We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Sagi seems to be a bit short-sighted. He's only early 50s so he has quite a few years left to operate in the investment sphere but who would want to invest alongside him in the future? No long-term investor would feel comfortable investing alongside someone who is just looking for a opportunity to shaft you.
Apparently he was the target of an assassination attempt in Cyprus in 2021, so he seems to **** people off.
Yep, that link not responding so went back to the indirect FT link and here's a flavour of their distaste against the offer. They're encouraging holders to go all Ukrainian and resist the enemy -
"With more than half the shares already in Sagi’s hands, minorities should contest the skimpy 13 per cent premium to the three-month average price....
... Shares on Monday traded above the offer price. Even if Sagi controls most of the shares, Kape minorities still deserve more for their holdings. "
With the FT running a piece coming out against the offer yesterday of:
"Kape Technologies: Teddy Sagi gambles on quiet minorities
Shareholders should contest the skimpy 13% premium to the 3-month average price"
---------
It's advocating resisting the offer and just about confirms the financial media as a whole are disgusted with the smash and grab raid. I gained access to the FT article by other indirect links so it may not open if not subscribed. Surprised it allowed me in -
https://www.ft.com/content/b2015b87-d92b-4883-99f7-ed5147a99211
Investors' Champion call the offer "derisory"......more developments to come here imo:
Https://www.investorschampion.com/channel/blog/unkind-offers-accounting-fudge
"Kape shareholders receive another derisory offer.
Shareholders in Kape Technologies (AIM:KAPE), the digital security software provider, are pondering over another derisory offer from the company’s main shareholder Unikmind Holdings.
Isle of Man incorporated Unikmind, which is wholly-owned by Teddy Sagi, controls approximately 54.8% of shares.
The current offer price of 285p per share is a modest 11% premium to the share price last week and only 7.5% up on the share price back in September 2022 when it raised $222m in support of acquisitions.
Perhaps Unikmind should change its name to Unkind!"
Obviously not and you may expect this sort of behaviour from an external party attempting a more hostile takeover, but you shouldn’t expect a long term business owner to actively screw over his fellow joint business owners. It’s called being a reasonable person. He simply won’t be trusted again.
having bought into this at 2.90 in Sept 22, i feel utterly short changed over what was proposed today. Will hold and await the outcome, probably should have done my research better, having 1 large shareholder always leaves open to this sort of opportunism. what is happening here does not quire pass the 'sniff test'....!
No - but this isn't capitalism at work I'm afraid...capitalism is about fair value coming through in the end - and my estimation of fair value is way over 5 quid over a 5-year view with Kape. This is daylight robbery and even worse, I struggle to see how it is stopped. You have Slater investments with 5% (assuming they have held for a long time and may be happy to take the price and move on) and then rest of shareholding is very dispersed with small holdings amongst institutionals...not a conducive to this being rejected.
hold one guys - did you think capitalism was nice and sweet? ^^
Agree with all of these comments...yet somehow I convinced myself it was a reasonable corporate structure. Definitely did not see this coming. It's a really really insidious way to treat shareholders who have supported the business.
The low value has probably always been because institutional holders didn't 100% trust Mr Sagi given his previous. Can you blame them after today. Todays action hints that he's not a particularly good egg (simply its his business and he's trying to screw his shareholders which is disappointing after years of shareholder support and fund raises). Throwing his toys out of the pram and threatening to delist if he doesn't get his way. Hope the board and institutional holders play hard ball with him and extract as much value as possible. I personally won't be buying any more shares where Sagi is involved.
https://www.investorschronicle.co.uk/ideas/2023/02/13/a-buyout-offer-that-s-easy-to-refuse/
Fair value is 500p a share in Simon's view.
GLA
indeed...
no not blaming Sagi...only has to pursue his own interests, more the shambolic way stuff is valued in UK markets by the institutionals.
yeah disappointing premium but can't blame Ted' - he is a business man...
Now Kape needs to bid him up and holders keep ya hands sticky
Am sure Daddyaim that you are as appauled as I am by this today....utter disgrace in my opinion.
Could be looking at a year of robbings like this.
