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From ADVFN
Rule 2.8 of the Takeover Code provides that a person who makes a statement that they do not intend to make a bid for a company will be bound by that statement and precluded from bidding for six months, (although there are certain provisions to allow them to do so).
FleetCor, now renamed Corpay, announced their intention to not bid for Equals on 3 November 2023 which means they could re-enter with a bid in a few days on 3 May 2024, i.e. this Friday (or anytime thereafter).
The aforementioned 'certain provisions' is a very low bar to overcome and in reality Corpay could have made an offer anytime over the last six months. The fact they have not done so suggests they really have no interest in Equals, unless of course the yet-to-be announced bids are low ball offers in which case they may take an interest.
However... These following links come from Corpay's/FleetCor 'Newsroom' website
hTTps://www.corpay.com/corporate-newsroom?page=2&limit=10&years=&categories=&search=
18 March 2024
hTTps://fleetcor.gcs-web.com/static-files/55d9f576-40c4-459a-a1e0-aec5e6aa9bad
'FLEETCOR Technologies [NYSE:FLT]...is targeting buys in the B2B cross-border payments space and finds especially attractive founder-controlled firms that have reached a certain level of maturity or sponsor-controlled assets that have been held for five to six years, said Mark Frey, group president of
Corpay Cross-Border Solutions, a division of FLEETCOR.'
15 March 2024:
hTTps://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/fleetcor-says-bigger-is-better-when-it-comes-to-corporate-payments-m-a-80843302
'Fleetcor Technologies Inc. will pursue large acquisitions to help build its three core payments businesses, which it decided to keep together after conducting an extensive strategic review, said Steve Greene, the company's executive vice president of corporate development and strategy.
A priority in its M&A strategy is to accelerate the growth in corporate payments, Greene said. Fleetcor has solutions automating the workflow around how companies handle account payables (AP), including payment processing, so it is interested in high growth, profitable companies in AP automation. Payments companies that serve corporates' needs in cross-border payments are also of interest, he added.
Fleetcor has over $1.3 billion in capital to deploy for accretive M&A
Fleetcor would like to keep the cash flow leverage ratio below 3x, and could afford transactions in low single-digit billions without needing to issue new equity, Greene said.'
18 March 2024
hxxps://fleetcor.gcs-web.com/static-files/55d9f576-40c4-459a-a1e0-aec5e6aa9bad
'The company will focus acquisitions across the board on existing geographies of the US, Brazil, the UK
and mainland Europe, looking to penetrate “deeper, not wider,” Greene said.'
So it appears Corpay has had a recent strategic review and are now looking seriously at M&A activity. It appears Equa
We will have to wait and see. I do think the tech platform is a differentiator though when it comes to value and the platform is driving a growing proportion of new growth
Ur right Zebbo. I'm only pulling ur chain. I feel guilty for winding u up. I haven't got a clue. I'm just concerned that it’s taken so long. If there was a decent bid it would be done by now. I'm coming up with those figures just on the basis the UK firm seems small fry and I presume they have had to go and find the money and MB have deeper pockets so I presume they might have come in higher but as it’s been so long they surely haven't put in a 170p otherwise it would be done. I think these were 105p when the news got announced. So 130-140p makes sense to me. I presuming the major holders Schroders, Ameriprise etc want out because otherwise why has it been put up for sale? You can’t sell those sized positions in the mkt without doing some damage. Doesn't seem like anyone paying 50-60% premiums for these payment firms so that's why I'm ruling out 160p and above. As I’ve said before, putting yourself up for sale is a lot different than someone coming in for you. This thing has been going on for 6 1/2 months. Clearly people are interested but surely and this is just my opinion they must be worlds apart on price. Shift4 in the US received bids wayyy lower than what people were expecting. Just my view and I’ve been wrong plenty of times in the past so what do I know
Zak talks Kak.......they ain't had any bids, only indicative offers :-)
Just a guess ;-)
Zak - is this a statement of known fact or a total guess? If the former you are an insider and should not be making others insiders, if the latter you are just as clueless as everyone else the difference being that others don’t posts opinion as facts. Best to ignore you I think.
Zebbo, promise me you'll say sorry when this comes out.
