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Not sure what’s going on at corporate/ takeover level but a couple of fairly big purchases today. Sp firming up again
RNSs show three SAA directors sold off shares yesterday
Thanks @chrisneo for your kind words
Correction 1 * ‘I’ not ‘a’. Correction 2 ‘offer’ not ‘office’ I shall have start drinking less beer!!! Best wishes. Nice article
Led Zep , a totally agree with you. A great summary. Accurate , succinct and pertinent. I don’t believe that VM will put us on that ‘ stairway to heaven’ . Let’s see a firm cash office and a plan to take us forward and what they will concretely offer, rather than as I said before ‘ smoke and mirrors’. Nice one mate . Informative
https://masterinvestor.co.uk/equities/small-cap-comment-on-saa-snws-and-acrl/
I feel that ADVT will have to increase their offer substantially if they hope to succeed with their bid. But before they do that, they will have to ensure that they have the majority of the SAA board in agreement with their proposal.
It’s complex of course, as it always is, but if VM thinks that her senior management experience with Tech or IT companies has any correlation with senior management within the advertising business, she needs to think again. SAA’s key clients have selected the company as much for the executives that run their accounts, and the creatives that produce the work, as they have for the pedigree of the Saatchi brand. None of them will have signed long term let alone permanent contracts with SAA, and most contracts will stipulate that a change in key personnel (names will be named) will trigger the possibility of an account review. Terms offered to the SAA Directors will have to be extremely generous, just for starters.
Not that anyone reading this will necessarily believe me, but I spent nearly 20 years in the advertising industry, hence my post. I also hold shares in ADVT, so I find myself somewhat conflicted - although tbh I invested in THAT company because I expected their investments to be within her area of expertise rather than advertising. My investment in SAA was based on a recovery play from my entry point at 125p following the accounting debacle and the departure of board directors responsible for it.
The sp reflects the strength of the’ first offer’. It’s rare that the ‘first offer’ is accepted. It’s just a citing shot. We all hope that an improved ‘ offer’ will come. This should clearly show an uptick in sp. ‘ katstrangler’ , your comments make sense particularly those pertaining to the board being outmanoeuvred. It would be a sad day if they accept token positions or share options within the proposed new structure/ company. I hope they show integrity, tenacity and true grit to protect the interests of our company and its shareholders . Clearly VM is no messianic angel
Agreed - the future looks bright for SAA, especially judging by recent results.
The question that those who are prepared to hold for the longer term have to ask themselves is: is the share price going to appreciate more significantly in the months and years ahead with VM or with the current board?
However the proposed merger plays out, the SAA share price should continue appreciating from here.
As is frequently the way with negotiations, an improved offer is likely in the days ahead. The initial commitment of £24 million at a price of 200p shows the level VM is prepared to deal at.
The move has likely been months in the planning. VM has been on the board since March last year and will have spoken to the largest shareholders to gauge their opinion on her proposal. If she didn't have their approval then she wouldn't have bought nearly 10% of the company at 200p. So even if the SAA directors aren't keen, it's likely that the largest shareholders are.
Whether or not it's a good deal for SAA shareholders will depend on their time horizon and belief in VM and her team's capabilities. Those with a short time horizon might feel frustrated that ADVT isn't bidding 250p and be disappointed with the initial proposed merger terms. But those prepared to take a longer term view and who have done some research into VM's history might entertain the possibility of much stronger growth via optimisation and acquisition over time. VM has certainly shown herself more than capable of doing this in the past having generated 10 baggers with Computer Software Group and Advanced Computer Software.
I was expecting a better offer also, it is a low ball considering upgraded guidance twice and the sp had already touched £1.80 before any talk of a takeover so it seems destined to go into the £2s just on it’s on merits, ( I thought they would bid for a private company when I first invested)
The business is doing fine tho seems to be improving all the time, kats that’s basically saying it’s peaked with no upside?