If Unikmind can't reach 75% threshold, they can't delist the stock and will either withdraw or bid higher.
Withdrawing is unlikely as their target makes Kape ridiculously cheap vs peers.
This leaves the only viable option, a higher bid.
Looking at median ev/ebitda multiple (c. 11x) this values kapes at 360p vs currently 290p c. 20%+ higher ! as other say "HODL" !!!
But if he gets to 76% and can trigger a de-list, but the other 24% of shareholders still won't sell, then how is that advantageous to him. He just ends up with 76% of a unlisted company which surely is worse than 76% of a listed one because it's harder to now mop-up the other 24%.
Am I misunderstanding something?
What if we reach an impasse? Board says min 350p say, then what? Sagi tries to buy shares in the open market and persuade institutions to sell - but would they? If he can’t get to 75% to trigger a delist (if that’s the threshold), what can he still do as majority shareholder?
It's a pretty horrible set of circumstances. Really horrible when you compare to Adept last week being bought at almost 2x. Adept had far less potential growth wise and was highly geared...
I really thought we would be looking at a takeover for Kape...but an external one which would see shareholders make 2x minimum. Even that would have been at trading multiples far lower than other transactions in the sector...so this is just a terrible position now.
I sold personally...not impossible that the board will secure a further 10/20% from Sagi...highly unlikely another offer will be put on the table as Sagi would clearly reject it given he wants to take Kape forward privately. So in my view any upside from here is limited and holding on was an opportunity cost - CentralNic in particular feels like it could be next in line imminently and plenty of others.
Interested to hear what others think will happen here. Sad day in my view...a proper destruction of shareholder value. However, not blaming Sagi; its not for him to be acting in our best interests, only his...and the UK market just simply would not ascribe a reasonable valuation to Kape.
Spot on Terry, not even a veiled threat, very unpleasant
Sell to me or be stuck with something pretty much worthless
.
I'm disappointed by the proposed deal too, it's not much of deal is it. We were at 299p last month and traded above 300p for months last year, then at the September fundraise we were told it was 'significantly oversubscribed' at 265p and now he comes with an initial offer of 265p for the whole lot, now raised to 285p. It's not really a premium in my book and hard to see much acceptance at this level. Have matters deteriorated so much in the last few weeks then? No. The offer looks too low and the Board should reject it, somewhere north of 325p should be a starting premium for Kape. ATB.
Yep - shouldn’t be allowed to own that much of a public company. I’ve sold just under half my holding above the offer price. Will keep half for the final showdown, whatever that may be. Saw the RNS headlines this morn, and was expecting to read 60-70% premium. So disappointing
Don't like this blackmail, take 285p per share or we will de-list you, pitty FCA are useless as this should be stopped.
But don't worry you will probably get a chance to buy in again in a few years on the new IPO at a greatly increased price.
Very annoyed too with an opportunistic bid for the company. The share price was 285p less than 3 weeks ago so I don't feel it is at a "premium". With regards to the takeover being a done deal does anyone know what % of shareholdings has to vote in favour of the deal - I have seen several figures ranging from 51 to 75%. I can see how a 3rd party bid can easily be rejected by Sagi but if the acceptance criteria is 75% then there is a small chance that Sagi's offer wouldn't go through. A higher bid by someone else would make him realise he would need to up his offer to get the required amount of votes. Thanks in advance for replies.
Feeling a bit peed off, as the offer price is only fractionally over what I bought in for a while back. But, that is the risk with a dominant shareholder who is also a convicted fraudster and would pimp -out his own mother for a quick buck.
Anyway, what to do? No idea really...
(i) The threat to delist is hollow I think. Where would that get Sagi as he'd still only own ~60% and it would now be much more difficult to buy-out the "rump".
(ii) Bigger knockout offer coming from third party. Highly unlikely as it would have the be a price higher than Sagi thinks he can get by re-IPOing the company a few years in future. Would need to be >>£5 I think.
(iii) Hope our "independent" directors can squeeze out a higher price. As the share price is 290p this morning this looks to be what the market expects. If it were >320p I would take it.
Anyway, Sagi will make some money but who will invest alongside him in future?