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Indeed beatroot, so if you think it is going through on the terms released this morning are you not better to sell rthm and buy tap. Almost 1:1 earlier rather than 19:16
The sp is now 1.79, if the buyback, as promised, goes ahead, at least r1 can buy at a reduced price. Coincidence?
See more upside then downside , would prefer 16/19’s of their year high then 19/16’s of ours .
Sorry I meant NOT being forced to sell.
I wouldn't be too happy about this deal if I were a TAP shareholder. TAP's SP has only recently crashed and it is a profitable company. RTHM's history is decidedly dodgy and the SP has done nothing except go down for the past 5 years. I'll just be glad when this is over and done with and I don't have to look at RTHM stinking up my screen.
My understanding is that we will end up with shares in the merged entity. So we are being forced to sell. Could be good thing for rthm shareholders longer term.
What will that mean for shareholder?
Looks like a carve up to me & if Tosca see Tap as the best chance of their realizing a profit they are likely to have been involved in the discussions ( or initiated them )-possibly together with River & Mercantile , who own 7% of Tap 7 10% of RTHM.Likely to be a done deal unless a white knight emerges
Our shares under the deal are worth 1.65.
No mention of buyback. Still going ahead?
We know the reason now , RTHM ..no change.
Tap up 7% on open.
If the deal is done will R1 share holders be able to hold onto their shares as a merged company or forced to give them up?
Tosca will want maximum value & if they accept a deal which seems poor to everyone else it will due to the fact that they recognise the merger as their best route to profit & will retain a large holding in the merged group - unless they sell out.I am sure the attention of other interested parties will be focused on this proposed deal & if RTHM are as good as they say they are there will be other bidders prepared to pay more & optimists will hope RTHM will "do an Earthport" with rival bidders queuing up to buy us for a premium.
Well judging by opening sp's the markets agree that we are being shafted. Tap up 13%, us up 2% . Nuff said.
Who voted for that?
Will we end up with shares in the nely merged entity? That may not be so bad?
Sounds like deal is done
Yes - exactly the same thought occurred to me. According to those figures and the current SP, we'd be getting shafted!
So we'd be getting less shares, 16 for 19, of a company that has a lower sp currently? Is this correct, coz that doesn't seem a good deal to me.
The combined enterprise will be split more or less 50/50 between TAP and R1 shareholders. SP of both these companies is currently seriously depressed and will skyrocket. I’m hoping to see TAP settle around 350p, and R1 around 300 before the takeover is complete...is that being too optimistic? The new company, with nearly 100 million in the bank, 700 mill revs and profitable would be easily worth a billion dollars would it not?
Tap is going to issue 16 shares for every 19 shares R1 own. That almosts doubles Tap’s shares.
Isn’t R1 share price slightly inflated though as investors thought there was going to be a share buy back and did R1 knowingly put this out if they were in discussions with TAP to get the price up from £1.50.
What did you base the 1.40 price on? Both company’s share price has suffered, Rythmn the most, it sounds like a sensible deal for both to take on the might of Google and Facebook.
Brassneck - since it's all paper it doesn't really matter what the implied value based on yesterday's close is, does it? Look at where the Tap price was in October and think how Tap investors feel. What matters, in my opinion, is how investors view the potential of the merged company and how they mark up ( or mark down) the share prices based on that potential.
So that values each R1 share at 1.40?