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The beauty of this period falling under the UK takeover code is that we will now get opening position and daily dealing disclosures from all shareholders holding more than 1%. These will include short positions as well as long. So a chance to see who really owns shares down to a much lower level and on a more timely basis than we normally see through the TR-1 process.
Any deal will be dependent on Tosca’s agreement. Given their average purchase price is, I believe, somewhere between £2.50 and £3, I doubt they’ll sign up to a shafting. They have shown however they are not here for a quick buck, and this is probably all part of the long term master plan.
1gw,
"That means at some point R1 will produce a document to sell the deal to R1 shareholders. It will be easier to assess the deal when that document is published."
Yes, like they produced the takeover document to sell the Yume deal to rthm shareholders... How did that go and where are we now?
I find the comments on both here and the other boards odd. If R1 and Tap have been negotiating a deal, each side will have looked at how big they think the prize is (various ways of assessing the value of the merged company, post-synergies). They will have tried to negotiate a share of the merged company that they believe offers their own shareholders a clear increase in value over the value of the standalone company. Part of that will be a judgement on whether they think a cash element or a higher share of the paper will be more attractive. One of the measures they look at will doubtless be market cap. But there will be several, if not many, others. Market cap is a particularly difficult one, perhaps, because the market cap of Tap appears to have halved since October. According to the Sky story, any deal will be subject to approval by both sets of shareholders. That means at some point R1 will produce a document to sell the deal to R1 shareholders. It will be easier to assess the deal when that document is published. By that time the market caps of both companies may be very different from what they were at today's close.
graham,
"So if the total valuation is £260 million and TAP shareholders would hold the majority does that make R1 overvalued."
whichever way you look at it, where's the premium to rthm's current sp going to come from?
Brass, it remains to be seen what our masters have in store for us. As you say, how can it be an all share deal if Rthm will have fewer than 50% of the shares in the new company. That would be a sale at below the current market cap - which is scandalous. Time will tell...
wales = screwed over at Totally and 8p coming.
Ok, I’m struggling s bit on squaring this move. If TAP are going to be the majority holder on paper don’t they need to give us around £40m in cash to deal with the market cap imbalance? TAP had been consistently talking about an acquisition so that would normally mean a premium for the target but that is far from clear too. Of course if 3 major shareholders say yes it’s a done deal anyway but no idea what this does for the valuation of R1.
So if the total valuation is £260 million and TAP shareholders would hold the majority does that make R1 overvalued.
When the rthm/yume deal was announced, the combined group had a market cap of approx $242m...
https://seekingalpha.com/article/4133782-rhythmone-set-growth-yume-inc-acquisition
Yet, after a year after completion, today that combined group, rthm, has a lower mcap of £147m ($191m)...
Might explain why Stt has moved to posting his GDPR rubbish on the TAP boards for the last week or so...
Video ad firms forge bigger Google rival with £260m merger
Taptica and RhythmOne plan to unveil a £260m all-share merger in London
rthm currently approx £147m, TAP approx £115m
R1 & Taptica almost official - by the same journalist who broke R1 & Yume merger I think. https://news.sky.com/story/video-ad-firms-forge-bigger-google-rival-with-163260m-merger-116215
Sky News
same old shit,
Stt But then you are not invested here and are only here to talk the share price down. So you don’t have to worry.
a Google Exec's view on industry challenges and how they affect ad tech - GDPR, California Privacy Law and Apple's ITP. Apple ITP - the fallout from which he thinks is severe.
Fallout From Apple ITP Is Severe – And 7 Other Takeaways From Google Exec Sean Downey At Industry Preview
Privacy-first is the new normal.
“Many of the changes and regulations are consumer-driven.
“We’re all very aware of GDPR, and the importance of consent. But that’s just one piece impacting the ecosystem and it’s just one region.
“We all know about the California [Consumer] Privacy Act and similar things are happening in Brazil and India. It’s just the new normal.
“Then there are other things that technology companies need to do to protect users as well, outside of regulation, like the elimination of third-party cross-site cookie tracking.”
It’s not too soon, however, to talk about the fallout from Apple’s Intelligent Tracking Prevention (ITP), which has been severe.
“This was the number one talking point from all advertisers and agencies at CES – noisier than October [when Apple released a very difficult-to-track iPhone] because people were going through the results and seeing the impact.
“Programmatic is based on the ability to use third-party cookies to track and target. When that’s interrupted, there’s an impact to your results and how you do business. It’s a pretty substantial impact."
https://adexchanger.com/industry-events/fallout-from-apple-itp-is-severe-and-seven-other-takeaways-from-google-exec-sean-downey-at-industry-preview/
not neccesarily, if it is bought and held in treasury,
Tricky,
"I really don't expect a buyback to make a whole lot of difference"
Agree.
The proposed buy back is for 'up to $10m'. Currently around 5%.
It would help the EPS increase.
I disagree that buyback will not make a difference. I believe that because of the low volume the shorters have been able to manipulate the share price, because of the low volume and controlled by algo trading.
It will be very, very interesting, if company does a buy back , AND, shorters are trying to buy stock to give back shares they have loaned, Where will those shares come from ????
I really don't expect a buyback to make a whole lot of difference - love to see a long-term sustained rise in the sp but market forces are the chief driver.
Maybe see a blip that fizzles out - what's all excitement about - clutching at straws.
If R1 can't find better opportunities for the cash then a buyback is proof enough that they are not planning a major acquisition.
Looks like it’s started 50 shares at a time scheduled to complete by 2022
The company has said it expects cash to increase. If the company embarks on a share buy back, it depends on what they do with the shares purchased, i.e keep them in treasury, which could then be used to help with potential purchases, or cancellation of shares so less in circulation.
One thing it should do, is provide a proper marketplace for these shares because supply and demand at the moment is not good. ( in my opinion )
Any share buy back, needs to accompany positive results and cash balances. The rest takes care of itself.
Not sure why Yume gave a special dividend to its shareholders just before the R1 acquisition, perhaps technical reasons. It would seem strange if R1 gave us all a dividend and then announced a company had tendered a bid for 'our' takeover. Sort of implies that it's compensation: "Here we go boys, a few quid before we're shafted by the marauding pirates."
R1 has a 'free-float' of shares available to the public, on the open market, amounting to approx. 70m.
If R1 were to buy back shares there would be a 'float-shrinkage' of however many £10m would buy, assuming they used that amount.
It doesn't look like Yume's buyback did much for its sp but I also don't know what its 'free float' was prior to their buyback.
Of course a buyback also reduces the reserves available for other activities...
STT it's almost a year since TLY said they was going to have a share buy back but you haven't once asked WHY! they still haven't done it so far.
SO why are YOU asking here after just a few weeks?