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Started: NotBot, 5 May 2023 21:16
Last post: QuinVestor, 11 May 2023 22:38
Hmm. It doesn't actually say much, beyond 'we've bought some stuff dirt cheap, but we're not really sure what to do now. I'm sure it will be good though". At least MF's business model was better than that.
What's in it for customers?
What are the plans for integrating internal systems and processes? (the mess over HP systems and process integration is pretty much what brought MF down)
FYI here's an article I found discussing how Opentext is integrating Microfocus, perhaps of interest to anyone still visiting this chatroom,
https://www.theregister.com/2023/05/04/opentext_micro_focus_acquisition/
Started: ripley94, 26 Aug 2022 10:26
Last post: ripley94, 15 Feb 2023 16:25
( W ) Paid out yesterday lucky I sold on ( D ) 13th and the larger amount 30th January and I was not charged for the second part of GTC order 17 days after the small first execution .
Had some funds one month early second lot two weeks early .
528.60 - 610.00 . Massive spread no market for them .
Logged on for 8am ( W ) will not give live deal .
Your order can not be completed automatically
The rest of the GTC order executed 5 mins after close , it appears I have not been charged a second dealing charge the first part execution seems to have covered it apparently .
Looks like I have funds 14 days early .
Post 26/8/2022 below.... Micro Focus' shareholders will receive 532 .
Placed a GTC order for the 532p two days ago surprised to see a small amount executed at open .
Maybe I will not be charged dealing if more go through before mid Feb .
Started: Furry-ears, 31 Jan 2023 13:29
Last post: Furry-ears, 31 Jan 2023 13:29
To all invested here and very nice to have made some good money here and hope you all did well.
Shame it wasn't a bigger offer but still a very nice earner.
Wishing all invested here a very happy time with your future investments.
All the best.
Started: QuinVestor, 31 Jan 2023 11:12
Last post: QuinVestor, 31 Jan 2023 11:43
Confirmed by RNS (that's completion of the takeover, rather than my summary of value destruction):
https://www.lse.co.uk/rns/MCRO/scheme-of-arrangement-becomes-effective-y2uiyr995ppwdy3.html
Well the share is showing as suspended at the agreed takeover price of £5.32. I guess the takeover has been completed. So, if I've got my numbers right, in round $bn:
Management had a $15bn market cap company.
They sold off the SUSE business and returned $2bn to shareholders.
They turned the remains into a $1bn company.
They doubled that to $2bn of value only by agreeing to go away and let someone else take over.
Fair summary?
Last post: selecta6, 23 Dec 2022 07:36
Nice one, opulentia.
Not long to wait now.
Gentle SP movement up over next 6 weeks.
Then £5.32 pay-out.
Micro Focus, it was a very nice ride, good luck with your new owners,
GLA LTH
Started: Shed13C, 22 Nov 2022 10:32
Last post: Becomingpoor, 22 Nov 2022 15:07
A but worrying although probably think can make more than 3% elsewhere so why wait.
Think the SP would have dropped further if any issues
JPM offloading a chunk...... I hope they don't know something. I was kind of settled waiting this out until next year. Arrrgh!
Missed the TS as well. Looks like MF have still not found the bottom of the revenue number. I suspect it might be ~$2 billion. If you could get costs in line with this and maintain margin/FCF you could have a decent wee business. No doubt this is what is going through OpenText's minds when they made the bid. I would love to see an alternative bid come in from a team who see MF as a successful, growing independent entity. Personally, I think it is sad that another UK tech company is being let go so easily by our government.
Started: QuinVestor, 17 Nov 2022 15:01
Last post: QuinVestor, 20 Nov 2022 21:54
Thank you Strathy. I'd missed the Trading Update RNS in the waves of holdings statements that now deluge my inbox. Sales down 6% (after Digital Safe and Russia excluded) is obviously disappointing. However free cash flow is still positive and even better than expectations. The cynic in me wonders if there might have been a less-than-normal focus on closing sales before the year end, as the Exec may have little incentive for that now ('close the deal, take the undeserved bonus, run, hide' thinking?). I suppose the only hope now is that a sharp PE investor outfit spots the easy win and makes a less derisory offer.
