Going PrivateToday 14:35
The talk of going private I think is a very real possibility, however having given this some considerable thought my current views is that this may well be a good thing. My thinking at least is as follows...
Ian Gilham has a very successful track record of growing small companies and selling them for significant value, many around the £250m marker. Not so long ago, the company issued share options to its senior team, with James Cheek I believe having the option of 750k shares and Gino around 500k shares, amongst many other top management. If the company was to be taken private for a pittance, then what kind of an incentive would that be for the top management to perform. Share Option are incentives to deliver against key objectives by a certain date more often than not. It was also stated in the RNS where the options were granted that they could be taken up subject to hitting specific performance targets by June 2025.
From a perspective of employee satisfaction and rewarding performance, going private not would be a massive disincentive for anyone.
We know that the following news is likely to land between now and June 2025:
1. Potential for full recommendation from NICE for CYP2C19 stroke test, with then potential NHS take up as mandatory (this should increase the SP)
2. NICE special commissioning for MT-RNR1 to avoid deafness in new borns which is expected by end of this calendar year or early 2025.
3. CE+ marking for CYPC219 stroke test early in 2025
This is the top 3 for me and all fall conveniently prior to the June 2025 target date for 'key targets to be met' in respect of Share Options. If the company hits these targets, one would imagine the SP will be far higher and prime for going private at a sizeable buyout price. Any buyout price would be based on current valuation and also expected valuations based on products in development...not just based on MCAP.
Its worth recapping on the RNS with the share options for directors as its states in there clearly around certain performance criteria being met.
Just my thoughts only, but would welcome others views.