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Great news and arguably also good news from boo rns looks like the management incentive dilution share of 3.4 percent will still go through. Wouldnt normally hope for this but for obv reasons am happier this time.
Would be surprised if this doesn't open tomo - they even put it in bold to stand out: "the Company expects that the suspension of trading in its shares will be lifted imminently."
Cusp of the cusp of the cusp means tomo.
If we come out of the auction high then boo are going to struggle to buy in bulk (no jupiter offloading to help them now).
They have 26.6% maybe almost 30% with Kamani/Moulding.
If the founders do sell to friendly to Bob parties then boo would need to buy at-least 20% more at much higher prices. Not sure they are even authorized to keep buying currently as their cash is mostly in their RCF loan?
Boohoo managed to buy about 12.8% Rev B shares in the space of 2 and half weeks (mid to end of Aug). Then later seperetely bought 13.6% direct from Jupiter in suspension I believe to take to 26.6%.
Don't see why a larger player couldn't acquire one of the founders holdings by Aug 7th (still have 6 weeks or so till then). If they can't vote etc anymore I doubt they are going to be holding them for too long. Zissman and Holt I'm sure will be assisting in advertising to buyers.
There are much bigger players £wise than boo out there and the founders will sell to the highest buyer.
If one of the holders sells to a large player before August 7th then that would be great for Bob and likely us (assuming they were more friendly to him than boo which seems likely). They would sell to the highest bidder. Wonder if Bob is trying to get such a deal to happen by leveraging his contacts? Is the capital markets day no longer to happen?
Trading4good, there could def be other takers of the founders shares before August 7th. Look at some of the large beauty companies for example.
I've written before I mentioned before how NYX cosmetics was bought out by L'oreal in 2014 for $500 million on $120 million revenues so a 4.16 revenue multiple.
In 2021 Deciam, who are the parent company of the ordinary, had a large investment from Estee Lauder that valued them at $2.2 billion on $460 million revenues, with the intention to fully buy them out by 2024. The ordinary are known for "affordable" products so I imagine similar margins to Rev B. In terms of online following Rev B are slightly bigger on social media.
This was a 4.78 revenue multiple. The same multiple for Rev B would value it at around 308p. Rev B currently around a 0.3 multiple.
The large beauty companies have a lot more £ firepower than boohoo and would be comparing Rev B to the likes of ELF beauty who are valued at circa £4.65 billion verses Rev B £59 million! The founders would sell to the highest bidder.
The fact that Rev B holders want it to re-list and boo don't tells you everything you need to know about boohoo having Rev B shareholders interests at heart.
Hopefully Bob H can win back some voters by late July/early Aug.
If founders are abstaining rather than voting with boo, boos majority may be slimmer than first thought.
Unfortunately in the happiness of realizing boo had been kept out a little longer I forgot that boo voted against all the other resolutions such as ability to allot shares. Unfortunately I guess means Bob can't dilute.
It's not clear what will happen in terms of management incentive shares. They had already been declared so are they bound by this vote or not? Maybe they still stand as declared with previous authority?
Assuming the founders again don't vote boo as far as we know have 38.9% of those who can vote (26.6/68.4). However with Kamani and Moulding on board it's likely more like 40% or more?
May depend on Bob getting one of the holders to vote but perhaps legally they can't. Wonder if the former chairman could vote, he seems sightly less implicated by the fraudulent activities?
It would take a fair while for any legal action to come to be plus Rev B already making their case in the RNS so doesn't look like a clear cut case.
I can imagine boo releasing an rns to this effect tomo though in an attempt to try and dampen the sp opening in which boo will likely be buying more (assuming it does open tomo).
Any shares boo buy post suspension, whatever the highest they pay would mean they were bound by that as the lowest price they could offer if they were to make a takeover offer to all shareholders in the following 12 months.