Released a trading update 3 days ago. Was hopeless! Thankfully an offer is in which has prevented the market hammering the price again. Headline was revenue down 14% yoy though 7% when you take out digital safe. I’m afraid your correct concerning reward for failure. Great potential with the correct people steering the business. I held on after the bid for about 6 weeks hoping for a counter. Seeing the revenue numbers, I can understand why the board recommended to accept the bid so readily.
Anyone know if we're expecting a trading statement this year? In the absence of any communication, it's hard to know if the Exec have given up either on turning the business around or on the possibility of getting a better offer. My presumption is that they have largely given up on both and are just counting down the days to being handsomely rewarded for their failure.
Started: Shed13C, 18 Sep 2022 13:13
Last post: Becomingpoor, 24 Oct 2022 16:58
Yes - it is the opportunity cost though.
There are some low priced companies e.g. GSK, VOD - could you make more than 2.7% in those in next 4 months. Will get divis from both of not much short of 2% plus chance for capital appreciation.
That is what I am trying to work out plus always chance Opentext pull out and you could lose c50% overnight.
Anyway - I have been trying to work out what to do but have stu payed put here - I do reckon selling and plonking in 4 or 5 other shares may be best and let risky
I thought it'd be interesting to see what effective interest rate you get by investing in (or holding on to) MCRO at the moment. I make some assumptions:
* the deal doesn't fall through
* for easy calculation I'm guessing the deal completes mid 2023Q1, specifically 4 months from now (mid February)
* the share price is about 518p (this seems to be a typical pre-close price on Friday, I'm ignoring some high after-the-close prices)
At completion each share is bought at 532p, so a difference of 14p in 4 months. That's 2.7% in that time, equivalent to 8.1% per annum (back-of-an-envelope calculation multiplying by 3, I know compound interest is a bit more complex than that but the figure should be about right). That seems like a better bet than the building society, assuming you agree that the deal is not going to be derailed, completes by the time above, and the bonus item is that there's still the chance that a late higher offer could come in.
Always do your own research (DYOR) etc
18th of October is General and Court meeting. Should be finalised Q1 2023.
Any progress or snippets of info on the agreed takeover in terms of voting in favour of or opposite and any future dividends?
It’s 532
Started: shepdave, 18 Sep 2022 13:29
Last post: shepdave, 18 Sep 2022 13:29
Perhaps a positive message regarding AWS growth whenever it might be due ??? could be the trigger.
Started: MarkBellUK, 6 Sep 2022 14:12
Last post: shepdave, 17 Sep 2022 15:29
My thinking too, the current deal does seem quite generous to the buyer.
I'm with NotBot on this one. I think the risk of losing out from hanging on for a few months is outweighed by the possibility of a counter-bid.
RG
@CR888: Well I'm currently sitting tight. It seems extremely unlikely that the deal will fall through so I'm discounting/ignoring that risk; I think there is a genuine and significant chance of another bidder which would give the takeover price a significant boost so I'm holding out for that. If that doesn't occur then I expect the price will gradually drift upwards towards the offer price as we approach the [yet to be announced] effective date in 2023Q1. I look back on other takeovers (Morrisons is fresh in my mind) where other bidders don't necessarily place counter-bids straightaway, instead biding their time until close to last-chance-to-bid deadlines, and also to give themselves more time to review the target company, its existing bidder(s) and their own prospects of a successful bid (or upping the takeover price for their winning competitor)
Well, here's the thing.... On the day of the RNS I was at Spa Francorchamps watching Practice....Completely missed the news lol. (A drink or several , 'may', have been taken.....). Just came by to see my battered portfolio and thought it was a mistake!
SO if anyone is still here, any belief that it may be waiting a little longer just in case a counter offer comes in?
