Q: Two questions: 1) what's your recommendation in terms of selling now compared to waiting for a while, and 2) your general thoughts on the premium above yesterday's share price and what that says about how PLC was doing in the public markets? The offer is obviously on the high end of the spectrum for when a company is taken private.
5i Research Answer:
It is a good offer, all cash, and at a 62% premium. Shareholders will need to vote, and we would like to see the offering circular when it comes out, but this looks like a done deal to us. Upon approval (will take some time) cash will be swapped for shares and the company will be de-listed. Shareholders should vote to ensure no payment delays, but if all conditions are met then shares will be swapped automatically. We would, for now, hold. The premium is on the high-ish side, but small caps have gotten little respect in the market, and longer term players (and private equity) are willing to take future value for themselves from short-term-focused shareholders.