Member Info for phil01

lor_9
i am not sure they are trying to encourage take over from a big name. Why would they state that they will only consider a an offer of £25 or greater for their shares while their offer is on the table. That means that no one will bother to place an offer if they are not going to offer more than £25 since AAA will vote against such offer.
I would have quite happily accepted £15 cash. I may even consider anything that is a pure cash offer.

Sorry typing on a phone screen:
First line of 2nd para should read:
......that Pte has sold does not necessarily mean the intent to make an offer for BOOM is still not on the table. ...

The summary of my post , is that I do not believe AAA has the cash resource to make an offer for BOOM without raising more money. The £2 per share that they were intending to offer was as close as sailing to the wind as they could afford. My analysis of their finances is in my post below.

Expecting a holding RNS today as someone must have bought the 980,200 shares from Pte Ltd at an arranged price.

Secondly that Pte has sold does not necessarily mean the intent to make an offer for BOOM is still on the table. The key thing is that it is an intent and no offer has been made and they also know that any offer at their proposed price will be rejected by management.
If I was Pte and they were to make an offer using shares in AAA, I would rather take £(.30 cash than take £2 and the rest in AAA shares that has no verifiable value.
They have till Monday to make an offer which all depends on how much money they raised. Besides even if they raised the proposed £150M , they will not have the cash to offer anything more than £2 per share, which has already been rejected by management.
As of 30th Dec 2020 accounts:
AAA has cash of about £9M (FY20 ending Dec 2020, will be much less now).
They propose to raise £150M (less once you take away the expenses)
The have to pay about £101 M this month for acquisition of Sentiance.

I do not expect AAA to have up to £40M remaining after buying Sentiance. The £2 per share for Audioboom will take more than £32M.
In other words I do not think AAA can afford us at more than what they offered unless they raise more money.

You may also ask why sell at £2 why not wait till it is £5 etc. Successful investors always have a clear idea of their exit price and usually stick to it. Remember when I was just a pup and I was told to always leave something on the table for the next guy. mind you I have had my fair share of walking a share all the way up then walking it all the way down again in the hope that it will always go higher.
Over the years, I now have a fair idea when investing what my exit price will be, the maximum I will invest in a share. Have also lost a few where I was the king of top up only to put more that i should have in the share and it didn't quite go as i thought, so now I spread my risk by not being top heavy on any one stock.
But in the end each individual investor is different and their circumstances and investment horizon is different, which is a good reason to make your own mind up and not be swayed by neither the the it will all go burst tomorrow nor it will be £xx in a few months gang. Your money so make your own decision. BB is great for passing the time but most of the time people in it has an agenda, either to make you believe that it is a great investment or to convince you that it is the worst investment ever.

Thanks Seeing-2020.
That make more sense, so PM is correct in his use of terms.
What he gave is the value of outstanding RFQ's of which SEE is hoping to win the majority.

Thanks Lewbo 18.

Wish PM will use different terms like Design wins so that his communication is clear.

Been long in the industry and putting things out for FRI, RFP and RFQ and believe the meaning is an industry standard. It will help if PM will ensure his use of terms is clear. Here he is using the term RFQ but wants to convey that SEE has responded to an RFQ which has has been accepted by the ODM.

RFQ pipeline : Can someone please help clarify what exactly we are supposed to red this.
RFQ is a Request For Quote, so does the stated value mean that SEE has bid for the contract or are we to interpreted this that they have won the bid hence this is now an outstanding contract value?
Just need some context before I start counting my chickens.

They have to declare their cross holding but that does not mean that they will vote for the offer. Even BOOM management have to declare their holding as required by takeover rules.
I still do not see this going through as it does not make any business sense and I am not sure AAA has enough free cash in their balance sheet to make an all cash offer. There is absolutely no synergy between AAA and BOOM, you ca see why Spotify etc will want to acquire BOOM, as they are in the podcasting business.
AAA on the other hand is an investment vehicle, they take stakes in tech companies and realise value by selling their stake at a higher price later down than the line. Buying BOOM is just an opportunistic deal so that they can sell BOOM to a higher bidder and not because they want to go into podcasting business.

https://audioboom.medium.com/audioboom-announces-distribution-partnership-with-samsung-podcasts-58aaddcf6ba6

I was just asking a couple of days ago why the Samsung deal has not been announced. That will make a step change in BOOMs revenue.

Skid35,
I am not disagreeing with you. Based on the release by AAA today, I am juts stating that BOOMs management rejected the deal on two critical points. If AAA are persisting then they will have to address those points before BOOM management will even consider any offer.
That does not mean that I will accept because I do not place much value in almost all the investments in AAA's basket.
If they are listed at list I will have an idea what the market values the shares, and secondly I have a ready avenue to exit by selling up. In their current offer I am supposed to trust them that their share is worth 80p.