Yep, taken money and re-invested
Last post: muzza2011, 14 Sep 2022 21:42
Should hear more by ~23rd.
"It is expected that the Scheme Document, containing further information about the Acquisition and notices of the Court Meeting and the General Meeting, together with the Forms of Proxy, will be provided to Micro Focus Shareholders as soon as practicable and in any event within 28 days of this Announcement (unless a later date is agreed between OpenText, Micro Focus and the Panel). An expected timetable of principal events relating to the Acquisition will be included in the Scheme Document.
The Acquisition is expected to complete during the first quarter of 2023, subject to the satisfaction (or, where applicable, waiver) of the Conditions set out in Appendix 1 to this Announcement."
From the RNS.
What is the schedule?
To diversify
To shares like Dark and Bp
Started: Shed13C, 30 Aug 2022 17:36
Last post: MarkBellUK, 31 Aug 2022 08:32
See "Opening Position and Dealing Disclosure Requirements of the Code"
Standard practicenothing to worry about
Glad to get out not as burnt as it was looking.
Declining revenue, poor management - I am guessing most(incl. Me) just are thankful that it can get back to »500
A lot of investors with 1%+ stakes are submitting their 8.3 forms via the MF website. If I am reading this right, several of them have paid in excess of the offer price for their shares. This would seem to suggest they are looking at a significant loss? Do you think this will make them less likely to vote in favor or will they just be glad to get out?
Started: MarkBellUK, 30 Aug 2022 10:41
Last post: MarkBellUK, 30 Aug 2022 10:41
* Micro focus : Citigroup raises price target to 530p from 365p *
Wow they are that good they coincidentally manage derive a figure very close to the offer, through their own calculations, at the same time an offer comes in ;)
Restores my faith in brokers ....
Started: bountyhunter007, 27 Aug 2022 23:07
Last post: opulentia, 29 Aug 2022 12:51
A very nice surprise, ill be happy to take the 530, , though thought £6 would have been a secured bid!!
GLA LTH
Maybe another bid … but unlikely given Micro history and debts … fingers crossed for an improved bid …
Look at Darktrace .. a bid might come next week or following week , could see a nice jump :)
Maybe consider switching 20 per cent into Dark , hedge your bets … :)
Bought back 5000 shares just couple of days ago and one fine morning this RNS landed... It seems overnight big news is only way I can make big gains nowadays.. I seem to have lost patience... Can't even hold shares for 1 or 2 week once they start move.... Need to refresh my mind and rebuild habit of being little patient once again.... There could be some other bid from PE who could be interested in dismantling MCRO however chances are low considering debt....good luck all who made some money with this roller coaster...
Last post: OracleofOldham, 29 Aug 2022 04:36
Maybe AO or THG as they've fallen so much, I know THG have refused a few offers (so they've said)
BT if the Tories are asleep at the wheel still
Network international dark horse, growing company , fcf, share buyback, profitable, main markets N Africa, Saudi, Middle East, very low daily volume as not many PIs invest, majority of the trades are ATs , its been hugely frustrating to hold as the SP is so easily driven down by small AT sells.
Be interested if anyone has on thoughts on it.
Darktrace? Had it been a member of FTSE100 before? in debt?
Good company Paypoint unlikely to receive bid as very tight knit company i think..............
Last post: Antropica, 27 Aug 2022 20:29
Just had a look to Opentext financials... not sure if they are buying MCRO with debt, shares or a mix. They already have $4.6 billion debt...adding this zombie to their balance sheet doesn't paint a pretty picture either....
Just more proof of how our markets and stocks are so undervalued.
Agree 550 p , so offer should be at least 30 per cent higher , say 710 p or more … certain 530 p too low , but the question is how will any shareholder vote go ?
CR888 - sorry you are wrong - MCRO has exceeded a sp of 550p within the last two years. 532p is cheap and a second or third bidder is not beyond the realms of possibilities, 6-700p would be a better reflection of value at this time.
Maybe sell part of your holdings in Micro , 30 per cent to 50 per cent and use the proceeds to buy Dark ….
