Member Info for danl90

Sorry I'm chipping in

Boohoo needs the fulfilment side not the technology side (matalan is the inverse so I think that's your confusion in your response). Boohoo need to get product to US faster and they plan to build a US warehouse. THG have a warehouse and links to couriers. This is the part boohoo needs

On returns THG can add this in (if needed to be added or scaled) the same way it added items for quality street etc. Atm boohoo flys everything back to UK from US. So a THG solution is going to be cheaper. But also your point misunderstand that boohoo's returns are decided by them they are dictated by consumers. Boohoo might not like returns going up (evidenced today) but that's not in their control. Just finding the cheapest way to service is

Boohoo can't say "oh we want returns to be 50% of current level" as no one except the consumer can drive that

100% agree on this!

You also need to take a view on how much of the exceptional returns was due to party dresses and then Christmas parties being cancelled?

In Jan if there is a suggested lockdown that can quickly flip as product mix changes

The interesting comments I think are around automation and is therefore the outlook worse but net automation? Or is automation being shelved to get access to US

Annoyingly an analyst didn't ask this

I mean it doesn't look so good owning a £73m London office now?

Honestly JL has got this wrong. You need the proposition everywhere not just one market. I think they were gambling on hitting £6 before the music stopped and it's backfired. A high growth business should never know what to do with cash so much so that it goes and buys property!

The Group continues to invest in building a distribution network capable of supporting in excess of £5 billion of net sales, with our first US distribution centre expected to go live in 2023, and we are considering options to expedite this process

Two Manchester businesses could get each other out of a pickle. Boohoo wants fast US distribution and THG wants big clients. Boohoo can get what they want in 6 weeks from THG

Save's Boohoo shareholders £200m of cash on a US distribution centre which it doesn't have! £70m of net cash after peak trading is a concern

Cantona not sure I get your joke. I was saying it was just rubbish spouted at a bar. There’s lots of young professionals in manchester who let stuff out. If I was less ethical and less scared of prison I’d be rich but then the other half of stuff I’ve heard has been hot air so my default is ignore it all

The LinkedIn posts will have to edited regardless. It’s a public business all trading or material share price info has to go via an RNS first. So these people were just being silly and probably not correctly trained

Isn’t Matt higher than that?

Why would you take it private with 25 different shareholders? I don’t think you’ll find one example of that in a P2P

Private companies are usually closed circles. That’s what you want. The buyers group will be small ie Matt and friend and potentially SoftBank

A random pension fund in Canada has nothing to add so they won’t want them on board. Buy them out and one less voice to deal with

Also a lot of shareholders are funds which are only allowed to hold listed investments so couldn’t roll if they wanted as their own rules wouldn’t allow it (this is why Chrysalis is an enigma on the stock market as it’s a fund which can hold a lot of pre float stock ideas)

Agree healthy to share ideas :)

Agree on the SoftBank point but I think that’s what the market had been saying why for that price buy 20% of a division when you could buy over half of the whole thing

I’m not sure on top 25 being the buyers group. When you take a company private you want control and to be decisive. The buyers group will be small

Think Matt and friends, chryslis, sofina, balderton (how much do they have - and all three of these were in matts “friends” group) and then potentially SoftBank if they are in or out

Sorry I don’t think that was my point. My point is that the “buy-in” for a lot of the votes will be higher than the current price. Goldman at c.320p will vote no unless there is a big premium to their price

My point is that (and this is how it’s done) is you need to work backward from where each investor bought in and what they paid

It’s not a case of just saying 30% on top of price today

You have to work down shareholder by shareholder to see at what price you can buy the votes needed

I also don’t think FCA is an issue at all. It’s an open market. Matt didn’t make it go down. He will just argue it’s misunderstood and point to the USA with shopify. So whats to investigate? There’s always a seller for every buyer

Also you can’t choose to keep your shares in a buy out you get caught in the “drag” which is once the buyers group have over a certain amount you are “dragged” along and forced to sell

Re your percentages fair if they are correct but be good if you can share the breakdown

I don’t think the golden share made any difference. The golden share only stopped a hostile takeover as Matt could vote it down. If Matt liked the takeover he could approve. It was never to stop takeovers. Just hostile ones. But without Matt there would be no takeover so it was sort of pointless as a mechanic. It was purely he was asking something new from the city that was an issue (tied with his ego image)

Also re buy out price. It’s a misunderstanding that it’s just the price on the day plus 20-50%. It’s incorrect as you need to make sure you’re buying the votes you need

A share might be £1 and you offer £2 but if 80% of shareholders bought at £3 they will vote it down

With THG to get a view on price you need to know
- how many votes you need
- who can vote
- buy in price of those votes

On this I’m not sure if it’s 50% or 75% and I’m not sure if buyers group would be excluded from voting

But assume Matt, SoftBank, sofina and Chyrsalis all were the buyers group that is 40% of the shares

So what’s the average of the last 60%.

We know T Rowe is c.£2 (might have a bit a bit higher) - 5%
Goldman have 3% at £3.20 odd?
We clowns might have 5% (I mean PI’s not us on this board) but we are in all over the shop and you wouldn’t get irrevocables from us
Blackrock had 5% but now lower. To me this is the doubt on a take private as it would be an easy place to secure 5% of the votes (or 9% excluding buyers group). If it was a take private and they were brought “over the wall” then they would be banned from transacting. So we’re Blackrock shunned? I mean would be petty and I guess if they knew they were still selling then it more shares at a lower average but again you can’t get irrevocables from PI’s

So what would the price be? I think you need fo be above IPO price as there are a lot of investors in at that price or higher and they would vote no

To give this guy some credit in the last month he called Taylor wimpey a week before it happened and Marshall motors

I did hear someone from EY in manchester say something at a bar a week or so ago but chalked it up to the person being a junior and just wanting to talk rubbish to show off. I still think that tbh when I recall that situation and it also wasn’t specific

Yeah it could equally say

“Have had confirmation that SoftBank are out”

I’m not getting excited

All I see it says is “THG group said to”

Can’t see anything else

Ha sorry!

Are there any details?

Ahhhh thanks for sharing the links

You have one to todays rumour?

I’m just reacting to the below

People are saying it’s from today?

They are raising money! This is not good

The dilution from this price will be huge!