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All said and done, there is no premium in todays price. Not when you consider the growth trajectory and FCF
There is definitely a deal to be done here as there wouldn't be the continued extensions. Both parties are still mentioned so still interested.
I do not see the continual extensions as negative, just pretty normal, and neither side will want to spend money chasing something that looks unachievable. I have held these shares for many years after being impressed by the product and have always believed that it would eventually attract a buyer at a good price. Personally would be disappointed with anything below £1.50.
So this eye-watering outlay points towards an eventual deal ? The longer this wrangling goes on, the higher the fees and the more incentive to avoid wasting so much resource and do a deal ? Let's hope....
Agree, the rate of spend accelerates as time passes and the fees charged by the top legal and accounting firms are eye watering. Many people also forget the range of specialists that get involved, I still have a number of deal books which list the teams on each side and it is amazing how many are involved.
Equals booked Professional and advisory fees incurred on the strategic review of 0.656m by 31 Dec 23. No doubt that rate of expenditure has increased somewhat.
Chrisbish. What you say is true although I was a CFO of a business where we sold part of our business for c£250m over 20 years ago in a process contested by two parties. Our fees were £7m and those of the failed bidder over £10m which as a major quoted they had to disclose to the market. Had both of them withdrawn our hit would have been close to £8m plus a lot of time. Completion of deal took well over a year and was subject to a lot of newspaper commentary, much of which was wrong.
Franalex you make some very valid points, my experience is that it’s the potential bidders that take the brunt of the adviser fees. With two potential bidders there must be a certain amount of duplication. Diversion of management time is likely be a bigger risk to the growth of Equals going forward if this continues to drag on. Still believe any fall back in the share price presents a buying opportunity.
Suspect it is more to do with clarification of issues coming out of due diligence. I have been working on a PE transaction for 18 months that was initially scheduled to complete in first quarter last year! Has never stopped but so many issues materialise once data room is fully populated and lawyers get at it, all of which take a lot of time. It will complete but deadline after deadline has passed. My fear here is that huge amounts (millions) of adviser fees will be accruing which consume cash and if a deal falls through will be a very large bottom line hit.
Indicative offers...obviously in no rush to do a deal. Per haps they are now going to wait until next year audited accounts are released
Hmm! The annoying thing is, I do trust IST (not many CEO’s I say that about), but very frustrating.
I concur! Jeez.
Ffs 🤦♂️
Let’s hope so…. Gla
Unless it is a substantial offer I would prefer to hold and add if the price goes down. It did last month and shares recovered soon after.
I hope there is no deal and it does drop as I will be putting this years ISA allowance in to it. I’ve had this investment for two years, first getting in at 83p and I think it’s better value now. If it is purchased, sure the short term jump will feel good but I will struggle to find a uk company with such good prospects at a current year forecast PE of 22.
Yep, looks like more of the same or eqls pull the plug
Either way we drop
Some big sells today too
Worrying times
SP seems to indicate another extension. The SP also seems to be in a holding pattern and has been for weeks now
And why wait for D day again, hope it's not another extension ffs. Offer or no offer I don't really mind, well prefer a great offer!
It’s beginning to look like a sketch from Benny Hill , more alleged suitors than Katie Price has fellas.
I do hope the board have got this in hand but I’m beginning to waiver a little - GLA
Should have read if there is no bid, they should walk away.
This saga has been going on too long. If no bid is announced tomorrow then the shares are likely to fall back. I think if there is bid I think they should just walk away. Could create a great buying opportunity. Watch any activity on the shares today to provide an indicator.
Looking back it's been the morning of the deadline. Anyway let's see what the next couple of days brings.
Well I’m not expecting a deal to be announced tomorrow as appreciate the deadline is the 15th at 5pm but I suspect they will notify the markets tomorrow at 7 am like previous form.
I do hope that a deal will get done but not expecting it …