Darks highest 2 year price 1000 p , currently before bid 520 p
Whereas Micro is already over highest 2 year price .. spread your bets over a few buyout companies maybe :)
Anything can happen ..
Started: Hufc1908, 27 Aug 2022 12:46
Last post: Hufc1908, 27 Aug 2022 12:46
What a way to end the week for holders, with OpenText Corporation having agreed to take over British software company Micro Focus International PLC, (LSE: MCRO), in a deal worth £5.1bn including debt.
Micro Focus shareholders will be entitled to 532p per share under the terms of the agreement. This is 98% more than the closing price of Micro Focus as of 24 Aug. Its market capitalization is £1.8bn.
https://www.share-talk.com/share-talk-weekly-small-cap-movers-shakers-saturday-27th-august-2022/
Started: mickymix, 26 Aug 2022 11:48
Last post: CR888, 27 Aug 2022 05:38
Relying on a new bidder risky , the current offer could be the only one , and already over last 2 years trading price even above tech bubble price
Having said that a premium to last 2 years price would be better , say 600 to 700 p fairer … sadly I own no shares now of Micro, and would switch to Dark if I did
Good luck for higher price if you decide to wait
Can you see shareholders turning down a significantly higher offer? I can't. Plenty of time for another player to outbid Opentext. I'm in agreement with Mark Bell, genuinely expecting at least 2 other parties to make offers comfortably over £6. Could reach £10 and would still be a bargain in the right hands.
Isn’t the deal agreed with an agreement exchanged? If so it’s all about shareholder approval. For it to fall over another far higher bid would have to come in so the shareholders turned the current offer down. Will shareholders turn this down at 5.32? Does anyone know when we have to approve by?
Nice if it comes but happy with this offer. Tempted to sell and distribute across multiple depressed companies.
Not had much confidence with current management so happy to take cash and get value elsewhere. Good timing with current t market depressed
Concur with that Sir. Comfortably over £6, heading towards the £10 mark, depending on who wants it and how much it's worth to them. I see the Opentext offer as an opening gambit.
Started: CR888, 26 Aug 2022 13:58
Last post: CR888, 27 Aug 2022 05:34
Kape tech is a good company , CCC too
Times says hold Dark at 520 p , the upside conservatively is 30 per cent to 65 per cent upside if offer comes in next 2 weeks , Sell Micro but Dark could be a great strategy :)
If you really want to take a punt CINE is ripe for it.
On the flip side, say you sell your MCRO stock and invest in DARK right now. Then, Thoma Bravo walks out without making an offer. Darktrace will retract from curent levels to the old 300p (if not less). And your investment will shrink accordinhly.
I am invested in both and I am not going to touch them, set aside putting all my eggs in the same basket (and Dark is indeed the wrong one in this case, as no sound offer has been made). I agree it is very likely that other bidders follow suit and price raises, but that could happen in both cases.
From my perspective, and where I am most likely to put my money after September 8, Kape Technologies and NCC Group are as juicy as MCRO and Dark for a takeover, and thats my strategy.
Dark could jump up to 50 to 60 per cent too if offer comes
Microfocus shareholders consider selling and buy Dark shares so you get 2 buyouts :)
Started: Shed13C, 26 Aug 2022 19:49
Last post: OracleofOldham, 26 Aug 2022 22:05
Yeah I am still underwater and bet many many are too.
Have to look at it that at least can put the money I get back to better use esp with stocks well down at moment but still maybe there'll be a rival as this is indeed very low ball but just like blue robot and plenty other UK companies that get snapped up last few years
Whilst it is great to see someone else see the value in Micro Focus, this bid grossly undervalues the company. The board of MF has been atrocious, unable to stabilise revenue, find growth opportunities or fix the internal plumbing in a timely manner.
In addition, the constant negative reporting has decimated the SP over the last few years. MCRO has tremendous potential and upside and this could be achieved with a new leadership team. The sale of the company will simply end up destroying more value and no doubt many staff at both companies will pay for this with their jobs.
