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Even the MM not making any trades...news incoming...?
Is there any stock around to trade? 20% + spread. Surely ready to cross the rubicon.
My only thinking on a transaction such as a placing was that clearly they are still negotiating something so it could be that...I do think they need financing to reduce the debt and expand the rentals
Instant quote spread on this is a joke at the moment ... over 0.7 which seems fierce.
I would have thought this was obvious....
As part of a balanced portfolio of investments
It is well documented that UK small caps are at silly prices right now - I imagine its one of a nuber of investments he has made ito mis-priced shares
Why has someone with a net worth of over 3 billion bought 4% of MM which is like 240k. Even if this goes up 10x it won’t make a dint in his net worth. This guy could have bought the whole company and not noticed the difference in his checking account. Or put it this way MM has a market cap of 10 million, he could buy the whole business one thousand times and still have 2 billion left over.
Peter Hargreaves stands to take approx 1 billion from the sale of Hargreaves Lansdown. His investment in MMAG is approximately 280k.
MMAG may
Why would there be a placing Thunder2040? interested to know the thought process behind this. I imagine a billionaire peter hargreaves would be privy to a placing and certainly would not buy 4% of a company if he was about to be diluted.
BOD have not been able to buy a toffee since the start of the offer window.
The bid and offer spread was very manipulative today. All the action still 7p+
The market makers dropping it as they have been drip drip fed too much stock the last few weeks. The AGM update was a placeholder expect something is in the pipeline hence the minimal disclosure...not sure it's a full buy out could be a placing who knows but I guess not long to wait until interims
I don't think it's mandatory and if an MBO or similar is going to happen I can't see us hearing anything but the minimum. Would imagine this gets routed again and another holding RNS suddenly appears. Still, all just a game and all that .. .ready to buy in the 5.5-6 window again!
Is a trading update mandatory or will we have to wait for interim results in July?
... Still no trading update I notice... Some nicer buys today however which is encouraging.
On that basis Diamondguru and how AIM usually tends to operate, are you suggesting this is a Strong buy?
The company is in a terrible state, massive debt and share price has collapsed , if the directors believed in this company then they wouldn’t have put the for sale sign out.
As per financial statements signed in March 2024:
'In November 2023 the Company entered into an offer period
and has subsequently engaged with a number of interested
parties to determine if a potential sale of the business could
deliver greater shareholder value. No sales discussions have
concluded and the business therefore remains in an
offer period.'
As per RNS pre AGM:
'musicMagpie plc has been in an offer period since 27 November 2023 during which time various conversations have taken place with interested parties. Several discussions remain ongoing and as such the Company remains in an offer period. There can be no certainty that any offer for the Company will be made, nor as to the terms of any such offer. The Panel Executive has granted a dispensation from the requirements of Rule 2.4(a) and Rule 2.4(b) of the Takeover Code such that the Company is not required to identify any potential offeror with which the Company is in talks, or from which an approach has been received.'
A few things:
-I find it interesting that they said no sales discussions have concluded, when BT and Aurelius both said they would not bid. Surely those sales discussions did conclude with no offer being made;
-Why did they walk away so fast - was there never serious interest, did they not want to be named or were the valuations so far apart that things ended fast?;
- Several discussions remain ongoing - rather than just one, so are there still more than one interested party - are BT and Aurelius still involved I wonder? Does the existing PE backer want it for themself?
- Is there literally nothing concrete and this is just being dragged out for some other purpose - like there is basically no chance its getting bought but they want to keep interest going;
- Some form of other transaction where there is a capital raise or placement rather than full sale;
Last year the pre close half year statement gave actual figures, whereas that AGM trading statement gave none. So within the next month they need to publish interim figures so we can see how they are doing.
I think there is unlikely to be a bid currently, and I think the fact that this is dragging so long is no a problem. if they believed in the business surely they can turn it around. I feel like certain facts are being left out of this.
Back in the doldrums again tapping one’s fingers…. May be a silly question but do we think this lack of movement on the takeover side is linked to the UK election? Ie overseas investors wanting political stability before progressing? Or do we think the investors are holding off till MMAG to demonstrate reversal of the trend though strong interim update? The cost cutting should start bleeding though now surely?
*engineered to some extent.
Yep, 7mil cash from ops. Profits can be engine
I noticed a few things when looking under the hood at the FY23 results too - from ops the business is cash generative. The increase in debt was to buy inventory for rentals, and can be readily turned back into cash if they so choose. User figures are actually growing and the crack down on fake stamps that rivals may have sued must boost their position on resale platforms..I just think they need to focus on getting the bottom line profitable as they have alluded to. The margin improved in FY23 so I believe they know what is required here. Fail to see how the business is not able to turn around, grow and make a profit then be refloated at a massive premium if it were taken private. The clothes side of the business needs some refinement but I am sure there are lots of household products that could be resold.
15p would be a great return, that's circa 100% from here. I'd take 15p today. Why don't they just get on with it instead of issuing another 500 pointless RNS's.
In 2011, LDC, a private equity firm invested £10m in Music Magpie.
'Sales in 2009-10 from from £2.5m to £11.3m and are expected to hit £30m in the year to the end of May. Earnings are expected to have increased from £1.5m to £4m in the same period.'
Someone can buy the whole company now for less than the investment, and sales are £130m+ I think if a profit can be turned soon, this would be worth multiples of current level
Yeah, I used those to make the calc. Only issue is his purchases prior to the 1% threshold cross were not publicly disclosed, but if you assume somewhere between 10-12p then the ave works out at almost exactly 10p.
Fingers crossed we see some announcement soon.
P.S to address you comment about averages, I think Hanson includes the execution price of his tranches on the 8.3, so I think your ballpark figure is about right. I would think that the end game is close, others have said they expect there to be a trading update for H1 but I noted that the AGM statement was issued with comment on trading, but no numbers - this wasn't the case last year I believe - was that a stop gap - perhaps, but to be negotiating this long I would have thought it must be nearing conclusion either way now
My main concern on the risk side was a de-listing. However, I think a quick dilution event afterwards would have to happen to address financing which should in theory put many holders off rolling into the private entity. Tough for them to get to 75% still. Also not sure that's a game Hargreaves would want to be associated with.
Hanson setting up the holding company is a good sign for sure.