Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Looks like this guy has Kape by the nuts!
The only hope is another offer for the company. Can't blame them really, uk investors don't seem interested
So Unikmind are acquiring KAPE for 285p. Hmmm.
Can't blame them for taking advantage of the current price. The UK markets are fast asleep. If the City isn't ready to value companies like KAPE appropriately then why on earth shouldn't Unikmind reap the rewards themselves.
The initial offer was 265p! So the directors squeezed out another 20p for us....
KAPE is worth far more, but given the lack of traction on the market I'd do the same in Unikmind's place. Of course that's the danger of investing in companies with a dominant shareholder.
It's been a highly successful ride for me from 66p or so, but could and should have been so much more.
i was expecting more but i am done here ,and i think next could be CNIC
Yes, huge shame. This could and should have been so much more for investors. I’ve let go of half on the slight chance we squeeze a little bit more.
Pound to a penny, Unikmind aka Teddy Sagi, relaunches KAPE as a brand new IPO in a couple of years (claiming to have now "added value") -
- at a vastly greater SP than that which has been agreed today, of anything up to £10 per SP.
Another derisory offer for a British company. That's K3C and Kape - potentially some of the fastest growing companies around - within a matter of weeks gone on the cheap. So frustrating as not long ago we were up to around 500p. Sagi taking advantage of market conditions, and bending his shareholders over (thanks Teddi). Think I'll keep hold of the shares for now, as it will 100% go through at a basement price of 2.85, but the board may eek out a little more. Doubt there will be a counter bid accepted from external parties personally, unless a mega offer comes in.
Feeling a bit peed off, as the offer price is only fractionally over what I bought in for a while back. But, that is the risk with a dominant shareholder who is also a convicted fraudster and would pimp -out his own mother for a quick buck.
Anyway, what to do? No idea really...
(i) The threat to delist is hollow I think. Where would that get Sagi as he'd still only own ~60% and it would now be much more difficult to buy-out the "rump".
(ii) Bigger knockout offer coming from third party. Highly unlikely as it would have the be a price higher than Sagi thinks he can get by re-IPOing the company a few years in future. Would need to be >>£5 I think.
(iii) Hope our "independent" directors can squeeze out a higher price. As the share price is 290p this morning this looks to be what the market expects. If it were >320p I would take it.
Anyway, Sagi will make some money but who will invest alongside him in future?
Very annoyed too with an opportunistic bid for the company. The share price was 285p less than 3 weeks ago so I don't feel it is at a "premium". With regards to the takeover being a done deal does anyone know what % of shareholdings has to vote in favour of the deal - I have seen several figures ranging from 51 to 75%. I can see how a 3rd party bid can easily be rejected by Sagi but if the acceptance criteria is 75% then there is a small chance that Sagi's offer wouldn't go through. A higher bid by someone else would make him realise he would need to up his offer to get the required amount of votes. Thanks in advance for replies.
Don't like this blackmail, take 285p per share or we will de-list you, pitty FCA are useless as this should be stopped.
But don't worry you will probably get a chance to buy in again in a few years on the new IPO at a greatly increased price.
Yep - shouldn’t be allowed to own that much of a public company. I’ve sold just under half my holding above the offer price. Will keep half for the final showdown, whatever that may be. Saw the RNS headlines this morn, and was expecting to read 60-70% premium. So disappointing
Spot on Terry, not even a veiled threat, very unpleasant
Sell to me or be stuck with something pretty much worthless
.
It's a pretty horrible set of circumstances. Really horrible when you compare to Adept last week being bought at almost 2x. Adept had far less potential growth wise and was highly geared...
I really thought we would be looking at a takeover for Kape...but an external one which would see shareholders make 2x minimum. Even that would have been at trading multiples far lower than other transactions in the sector...so this is just a terrible position now.
I sold personally...not impossible that the board will secure a further 10/20% from Sagi...highly unlikely another offer will be put on the table as Sagi would clearly reject it given he wants to take Kape forward privately. So in my view any upside from here is limited and holding on was an opportunity cost - CentralNic in particular feels like it could be next in line imminently and plenty of others.
Interested to hear what others think will happen here. Sad day in my view...a proper destruction of shareholder value. However, not blaming Sagi; its not for him to be acting in our best interests, only his...and the UK market just simply would not ascribe a reasonable valuation to Kape.
What if we reach an impasse? Board says min 350p say, then what? Sagi tries to buy shares in the open market and persuade institutions to sell - but would they? If he can’t get to 75% to trigger a delist (if that’s the threshold), what can he still do as majority shareholder?
But if he gets to 76% and can trigger a de-list, but the other 24% of shareholders still won't sell, then how is that advantageous to him. He just ends up with 76% of a unlisted company which surely is worse than 76% of a listed one because it's harder to now mop-up the other 24%.
Am I misunderstanding something?