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It seems to be a low activity day with little direction this morning however I would expect more activity when US markets open in 3 or 4hours time.
“Were a buyer to pay a premium of 100%, the share price would still be materially lower than its intrinsic value, and well below where the shares were trading as recently as January 2021.”
Before the announcement £8.32 was the SP - indicating Coast Capital would be very disappointed with a takeover price of less than £17. However the takeover price (if successful) is in the bidders and the PRSM BOD's hands.
Let's not forget that the SP hit over £25 when I recall some of the management sold a percentage of their holdings. So some investors will still be under water. I only broke even yesterday at £12.
To me there are three share prices which matter:
The price of the initial bid.
The price of the final bid.
The price if there is no bid or the bid fails.
Also the eventual bidder might offer shares in addition to cash or no cash at all. Gives those underwater a chance to recoup their losses if they believe the bidder can grow this faster.
Time will tell but the 50% jump in the last week shows just how out of touch the London market is with the US.
GLA
R
Yep, onward and upward! Let's goooooo!!!!!
With the share price before any first offer imho
According to the short interest tracker, Systematica still need to buy c.970k shares. Are they ****ing mental? Do they think the price is going to drop from here?
Christ alive, if someone's gone on holiday and hasn't told anyone to keep an eye on PRSM in case it rips, they're going to have a P45 on their desk or a redundancy consultation due to hasty liquidation on their return.
Either way I'll laugh, shorting ****s.
Coast Capital believes Blue Prism is currently undervalued and it would be a mistake to agree to a takeover at the share price.
“As you are well aware, the Enterprise Value of Blue Prism PLC is currently valued at approximately three times forward revenues - an 80% to 90% discount to the company’s peers including UiPath, Appian, WorkFusion, Automation Anywhere, etc.,” the letter from Coast Capital said.
“Were a buyer to pay a premium of 100%, the share price would still be materially lower than its intrinsic value, and well below where the shares were trading as recently as January 2021.”
“Furthermore, we note that the team at Blue Prism PLC (including management and board) has built and maintained the world’s premier unattended automation software product, with an extremely valuable client base of 2,000+ large-scale enterprises,” Rasteh said.
“Even at its current worst, the company enjoys an enviable reputation as a best-in-class performer, and as a result remains a leader in its rapidly growing and very profitable industry. Now is not the time to throw in the towel!”
Let's hope for 3, 4 or 5 suitor$ )))
Bought in yesterday, missed the 40% rise but hope to see this near 2000p mark
crazy this is still over 30% down year to date.
Bear in mind that disclosures are now subject to takeover panel rules which require 1% positions to be disclosed rather than the standard 3% level.
Two suitors is good news for PI's - the more the merrier.
I think £17 is achievable - but that us just my guess with nothing to support it.
Good luck to all the PI's invested.
@joatmon, yes it's two different PE firms. They're the #4 and #10 biggest PE firms, who are competing against one another.
I think even if both bids fall through, the tactic accomplished the purpose of getting attention on the stock and getting the shares re-valued.
@joatman a good question....
RNS suggests two suitors in that it says offers not offer, and also each of the two has to put up or shut up by 28th September under the Takeover Code.
I wonder if the two are stalking horses for someone bigger, or the BoD are getting desperate to get attention in the US? Time will tell....
My question is - are the two investment companies involved in takeover talks jointly acting as partners, or are they rivals?
I agree @clairesmith! That would be an appropriate target that leaves "meat on the bone" for both sides. I think Blue Prism is worth somewhere in the 6B range. Of course, a few strategic moves have to take place to unlock that value, but if they sold somewhere around there Blue Prism investors would make a quick profit and the PE investors would triple their money over the next 3-5 years. A win/win.
On the other hand if they sell for much less than 2B, I worry that management would be making a bad deal on behalf of its shareholders - even if it is a profitable one for many who have bought over the past 3-6 months.
The company have told use straight they want to sell and 2 investment companies are stood at the door, just a matter of time before be start seeing offers, and £2B is a good target which equals £20ish a share.
Expect a bit of a buying sprey while still at a low price.
I see the short positions have started to close. JP Morgan out.
I usually use the shift key to enable caps lock as I type, however was too busy strumming the guitar as I typed thinking about how strong and virulent this board can be with their extra chromosomes.
Vestenius - :-))
Assume CS's caps lock key is missing/broken......... ;-)
Looks like there are a slew of disclosures coming out today showing some big institutional investors getting in on the party. This is going to be a fun month. Here we goooooo!!!
the beta cuck soya boys should be done selling soon, we aint got time to waste on the weak let them sink, get ready for some big buyers taking a holding position until the company sell is done
Maybe. Either way, I think he's right. I'm ok making a quick profit on this, but I think the bigger returns are in holding it for years. Let the games begin!
Rather enjoyed reading that.
MattTheBrave wins for his use of capitals letters throughout.