Good morning, it’s Paul here.
Estimated timings today – late morning start time, should be finished by mid to late afternoon.
Synnovia (LON:SYN)
Share price: 122.5p (up 40% today, at 10:57)No. shares: 39.0mMarket cap: £47.8m
Recommended Offer
This small group was previously called Plastics Capital.
There’s an agreed takeover bid announced today, at 125p in cash. That’s a healthy 42.9% premium to the share price on the “last practicable date”. This phrase is used 29 times in the announcement. At the end, in the definitions section, we are told that the last practicable date is yesterday. They could have saved a lot of ink.
The bidder is a Californian investment group, so here’s another example of American investors finding UK listed companies attractive bid targets, due to the weak pound no doubt.
This looks a done deal, with 57.7% of shares already lined up to support the bid.
In my view this looks a fair price. Synnovia was going nowhere as a listed company, in my view. Cash generation was poor, hence it was not able to generate enough cashflow to both pay divis and fund acquisitions. I agree with the announcement today, that the group would…
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