Anything above 140p this deal will get done coz the major holders will say yes. Anything less then I recon it doesn't happen. Its not a premium from the current share price. It will be a % premium from when they first said they were willing to sell up so on that basis 150p would be a 40% premium. U are gonna be very disappointed on the actual takeout
Best bid they have had is 135p from MD. The other is 132p. I recon 150p MAX. If they had received 160, 170 this would have been tied up ages ago.
As Ive said before Zak knows Jak
Good 2 page article by Bearbull who suggests 200p should be minimum takeout price.
Thanks. Would be great to see 200p plus. Maybe some more clarity on the companies future in may with the AGM would be nice. Perhaps not many more extensions left to go before they decide enough is enough. I agree valuation dosent really make sense based on growth.
Lifted from the ADVFN forums board (all credit to users there 'Mr Stephens' and 'carcosa'):
"Summarising the IC article:
The article examines the puzzling situation surrounding Equals Group, a fast-growing payments company that has been exploring a potential sale since October 2023. Despite its excellent technology, strong customer relationships, multiple revenue streams, and a massive total addressable market, Equals' shares have traded at a lowly valuation.
In October, news leaked that Equals had instructed its broker to gauge interest from potential buyers, prompting it to disclose that private equity firms Madison Dearborn and a consortium of Embedded Finance/TowerBrook Capital were considering bids. This kicked off a "put up or shut up" bid period under UK takeover rules.
However, over six months later, neither party has tabled a firm cash offer. The bid deadlines have been repeatedly extended, with the companies citing a need for further due diligence time. Equals itself has acknowledged the protracted process needs to reach a conclusion soon.
The article raises questions about why Equals is so intent on pursuing an outright sale. Its messaging has been muddled - suggesting a sale may maximize shareholder value, but also touting share buybacks to correct the undervaluation. The board has not clearly articulated what a fair takeover premium would be.
There are doubts about whether a bidding war will even materialize after such a drawn-out process. The low absolute and relative valuations of UK equities currently provide little incentive for bidders to pay up.
The article contrasts Equals' low valuation multiples to that of peer Alpha Group, despite their similar growth profiles. It argues that unless a formal bid tops 200p per share, representing a 50%+ premium, shareholders should demand answers from the board on why they are depriving investors of benefiting from Equals' strong growth prospects independently.
With the AGM coming in May, the article posits the board must soon bring clarity - either a compelling takeover offer or an acknowledgment they are remaining independent and outlining a plan to capitalize on the company's growth momentum and boost the undervalued share price themselves.
In summary, the piece critically analyses the opaque takeover process at Equals, questioning the board's intentions and arguing they must provide a clear path forward that maximizes value for shareholders, whether through a sale with a significant premium or articulating a plan to unlock value on a standalone basis.
It also suggests the bid price has to be 200+p and its more than likely a takeover will actually occur."
Is that not nuts.. it’s almost £1.30 anyway. Thought bids were usually +20% plus on current
????
Best bid they have had so far is 135p....ur dreaming for 170p
Im convinced the SP would be higher if TO was off the table. Especially after the results we just posted.....
I so wish LSE could do some gifs -This is a slow grind and I will keep the faith as they say…
Come on equals the market is moving
I believe a possible number for company ha to be £1.70 minimum
I see RNS about dividend today amongst the usual 8.3 and 8.5 forms.
Equals Group PLC (AIM:EQLS), the fintech payments group focused on the Enterprise and SME marketplace, announces the relevant dates for the proposed final dividend of 1.0 pence per share announced in the final results published on 16 April 2024 ('Final Dividend'). The Final Dividend will be payable to shareholders on the register as at 7 June 2024, subject to shareholder approval at the Company's Annual General Meeting on 21 May 2024. The associated ex-dividend date will be 6 June 2024 with a payment date of 28 June 2024.
Impressive fundamental, shown on the lse. Webpage, seem to indicate that an offer for the company, would have to be very expensive from the offering party. Equals, is a company going places, with such a positive financial business. The small rise today and current price equaling the open price, although decent volume, implies sp, hesitation, so from a technical chart view, if some kind of retracement , previous highs at 126 and 128, might be attractive place, to add to positions, in equity.
Would be nice!
Ups the ante on any offer the more it rises before PUSU close.
Heading up to £1.50 this week
IST and the board don’t seem the type to be leaky but great to see new highs.
Starting to head up now. Hopefully close above 130p. Up on a down day for the Markets too is nice
Sorry zebbo....just saw you posted first !