voice …. But why publish this call , if indeed Shadowfall are not shorting Dark
If there is not a bid , then of course some people may sell , but so far we are waiting news of offer bid
Don't get too fixated in the past and the media. The report merely states one of the facts I.e. past acquisition price is 10x trailing revenue but that does NOT mean it was the metric used to calculate the price. Darktrace have much lower people cost than US companies hence it is much closer to profitability than competitions.
Hi Lending I was responding to C...SG he said earnings, but yeah Thoma Bravo (TB) pay 10X trailing revenue
Earnings - money obtained in return for labour or services
I don’t think I understand what you are saying Petrobull.
If the market cap is 10x trailing earnings ( E= net profit implying a PEratio of 10) But if the earnings are negative in FY22 - a distinct possibility- . and if TB pays as per typical on 10x trailing earnings then surely they will need to be paid to takeover DT.
I am somewhat confused as even if the earnings are slightly positive 10x trailing earnings will be peanuts. Even a trailing earning of say $50m means only $500m to takeover. Perhaps you mean 10x sales (revenues).
c2645sg yep the market cap is 10 x trailing earnings and that's what TB have typically paid to acquire businesses such as DARK.
This isn't luxury complex hardware like Aston Martin Lagonda cars, software once developed is 100% margin and DARK have 48% YoY earnings growth so 10x trailing might be a bargain...
The market cap is now over 10 x current earnings!
But Dark will try not to screw its past investors as far as possible , especially those who bought at 750 p !
I agree Sheltie. Those selling shareholders were basically the big original investors who still own the vast majority of shares now along with management and employees. So they have already demonstrated they are happy at prices between 410 and 750. So those new investors although they bought big chunks won’t have enough power to influence the sale of the company and at what price
Honestly no idea - of what the best offer could be - let’s assume 700 p for now , anything extra a bonus …
The chart of Dark shows we are back at March levels , so many resistance at this level until when and if clear offer comes …
Can anyone understand the dynamics of all these short and long positions in the RBS
Given we were at 415 p when this started 700 p would be a level many investors might accept ( those who bought at the 750 p placement would be getting a loss unless they added more at lower levels )
Let’s see , no idea !
Can we reach 550 p and 600 p next ? Then see the offer
I expect it to be around 650p. I just want it done now,i hate uncertainty.
Totally agree any offer imo will range from 650- 700 tops. Hope I’m proven wrong
Yes the previous placements are not relevant to any potential offer. If it's say £7 and accepted, then everyone who paid more, (be they DT employees, Institutions or Retail investors) loses what they paid above. Previous Placements will not be of any consequence to a buyer; they will only pay what they feel is a fair premium. Of course those that paid a high price will think differently! But at, again let's say £7 - then I am 100% certain that it would be accepted. Those who bought in to the Placements at £7.50p will, likely as not, lose out here; 'if' a deal is completed - which is by no means a certainty, should the BoD get greedy (like £9!!). £7 would seal it I reckon and perhaps £6.50p (which is still £1.12p higher than as I type and more than double where we were just last month)..... ATB
Placements were
6/8/21. 620p
1/10/21. 750p
27/4/22. 410p
This wasn’t new money. It was IPO investors and Employees selling to new investors.
750 p there was a placement , so assuming a 10 per cent premium at least on the highest placement , we are at 825 p …, 825 p minimum buyout price :)
Watch Dark jump over 600 p in next 2 weeks or so in preparation … maybe :)
750 p was one placing !
580 p too
410 p was small employee one
And one other ?
Well done metis.
Of course they should Charles thats like saying should I or you be allowed to hold shares .
These funds help us when a merger or takeover approach comes out as they also like you and I want the best price we can get. :-).
https://www.londonstockexchange.com/news-article/market-news/result-of-secondary-placing-of-shares-in-darktrace/15426499
https://www.londonstockexchange.com/news-article/market-news/results-of-secondary-placing-in-darktrace-plc/15197528
https://www.londonstockexchange.com/news-article/market-news/result-of-placing-of-existing-shares-in-darktrace/15156817
https://www.londonstockexchange.com/news-article/market-news/result-of-placing-of-existing-shares-in-darktrace/15088411
Good question - can anyone remember?
The RNS history will show
What SP were the three placements made at?
Again 650 would undervalue future growth , and burn investors who bought higher , and investors who bought into their 3 share placements - who knows let’s see
The big funds who own shares already … should they be allowed to continue as shareholders ?
Can’t see anything less than £6.50 being accepted myself but even then, that’s the low end IMO. GLA
Out of the dark
If only Darktrace simply had to deal with cyber threats. Instead, it’s had to grapple with constant questions about founder investor Mike Lynch: the ex-Autonomy boss fighting extradition to America to face criminal charges for allegedly fraudulently inflating the software group’s value — before 2011’s sale to Hewlett Packard for $11 billion.
He protests his innocence. But it’s all cast a shadow over Darktrace, which Lynch helped to build with other ex-Autonomy staff, including chief executive Poppy Gustaffson. Lynch still owns 4.3 per cent, while his wife Angela Bacares has almost 8 per cent: a stake trimmed last month via a £20 million share sale.
So it says something for Darktrace that, despite all the noise around Lynch, it’s a rare 2021 float that hasn’t bombed. Listed at 250p in April last year, the shares hit 945p in October before Darktrace proved that even a cybersecurity group built on whizzy artificial intelligence couldn’t withstand a 51-page “sell” note from Peel Hunt analyst Oyvind Bjerke. His view that there was a “disconnect” between the soaraway “valuation and the ultimate revenue opportunity” tanked the shares.
Even so, they were still drifting around at 415p before tech-focused buyout firm Thoma Bravo pitched up with some “preliminary and conditional” takeover proposals — enough to send Darktrace up 25 per cent to 515¼p, where it’s valued at £3.65 billion. Bravo bought rival cyber outfit Sophos for $3.8 billion in 2019, offering a 37.1 per cent premium. But Needham analysts reckon Darktrace would “reject an offer at a 40 per cent to 50 per cent premium”. Really? Given the Lynch baggage, investors may well settle for less. A quick IPO profit brings security of its own.