TSK - TASK Group Holdings

[winner69]

So we have ruled out discounting the cash flows as it’s impossible to guess these for the next 10 years.

I like the revenue multiple compared to its peers approach


But that’s guessing or coming up with a ‘value’ eh Rawz …nothing to do future cash flows or anything like

But let’s play a game

Story as it is what we know today ………hoping they might actually generate +ve cash flow one day ……value / share price is 40 cents (2 times sales)

Story about them actually having something customers really want and Task start performing ……value/share price say $1 …4 times sales (assuming they are more than now)

The fairy tale …….all the zillions of transactions through the likes of Maccas actually deliver real cash ……value/share orice $2 …6 times sales (with even more sales growth

But there will be one or two who might see the wonderment of all they day and they conquer the world ……say $3 based on profit multiples

What you reckon


How’s that …not a guess but maybe an inexact science

[winner69]

Hey rawz …Tsk trading at just over 1 times book value ……maybe a bit higher if you allow for the cash

The market essentially saying that their future profits will just cover their cost of capital …let’s be generous that’s only 10% ……meaning market saying npat should be about 13m now and growing from there …but years away from achieving that so big expectations built in.

But that’s an old fashioned approach to looking at value eh …prefer these cheat ways like sales multiples ..or the value of the story

[Rawz]

Hey rawz …Tsk trading at just over 1 times book value ……maybe a bit higher if you allow for the cash

The market essentially saying that their future profits will just cover their cost of capital …let’s be generous that’s only 10% ……meaning market saying npat should be about 13m now and growing from there …but years away from achieving that so big expectations built in.

But that’s an old fashioned approach to looking at value eh …prefer these cheat ways like sales multiples ..or the value of the story
Bill Gates always said.. if he had a tough problem to solve.., he would hire a lazy person to do it. As they would find the easiest way to solve it.

[Greekwatchdog]

Nice to see some nice volume go thru today + positive share price movement. Looking forward to 3rd quarter update at some stage this month

[winner69]

Not much volume going through these days and share price continues to languish around 40 ……looks like current volumes quite a lot less when dual listed

Seems Task maybe is fading into obscurity ……Aussies say Task, who are they …..maybe only Bell Potter clients have heard of them

[Greekwatchdog]

3rd quarter update https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02766469-2A1501621

[SailorRob]

3rd quarter update https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02766469-2A1501621


All very positive.

Unreal, I was looking through the old announcements and financials this morning, first time in Months, and then checked the date of the last Q release and figured they must be one due soon, then saw your post. Total coincidence.

[SailorRob]

Not much volume going through these days and share price continues to languish around 40 ……looks like current volumes quite a lot less when dual listed

Seems Task maybe is fading into obscurity ……Aussies say Task, who are they …..maybe only Bell Potter clients have heard of them


As long as they know what cash looks like and Task make enough of it thats all we need to worry about. It's not a popularity contest. If you believe in the business then you don't want the Ozzies finding out who they are.

Cash doesn't often fade into obscurity.

[sunnysleeper11]

plenty of cash on hand but they did burn through a fair bit:

The Group had cash of $26.9 million at 31 December 2023 (down from $31.1 million at 30 September 2023) and no financial debt.

[Greekwatchdog]

[QUOTE=sunnysleeper11;1038755]plenty of cash on hand but they did burn through a fair bit:

The Group had cash of $26.9 million at 31 December 2023 (down from $31.1 million at 30 September 2023) and no financial debt.

To support growth you need to spend. Rather they do it with good cash management. From my side they are doing that. $26.9 in bank isn't a bad position to be in.

They did also mention receipts from Plexure divison were low in quarter so expect that to bounce back last quarter of 24 financial year.

[Ggcc]

Positive update. I would have loved to have known what their guidance for FY would have been, other than that nothing going on. Boring can be beautiful.

[winner69]

Always interesting to see where cash comes from and where it goes.

9 months f24 v 9 months F23 (pcp)

Cash from customers UP $11.9m

But product and operating costs UP $9.1m …extra cash out
And Staff costs up $5.8m …..extra cash out

With a bit if other stuff Opersting Cash Flow was $3.3m

And capex spend was $5.6m more

This year seen cash burn of $0.7m compared to positive cash flow $8,3m …..thus $9m turnaround

Suppose one has to spend to grow …….but spending seems to growing faster than receipts

Only a cash flow view …P&L might be different

Just as well the value is in the story ….that’s the important thing

And share price over 40 cents again ..that’s good (for some of us)

[Greekwatchdog]

Always interesting to see where cash comes from and where it goes.

