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I rest my case. Bought for 1175p early doors and already 1400p at the close of business. much more upside to come for sure.
Back down to 1150p which surely provides a good buying opportunity .
Yup, party's over.
Looks like the market is unconvinced that Advanced will make a firm bid by the deadline of next Tuesday.
Hopefully the SP will remain supported at the current level until we get news of better trading in H2.
Whilst I won't cut and paste directly from their opinion (and get this post deleted) Berenberg see significant grounds for optimism and a longer range forecast of 3500 per share for XPP.
They are also 'minded to agree' that the Advanced Energy bid is opportunistic.
Tbh, I dont blame the Board. They can't entertain every willy nilly piddly highly conditional offers.
Advanced Energy needs to come up with a serious binding offer. There are other suitors out there to take out this market leading business. End of.
Unhooked
I think the gap reflects the fact that it's not a 'firm' offer and Advanced will undertake due diligence which may throw up an issue that makes them walk away.
I'd love a competing offer that better reflects the historic highs of this share.
So I reckon there will be another bid, now it’s out in the open we have a bit more visibility. Question is at what price we get taken out. Yes, we want fair value but personally I’m a bit miffed by the Board nonchalance.
Trying to understand why there's such a gap between today's market price and the indicative offer price. Management have rejected the £19.50 offer as being too low and yet the market doesn't believe even £19.50..! It's like the market reckons management have some sort of veto over any offer... but they don't.... they would have to put such things to a shareholders' vote and they don't have a controlling holding.
New here. But Alessandro, why are you surprised share price is not matching offer?
I no longer have confidence in a Board that doesn't keep shareholders in the loop. Too much risk that their primary focus is their personal wellbeing rather than our interests (although in this instance I would agree with the decision to reject the bids).
SLICE i know a few on here will say dont be silly etc
I might settle for £25
3 offers rejected but we don’t hear about it from our Board but the opposing party. On the back foot?!
Ridiculous offer indeed, however I am surprised the share price is not matching the offer price.
I wish I had invested more, I was trying to optimize my portfolio but this offer came in at the wrong time
They want a £1 billion business for half a billion. Bid at least needs to be 4000p, at the least!
What the heck is going on with XPP?!
Noferkinamesleft thanks. Do we know why customers called off orders?
I appreciate all being said about the slowing down of the chip industry and all the rest, however I lack visibility on the scale of the industry related headwinds and the impact on XPP. I have the impression (and that's gut feeling only) that the severity of the hit on revenue is of a magnitude that can't be justified by the slowing industry alone.
Alessandro, they did say a couple of RNS' ago that customers were being slow to call off orders.
The drop in revenue is huge with not much in sight for a recovery. Did XPP lose contracts, are customers turning to different suppliers? Is XPP technology becoming obsolete? Not much clarity here.. for me.
Full year trading results out to tomorrow ( Tues, 5th )
Bottom in? Seems to be bouncing on reasonable volume.
The 2nd of October update the share dropped for a good 4 days
3 negative trading updates in 4 months is absolutely horrendous and red flags all over this now
I hope so karlo90 but when you read that RNS again from yesterday they only are positive at 1 point and that is for possible customer orders in 2025.. lots can happen in between
50% may have been an over drop but I would expect it to drop another 8% Monday
Bestintown refered to last November fund raise , 3 months ago.
Tue, 07th Nov 2023
XP Power raises £43.9m in placing, rejects bid approaches
XP Power surged on Tuesday after it raised £43.9m in a placing and said it had received "a small number" of unsolicited expressions of interest which it has rejected.
The company raised the money through a placing of just over 3.8m shares at 1,150p each, which is a premium of around 11% to the closing share price on Monday. It raised an additional £1.5m in a retail offer at the same price.
Proceeds will be used to reduce net debt, improve the group's liquidity position, refinance capital investments and continue to invest in key areas including R&D, the company said.
It also said that since its trading update on 2 October, a small number of parties have expressed indicative, non-binding interest in buying the company "at prices which the board considers fundamentally undervalue the company and its long-term prospects".
Having considered each of the expressions of interest with its advisers, XP Power said it "does not believe that any of them are at a value which merits further engagement with any of those parties and has had no hesitation in unequivocally rejecting them".
At 1158 GMT, the shares were up 23% at 1,275.30p.
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