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Here is another excerpt from the trading update:
The Company typically structures each transaction 50% in cash and 50% in S4 Capital ordinary shares, ensuring that entrepreneurial management teams are incentivised and motivated at a one firm level. 100% of the equity is purchased to avoid complex, fragmenting earnout structures, which encourages a seamless and instant integration, avoiding operational silos and internal competition.
If we go by what this says...the company has raised 100 million in cash, so they would probably offer 100 million is shares...that’s a 200 million valuation - barely 150p in Tremor shares! But they also state they would offer 5-10x EBIDTA or 1-2x Revenues which would equate to 300million plus valuation
I can’t imagine Tosca or anyone else would accept less than 300p for these shares which equates to 400m valuation, unless they are desperate for an exit?
Safi
A couple of years ago, posters were speculating that one of S4's initial acquisitions would be rthm at around 500p, especially after their Yume takeover. The speculation was that Yume was US listed prior to rthm takeover and rthm continued their SEC filings, so it followed that S4 would bid for them.
I'd wait to see what they say, otherwise, like last time it could be a false dawn...
IF there is an offer, it's likely to be around 25-30% above the current sp, so around 180p-200p...
To be fair it is a US business which happens to have a Tel Aviv HQ. Management are in New York. It does tie in with shareholder and management behaviour and accelerated buyback, chairman departure and new CFO timing.
I noticed that too...I tend to follow Tremors competitors
From the RNS:
S4Capital entered 2020 with a strong deal pipeline and has already completed mergers with Circus Marketing (March 2020) and Digodat (July 2020) and signed a merger with Lens10 (June 2020). The Company continues to have a strong deal pipeline with three potential deals currently in due diligence: one in eCommerce around a major platform in the United States which is expected to be announced imminently, one in Digital Content in Germany and one in Analytics and Measurement in the United Kingdom. There are also several additional potential deals at a letter of intent negotiation stage and various early-stage discussions. The Board believes that despite the economic headwinds caused by covid-19, S4Capital, given its continued growth, is in a unique position to accelerate its acquisition strategy of merging with high-quality, complementary businesses, increasing its scale and capabilities and further stimulating growth.
It’s incredible how aggressive this growth by acquisition strategy is. But I’m skeptical Tremor is a target...as it’s actually larger than S4 and itself composed of several smaller entities, and is not based in the US.
Havent we seen the likes of S4 before in Blinkx and Quindell? S4 seems like a massive pump and dump scheme...no doubt the shares will continue to skyrocket, but I really don’t believe they can take on so many new acquisitions and integrate them effectively. As soon as the deals dry up I envisage a dramatic writedown. I don’t believe Sorrell is quite the genius he’s made out to be...but he does know how to build hype
S4 RNS......out....bid imminent?
investing/speculating affects your life,if your shares are doing well,,deep down you feel great and the opposite when they are tanking,,at 66 i shouldnt be here i should be in Cash,Gold,Bonds and Property,,My big decision will come if this rises to 232p which is my average,,Should i stay or should i go,,as the Clash would say