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I've no idea, but I'm down about 30+% here so hoping for something decent
How does it work; will the inevitable announcement – one way or the other – definitely come outside trading hours? If that's 7am we get an hour before trading begins again, or news arrives after the market closes and we get a night to mull things over?
I hope so, just wish it wasn't suspended so the price could be pumped up and I could get out at my break even lol
Guessing this merger has legs, if it wasn’t likely they would have said so by now and relisted
Eve are 12 months ahead of Simba in turning the business around. Some large Simba investors must be wanting their money back? With no possibility of a fundraise, no choice but to talk to competitors. Simba reversing into a smaller rival, who have raised money, and are cutting costs. Advantage lies with Eve, when next trading update in 4 weeks.Maybe something will have happened?
Yes agreed, when you put it like that, I'm sure Eve and Simba have nothing to fear from the C.M.A looking at the potential Merger.....It's more about the 2 firms "survival" in what has become a saturated, highly competitive market place!
Even if products, warranties and delivery are similar I'm not convinced about the paragraphs regarding the competition watchdog. The Asda/Sainsbury merger would have resulted in them having 33% of the grocery market, Simba and Eve combined only have about 3% of the mattress market according to the writer himself.
The two firms have argued that a deal could improve their buying power and cut costs, a pro-consumer claim relied upon by Asda and Sainsbury’s as they unsuccessfully attempted to convince competition watchdogs to allow their merger.
Eve and Simba could face similar scrutiny under current competition rules. “There is significant overlap, with similar features in their hybrid mattresses, trial periods, warranties and delivery. Indeed, the main difference between the two are the physical retailers they partner with and a wider range and price architecture at Eve,” Walton adds.
From the Telegraph...https://www.telegraph.co.uk/business/2019/08/18/loss-making-rivals-eve-sleep-simba-merger-talks-mattress-in/
Reinforces what I thought really.....
One wealthy backer of Simba, the online mattress seller, couldn’t contain his excitement about the start-up’s prospects in May last year. “I fundamentally believe that Simba will deliver a boatload of cash to all investors,” he said.
At the time, Simba, which was set up in 2015, still harboured hopes it would become a billion-dollar company, turning it into a so-called unicorn.
Simba’s arch rival Eve Sleep, which offers much the same product, a foam mattress in a box, was dismissed. “Simba s---- all over Eve, who are public,” said the investor.
Yet the two companies, launched a year apart, are now in “early stage” talks to merge. Rather than a triumph of one side over the other, the possible tie-up is a defensive move that tells of two sets of disappointed shareholders.
Both loss-making firms, one private, one public, are fighting for the same customers, selling almost identical products in a crowded market, both at home and across the Atlantic.
The likes of Casper in the US and Emma, Leesa or Nectar in the UK have all entered the arena in the past five years. The UK mattress market is worth just under £1bn a year, with Simba and Eve accounting for about 3pc of it.
“Merging is the only option to ensure their long-term survival. It’s the first domino to fall in the consolidation of the market as the high marketing costs force many of the smaller brands to merge or fold,” says Matt Walton, a retail analyst at GlobalData.
Look like Simba did the same business plan as Eve and expanded too quickly. Now in the same position as Eve was 12 months ago. Unfortunately the hype over online bedding extras is over, as investors refuse to accept more funding for growth of sales and losses simultaneously. Simba simply put can't raise any money, and reality has hit the firm. Getting Gareth Bale to promote their products wouldn't have come cheap either. Any deal would be on slashing costs for both companies, while agreeing distribution and who is on the new Bod?Terms of equity would also be needed to be discussed for both. If Eve give a offer it must be sub £10m? As Simba is the bigger company, they may have no choice?
Better Eve just walk from any deal.Simba need a bailout, smacks of desperation. Concentrate on current turnaround, and let rivals go under.
A city Analyst has just wrote this and he says according to the RNS Simba will become Eve...BUT this will not be good for shareholders as it will dilute Eve’s shares as the company is as he says “illiquid”
‘Pretty illiquid’ holding
According to Bloomberg, Woodford holds 31% of Eve Sleep, or 81 million shares, while Jupiter fund manager Ben Whitmore, who inherited the stock in the Omnis Income and Growth fund mandate, owns 15.6% of the company.
Seven Investment Management senior portfolio manager Peter Sleep said with average daily trading volume of 431,000 at 5p a share the holding is “pretty illiquid”.
He added: “As I understand it, Simba wants to reverse their business into Eve. I assume Simba will want to keep the listing, but that is not certain. If Eve issues shares in a reverse takeover, I assume the existing shareholders will end up with a diluted share in an enlarged group.
“This transaction does not really address the fundamental problem of illiquidity for Woodford and Whitmore.”
Link below...
https://portfolio-adviser.com/woodford-holding-eve-sleep-confirms-merger-talks/
Dependant on the terms of the proposed merger? Is Eve buying Simba? Is it a merger ? with Simba shareholders receiving Eve shares? With what amount of equity % Until the two Bods talk and decide, just speculation. Prefer a buyout of Simba, so sales are added without much cost. Then a further deal with another smaller competitor to bring scale. Early days before arrival of any news.
Absolutely correct of course there will be "joint cost" savings!.... But that is not my point...it is the fact they are both Loss making..especially Simba...It sounds more like a "rescue package" for Simba than a Good deal for Eve than say If Eve where planning a merger with "Emma" who are doing alot better in this market than Simba are..... Boo Hoo (A very big profit making company, which Eve Are NOT) as you know recently bought out Karen Millen (A loss making company) made sense, because Boo Hoo's Revenues and profits are "sky rocketing up relatively" but unlike Eve (Revenues going backwards) and a Loss making company buying another "bigger loss making" company just doesn't add up to me?? Hopefully I will be proved wrong !!
Well I would hope you wouldn't need two accounting departments, two HR departments, two design teams etc and you could negotiate better deals with suppliers as you're buying in larger quantities. Hopefully!
Yes! Even if 1 company in a “merger” was doing “half well” it might turn into a “positive”...but when both sides are spending and losing money “hand over fist” (relative to the size of the company) then I would seriously think twice about where the positives are for this potential merger, apart from the obvious that it reduces competition....but only ever so slightly as Simba is one of the Less well known “struggling to survive” brands
A lot of private money gone into Symba over the years. A heavy hitting chairman now on board...
https://news.sky.com/story/simba-nightmare-as-mattress-start-ups-value-crashes-to-20m-11634680