It is infuriating to see these numpties getting rewarded to the tune of millions for what is basically abject failure.
I for one will be voting against this offer although fear it will go through anyway. Many MF shares are owned by VC etc. and no doubt they will vote for the sale. Hopefully, another company Enterprise company out there will swoop in and make an offer which better reflects the opportunities and assets on offer.
With the strength of the USD against the GBP this sort of opportunistic swoop was inevitable.
Started: Frankseluk2, 26 Aug 2022 19:01
Last post: Frankseluk2, 26 Aug 2022 19:01
Reduced both holdings in the past month (s).
Happy buy kicking myself.
Other holding quite large , sold none of of those....
Started: Archy147, 26 Aug 2022 14:07
Last post: inflationbuster, 26 Aug 2022 14:31
Yeah best not trade early in the morning ??
Yes looks like the sellers are drying up...Shares mag has is down at a done deal @ 532..
- UK’s 6th largest tech company agrees $6 billion Canadian takeover
- Shareholders call time on five years of share price declines
- Latest in lengthening list of UK tech exits despite Government pledges
Enterprise software firm Micro Focus (MCRO) has agreed to be taken over by Canadian company Open Text (OTEX:NASDAQ) in a $6 billion cash deal.
Ontario-based company is offering 532p per Micro Focus share, a 99% premium to Thursday’s closing price.
After five years of share price declines, Micro Focus shareholders can be forgiven for snapping Open Text’s hand off. The 2017 merger with HP Enterprise’s software arm was a massive error in judgement and has cost shareholders billions in lost equity value, and the company nearly 50 years of independence.
As the UK’s sixth largest software company, losing Micro Focus is another blow to the UK’s shrinking large cap tech space.
Interesting the price has been drifting up during the day. I think the MMs underestimated the resolve of holders to hold on to their shares so the original discount of 3-4% from the offer price is not tempting many sells!
Started: Furry-ears, 26 Aug 2022 14:29
Last post: Furry-ears, 26 Aug 2022 14:29
To all that held and ignored the derampers.
Hopefully everyone made good money here and we maybe get an even better offer.
Atb.
Started: AIMOilking, 23 Aug 2022 13:37
Last post: Bobsto12, 26 Aug 2022 10:57
These are irrevocable undertakings by shareholders to sell. Hardly surprising. What if opentext find a reason to walk away? given mfs tecent history of failures I think caution is helpful.
Please read the RNS
"Irrevocable undertaking
· In addition to the irrevocable undertakings received from Micro Focus Directors described above, OpenText has received an irrevocable undertaking to vote in favour (or procure a vote in favour) of the Scheme at the Court Meeting and the Resolutions to be proposed at the General Meeting from Dodge & Cox in respect of, in aggregate, 54,654,085 Micro Focus Shares (including 31,090,071 Micro Focus Shares represented by Micro Focus ADSs), representing approximately 16.27 per cent. of the issued share capital of Micro Focus as at 24 August 2022, being the last Business Day before the date of this Announcement.
· Therefore, in total, OpenText has received irrevocable undertakings to vote in favour (or procure a vote in favour) of the Scheme at the Court Meeting and the Resolutions to be proposed at the General Meeting in respect of 55,837,463 Micro Focus Shares (including 31,090,071 Micro Focus Shares represented by Micro Focus ADSs), representing approximately 16.62 per cent. of the issued share capital of Micro Focus as at 24 August 2022, being the last Business Day before the date of this Announcement."
ONLY WAY THIS FAILS IS IF SHAREHOLDERS VOTE AGAINST OR HIGHER BID COMES IN
Bids do sometimes fall through. Given Micro Focus recent history...who knows. Just saying.
Just watch the counter of the number of trades going through - mesmerising!
Looks like they listened to my Tuesday post - whilst this is the best day ever for me - still think the sp is undervalued and now that MCRO is in play, perhaps we'll see another bidder come forward? Some decent results and confirmation of revenue growth would still be helpful in this situation.