9 months f24 v 9 months F23 (pcp)

Cash from customers UP $11.9m

But product and operating costs UP $9.1m …extra cash out
And Staff costs up $5.8m …..extra cash out

With a bit if other stuff Opersting Cash Flow was $3.3m

And capex spend was $5.6m more

This year seen cash burn of $0.7m compared to positive cash flow $8,3m …..thus $9m turnaround

Suppose one has to spend to grow …….but spending seems to growing faster than receipts

Only a cash flow view …P&L might be different

Just as well the value is in the story ….that’s the important thing

And share price over 40 cents again ..that’s good (for some of us)

W69, Read under cashflow. They highlighted why it was lower, so no big deal, it will flow thru final quater..

[Rawz]

Their updates could be a bit better imo. Like more $$$ number could be provided.

I.e. they sign up a new enterprise customer. How much is that worth?? Tell us…

Market likes the update I guess with the SP up 10% today. However I fear over the coming weeks it will just drift lower as no numbers provided so what are we paying if we wanted to buy more?

[SailorRob]

Their updates could be a bit better imo. Like more $$$ number could be provided.

I.e. they sign up a new enterprise customer. How much is that worth?? Tell us…

Market likes the update I guess with the SP up 10% today. However I fear over the coming weeks it will just drift lower as no numbers provided so what are we paying if we wanted to buy more?

Why do you fear it sport?

[Rawz]

Why do you fear it sport?

Classic SR post.

[SailorRob]

Classic SR post.


Cheers but can you give me an answer?

Do you fear supermarket prices reducing?

[Rawz]

Cheers but can you give me an answer?

Do you fear supermarket prices reducing?

This topic has been thrashed on STr. You need some new material mate

[Baa_Baa]

Positive update. I would have loved to have known what their guidance for FY would have been, other than that nothing going on. Boring can be beautiful.

I think it is a very good quarterly, maybe a bit more info on forecast revenues would be helpful, but three new USA customers in the quarter and another two since is great news. PFS Brands USA is no small beer, look it up. Press Coffee going live on MOP. This is excellent news for the TASK expansion into the USA. And to mention McD's going ballistic on transactions.

Guidance would be good but it will take a while to bed in the new customers and we're still waiting on completion of the Ozzie pizza outfits. I understand TANK in NZ is fully up and running, full stack solution.

People will remember only a short time ago, PLX was in the dog house, the share price was crushed, TASK didn't exist. My, how times have changed and quickly. I fully expect those wanting a higher share price will be very happy this year.

[SailorRob]

This topic has been thrashed on STr. You need some new material mate


Yeah but I'm not getting through, people like you are living in fear when you shouldn't be. Is it pressure from someone else in your life? Or just that you need the market to give you the validation?

SR here to help.

[SailorRob]

I think it is a very good quarterly, maybe a bit more info on forecast revenues would be helpful, but three new USA customers in the quarter and another two since is great news. PFS Brands USA is no small beer, look it up. Press Coffee going live on MOP. This is excellent news for the TASK expansion into the USA. And to mention McD's going ballistic on transactions.

Guidance would be good but it will take a while to bed in the new customers and we're still waiting on completion of the Ozzie pizza outfits. I understand TANK in NZ is fully up and running, full stack solution.

People will remember only a short time ago, PLX was in the dog house, the share price was crushed, TASK didn't exist. My, how times have changed and quickly. I fully expect those wanting a higher share price will be very happy this year.


Yeah you would expect that quarterly would have moved the market but as Whinger said, nobody's watching. Which is great. Let the business prove itself to a small audience first.

[Rawz]

Yeah but I'm not getting through, people like you are living in fear when you shouldn't be. Is it pressure from someone else in your life? Or just that you need the market to give you the validation?

SR here to help.

Okay, I’ll play your game.

So first go back and read my post and stop focusing on the fear bit and look at it as a whole. Actually ill just break my thoughts down here in 3 parts:

- task update is not providing us enough financial info

- SP pop today will (imo) be reversed in due course because of complete lack of financial info provided

- when SP drops lower how are we to buy more with this black hole of financial info. Essentially just buying the story like winner says

[Greekwatchdog]

Would they really have a clue what these new clients are worth potentially?? Its based on consumer engagement. I guess we have to wait for May to find out.