You have two lots of improved results to come through
The business is obviously growing and do you think they would be trying to buy you out if they didn’t see growth? Short term might see abit of pain while this plays out but long term the future looks bright imo
i suspect that the results are irrelevant as most holders would sell into any spike. it seems like the BoD have been outmanoeuvred. they could probably get pulled around by offering them specious jobs for 12months with chunky shares in the new company as bonuses.
Surprised to see such a weak offering look so strong. Got out today as I can't see this going higher permanently.
ADVT are offering a poor, paper only, takeover. A cash offer from them is not on the cards. Cash would only come from another potential bidder. ADVT can command about 25% of the votes needed through their own and Vin Murria's holdings. They will have possibly hoovered up another 10% or so in the last two days as PIs get out. So 35% is most of the way there. Institutional holders may back Ms Murria, and if so this is a done deal. The SAA board say this undervalues the company, and I agree. ADVT said after hours they want to discuss the terms. Negotiation by RNS is not a good sign. ADVT will try to schmooze the SAA board around to their way of thinking. There's a good chance they could be successful, but the SAA board should simply reject this out of hand. If they do ADVT and Ms Murria will off load their shares, and the price will tumble as a result. Whatever happens we are knackered in the short term, and most probably in the longer term too.
If th
https://www.ft.com/content/c756b59f-a2e5-4772-84e6-0b751372f31f
Interesting view. Chaos to come.
There’s a saying ‘ she wants champagne goods for Micky mouse money’.
We know that £2 is the minimum now with the acquisition of a near 10% stake at that price. We know that VM bought a truckload at 40p. To be honest she wants Saatchi on the cheap. The imminent results will show the business is in great shape. Many will trust VM. Personally I trust £ notes. Let’s have a firm cash offer on the table and less smoke and mirrors
Agreed. We do need to know the full year results though, I’m sure they are going to be very good so could be back at £2 when they come out.
ADVT are offering us 1.87 shares for 1. Hideous dilution. SAA RNS at 1500 states "It is not clear to the Independent Directors how shareholders and other stakeholders would benefit from ownership dilution and a change in board leadership of the Company." I agree. However Murria is known not as a true IT person, but as a business person, who buys companies, combines them, and then flogs them on at a profit. Not happy, but holding.
i can see this back at 170 or lower on this news...
When the merger is stock for stock, the acquiring company proposes payment of a certain number of its equity shares to the target firm in exchange for all of the target company's shares. Provided the target company accepts the offer (which includes a specified conversion ratio), the acquiring company issues certificates to the target firm's shareholders, entitling them to trade in their current shares for rights to acquire a pro-rata number of the acquiring firm's shares. The acquiring firm issues new shares (adding to its total number of shares outstanding) to provide shares for all the target firm's converted shares.
This action, of course, causes the dilution of the current shareholders' equity, since there are now more total shares outstanding for the same company. However, at the same time, the acquiring company obtains all of the target firm's assets and liabilities, thus effectively neutralizing the effects of the dilution. Should the merger prove beneficial and provide sufficient synergy, the current shareholders will gain in the long run from the additional appreciation provided by the target company's assets.
We don’t even know what the terms are yet, if it’s completed you will have 100 m in the bank for bolt on acquisitions
Like x said just trust the management her other companies x10 one even x60
She knows what’s she’s doing, just keep the faith and let it play out
Even if we are diluted the share price will flourish if management have got it right….patience
Nice opportunity to get in on the pullback this morning.
ADVT just bought £24 million worth at £2 and see significant upside from there. The recent trading statements show trading is materially ahead, so there is clear momentum in the business. And the share price has just pulled back from a new yearly high.
Follow the money.
Worth checking out Vin Murria's history.
She generated significant value for her last 2 LSE ventures - both did a 10x. She plans to employ the same strategy here.
Agreed. A poor outcome for us. Dilution in exchange for a new board. However, more dynamic management could be a blessing in the longer term.