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Just a thought on seeing that TP Group has today announced plans to raise around £24m to add to existing cash resources to fund existing business and make acquisitions.
Hello Sherminator - Most of HAYT BOD in their judgement (Having backed us into a corner perhaps they have come to their senses at last) is recommending AVG bid acceptance versus alternatives. . Although having plenty to say on 'approaches to winning new orders' HAYT has been very quiet of late on announcing firm new orders and it may be that which has weakened their negotiating position. In the circumstances only AVG with a deep enough pocket has come forward. I would have preferred a somewhat better offer but in the circumstances see good potential for the combined operations with hope that they will begin to show their paces by 2018 with an AVG price improvement to reflect that and more to come.
A sad situation for HAYT albeit looks a good deal for AVG. During the past year the great future potential of our existing business was badly compromised by all of poor financial management, vastly over optimistic revenue & profit projects from our BOD, followed by major failure to convert heralded order pipeline in a timely manner, and compounded by very dilatory reporting of changed circumstances. Looking ahead we can probably expect a year of transition before the combination of HAYT & AVG are able to begin to show their real potential in 2018 . Hopefully the market will anticipate that and give support to the AVG share price. Roughly speaking for 'remainers' 5p on the AVG share price is worth 1p on each HAYT share.
Is having a non-executive director with a large shareholding a help or hindrance to an agreed merger? And what about the same question as regards CEO?
Today's AVG share price closing near recent high suggests to me they are serious in intent. Still think any offer has to be in the eighties. Nothing new in the simplywallst article just their analysts opinion which I disagree with.
Hello Howard - AVG are savvy enough to know that they would be sent away with a flea in their ear at your hoped for level. If they decide go for it there is no point in their messing about. when a good & timely opportunity awaits them.
Sherminator ,I can't see your suggestion being viable. It's shares is the currency AVG has to acquire HAYT . It also has more than enough cash to finance the future capital needs of such an acquisition and continue to develop it's own existing activities. The two look a potentially good fit and if merged would have the capacity to provide a good ride for investors. I agree with graham-wales that it would be a shame if HAYT were alone to fall into foreign hands.
If AVG make an offer it is likely to be a ************** via either a merger recommended by HAYT directors or failing agreement an offer made directly by AVG to HAYT shareholders. There will be no need for AVG to have a rights issue.They will just plan to issue a certain number of new AVG shares in exchange for a certain number of HAYT shares. If successful AVG have already a surfeit of cash to deal with taking on HAYT's debt. The value of any offer to a HAYT shareholder will be determined by the terms of the ************** and the AVG share price in the market. That could change during an offer period depending on investors perceptions as to both the future progress of the merged entity and the likelihood of the bid being successful.
HAYT directors hold about 15%. If not already done AVG needs to suss out from the other larger share holders what price per share might interest them. IMO it needs to start with at least an 8. AVG need a deal and this would be a good match for them. If they faff around others may be tempted to enter the contest.
An offer if it comes will need to put 50p in the shade.
May have delivered to customers as much in February & March combined as total in the previous 4 months. Will therefore be interesting to see where the financial year end order book stands.
About time -after a dearth of new orders that makes £10.5m announced in the past month. Look forward to 20 April.
Heading North?
Chanjael - was just adding my guess as to possible terms versus your suggested figure of 67p.
No cash offer - instead AVG shares worth 83p per HAYT share.