Finally as BOOM stated, they do not see any logical synergy between our business and AAA., which there is not since AAA is just an investment vehicle that sees an attractive investment that they want to acquire.

BOOM's rejection of the offer was based on two critical points.
1. We are being offered paper on an unlisted company AAA.
2. Value of the offer,

From today's statement AAA is trying to get listed on an international market.

My reading is that AAA will come back once they are relisted. In such case they will have to come back with a reasonable offer that BOOM management considers to be fair value. At that point we will actually see what price AAA is trading in whichever market and be able to judge if it represents value.

Can't see all that happening before 16th Aug. So I would expect current offer to lapse and AAA to come back , possible about Q4. With the pace of growth expected in Q3 results , the price that AAA would have to pay at that time will also be higher.

From todays investor's presentations.

Business Initiatives that will drive H2 accelerated growth:

1. Q4 inventory of top 25 shows only released on 25th June 2021 to high pricing demand
2. Adrip tool for back catalogue inventory monitisation launched in July 2021.
3. Audioboom Global Ad Marketplace launching in H2
4. UK production team launching in Sept 2021. { Creating Audio Boom Originals specific to UK audience as well as working with UK talents to create podcast].
5. Significant Revenue from these shows falling into Q3 and Q4:
(a) NFL season - ( 2nd biggest sports show in US). [..NFL season in US starts in Aug].
(a) Dark History - ( 2 mill downloads per episode)
(c) Zane and Heath partnership - ( launched in Q3)
(d) True Crime Obsessed – 10 additional episodes in Q4
6. etc etc.

This may still have more legs to run, but there if they are coming back with improved offer there are only two path that allow s investors to know what they are getting for their shares:

(a)Purely cash offer.
(b) Mixture of cash and Shares. [ For me AAA needs first to be relisted on whichever exchange that they want. That way I will have a clear idea of the worth of the AAA shares that I am getting rather than someone telling me that it may be worth XXX which is purely subjective].

Great response by management.
Now AAA investors can go back to their BB and leave us to get along with our progress. The weight of this treat of an offer has now been taken off the shoulders of the company and I dare say the share will react favourably to this news.

If AA is really interested, they could come back with an offer that is purely cash based. AAA are no strangers to raising money , so they should raise some more and come back with a cash offer when they can afford it if they really wanted BOOM.

Iano12,
Well they can just give me my £25 and good luck to them. You are happy , less shares in AAA, and you are happy as you get to enjoy all the upside yourselves.

Unfortunately the uncertainty brought about by the circus of the AAA potential offer is weighing the share down, even though no offer has been made. Since no official offer has been made there is nothing for management to reject.
The share price will have been flying on this results if it is not for this uncertainty, which again provides a good indication that the market does not think this is a good offer.

People are worried that they may buy into BOOM only to be foisted with an unlisted AAA paper, so they are sitting on the side-lines while things become clearer.
If this was a good deal, people would have been pilling into BOOM in the hope that they can indirectly get a stake in AAA.

No thanks I have no interest in owning AAA. I knew they were around but has never had any inclination to invest in it.

To make matters worse the apparent billionaire owners believes that their shares in BOOM is worth at least £25 but expect me to sell mine to them at less than £12 per share, considering the current share price of 53p for AAA.

Not exactly the resounding endorsement of the type of people you will trust to go into business with, especially when they will have a controlling interest in AAA. If they are trying to stiff me now when they do not have a controlling interest, I shudder to think what their behaviour to minority shareholders will be when they have a controlling interest.

That is my view anyway as I intend to vote NO if this ever comes to a vote. They will need a 75% vote in their favour for this to become unconditional, even if the management recommends the offer.

Great RNS by the company. You can read the undertone in the RNS that BOOM's management do not think much about the terms of the offer.
".....There can be no certainty that AAA's proposal will result in an offer for the Company, nor as to the terms on which any offer might be made..."

When they start talking about the terms that an offer may be made , then it is clear that whatever terms that is in this current offer is not acceptable.

I will definitely be voting NO.
There are so much wrong with the bid.
1. The total value of £12 while they expect £25 for their shares if it is someone else bidding?
2. The offer of AAA shares as part of payment?
3. AAA to be delisted on 31st July and MAYBE relisted in some overseas market at a later unspecified time in the future. According to their release "......the Company will be better suited to being listed, in due course, on an alternative international exchange than AIM." Due course may be a year 2 years or whenever ..
4. AAA price is currently about 50p but they has used a price of 80p per share when pricing the share. Since they are using the closing price of BOOM on 16th July to determine the uplift, they should also have used the closing price of AAA on 16th July instead of an arbitrary 80p a share.
5. Loss of ISA wrapper when we have to hold unlisted shares in AAA