Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Good points LCR.
The potential of a big drop before mass re-rate has been talked about here for a while and your analysis suggests it too.
Exit today and buy back lower as per your strategy.
And as per June volume, long termers here with decent averages should be more than fine.
Bring on the flash crash and the re-rate.
Crispin Odey Charged With Indecent Assault, U.K. Prosecutors Say (Bloomberg)
Crispin Odey, one of Europe’s highest-profile hedge fund managers, has been charged with indecent assault, U.K. prosecutors said. Odey was charged with one count under the Sexual Offences Act, and is set to appear at Westminster Magistrates Court in September.
Morning Cud
Keep up the good work on Twitter.
Disregard the disgruntled ones who are are disappointed Metro didn't pay "50-100 million" for RateSetter and now trying to find new holes in the deal.
I saw a mint box above this too, which will be disregarded.
1) there are data protection rules - so if mtro crosses the line it will be hig with $%1t storm quite heavily
2) efficiency of spam-marketing is well below 1%
Nah.
1. Always have been. Doesn’t preclude businesses from contacting the acquired database if all laws are respected.
2. You seem to be confusing spam and optin/ permission-based e-mail marketing. Two vastly different things. In this case, RS would have owned the customer base and data the moment a user registers. Metro now having acquired RS, metro would own the database and of course by extension, the right to contact anyone and everyone until they ask metro not to be contacted again.
Nice try there, Don’t get it twisted chap.
If your email marketing agency is getting you 1% results, fire them immediately or send them back to their unfinished internship. LOL
Afternoon BeeK
Thank you for the kind comments.
“ a data bank of over 750,000 people. We know some are lenders and some are borrowers and there may even be an overlap, but it is 750,000 qualified leads.
Using just the £12 million this works out at £16 per qualified lead. I would call this “a steal”.When you see that Rate Setter has an 8% gross yield then you may understand the potential of this acquisition.”
I absolutely agree. Many here are just seeing it as a peer-to-peer platform. Big mistake.
The real value here is access to the RS database: hundreds of thousands of people Metro can now prospect with a simple email, call or letter to pitch products and services.
This is where the real money is at, and from an acquisition perspective, it is a ridiculously low price to pay.
Having to generate 700,000 new database names that have affinity with a brand would cost tens of millions in the financial market, one of the most expensive sectors.
I can confirm the price of leads you were paying, and the price has now increased over the last 10 years substantially. A single lead can generate cost hundreds of pounds.
This deal is an absolute steal if metro taps into the RS customer base.
On top of being an excellent acquisition for pennies on the pound, there is another massive benefit here...
Keeping in mind the all-important line in RNS regarding FCA approval of course. No deal nor acquisition would have been through without FCA nod. So by extension, very safe to assume FCA investigation is a non-issue and will be resolved in a very positive for Metro.
Suggests FCA decision potentially done and dusted too.
“ What a great deal, get entity for pennies in the pound and assume no credit risk.”
Spot on Mister Z.
Potential liability was the other thesis by the negatives and a risk for Metro. That’s done and dusted. Excellent acquisition for pennies on the pound!
Morning everyone, here is my take from an M&A perspective regarding the Ratesetter deal.
1. The pay structure is excellent. Low upfront pay (I mentioned this a few weeks ago here on LSE, acquiring for minimal upfront payment but adding considerations down the road), which is excellent. Very low-risk acquisition and a FAR cry from the £50-100 million some were spouting. Top job.
2. Team and top talent is retained from RS. Excellent news too, providing continuity and transitions.
3. Excellent cross-selling opportunities for Metro. Low risk for metro, access to RS customer base for vast array of revenue opportunities.
Overall, an excellent deal. I don’t know how the market will respond but from an M&A perspective, this is an excellent deal.