[mfd]

Yeah but I'm not getting through, people like you are living in fear when you shouldn't be. Is it pressure from someone else in your life? Or just that you need the market to give you the validation?

SR here to help.

Some people want the price to go up because they want to sell at a profit, others want it cheap if they continue to accumulate. We're all on the same field playing different games in different phases of life, it's not surprising that others are behaving differently to you and not worth clogging up another thread.

Nice updates, good to see the momentum in the US

[SailorRob]

Okay, I’ll play your game.

So first go back and read my post and stop focusing on the fear bit and look at it as a whole. Actually ill just break my thoughts down here in 3 parts:

- task update is not providing us enough financial info

- SP pop today will (imo) be reversed in due course because of complete lack of financial info provided

- when SP drops lower how are we to buy more with this black hole of financial info. Essentially just buying the story like winner says

Yeah it's just a quarterly update though. Most companies don't even do that. Maybe on ASX they have to?

[Baa_Baa]

Would they really have a clue what these new clients are worth potentially?? It's based on consumer engagement. I guess we have to wait for May to find out.

Not entirely, the TASK stack is sold (as far as I'm aware) as installation one time costs then ongoing annual licence fees. The MOP after install is more transactional (implied in their commentary), ergo clipping the ticket, so would be variable on transaction volumes that used MOP.

IMO they will have fairly good idea of what their install + annual licence fees are, and a decent guess at MOP. So they could take a stab at predicting revenues per customer, which I'm sure they do, I guess that they don't want to publish that, for some reason, which is why they don't.

That said, I agree that if they gave some indication of what the five new customers revenue might be, and when, it would be more encouraging than saying nothing about revenue.

[Rawz]

Yeah it's just a quarterly update though. Most companies don't even do that. Maybe on ASX they have to?

Last year Q3 update they gave guidance. "The Group is tracking to meet its FY23 guidance, with total revenue expected between $59.0 – 62.0 million and adjusted EBITDA between $8.5 – 9.5 million"

Wonder what's changed?? why cant they do this again this time around??? Hmmmm very strange
Maybe numbers for FY24 not shaping up to be very good. And they living in hope some big contract will save the day.

I dont know whats going on but my gut says something is not quite right. Last time I had this feeling with IKE (after they stopped reporting numbers) and the SP halved as the numbers turned out to be bad.

Ill continue to hold as its an immaterial holding. Just throwing some thoughts out there. Happy to be shot down

[Baa_Baa]

Yeah it's just a quarterly update though. Most companies don't even do that. Maybe on ASX they have to?

Not all companies "have to" on the ASX, provide quarterly 'Cash flow' updates (an Appendix 4C). They have rules about which companies have to. https://www.asx.com.au/documents/rules/Chapter04.pdf

The interesting thing imo is a quarter is only three months, which in business is less than a heartbeat, and TASK have closed three new customers and record McD's transactions, in just three months. Plus two new customers post quarter closing.

Incredible, TSK is on fire smashing out the deals. Best to get some before the ASX wakes up to 'their' latest tech darling. Back in the day, VML or PLX could move 50% or 100% in a day or two, traders love that. Hopefully TSK is a bit more long term and quietly kicks the goals.

[SailorRob]

Last year Q3 update they gave guidance. "The Group is tracking to meet its FY23 guidance, with total revenue expected between $59.0 – 62.0 million and adjusted EBITDA between $8.5 – 9.5 million"

Wonder what's changed?? why cant they do this again this time around??? Hmmmm very strange
Maybe numbers for FY24 not shaping up to be very good. And they living in hope some big contract will save the day.

I dont know whats going on but my gut says something is not quite right. Last time I had this feeling with IKE (after they stopped reporting numbers) and the SP halved as the numbers turned out to be bad.

Ill continue to hold as its an immaterial holding. Just throwing some thoughts out there. Happy to be shot down

No it's an excellent point that I will consider properly tomorrow.

Will compare last years with this year. As you say why can't they say they're tracking to meet guidance.

[winner69]

Hey Rawz ……I don’t think they’ve given any F24 guidance so couldn’t confirm lol

Anyway the value is in the story ……they kicking the goals and F25 revenue say $100m plus

At 5 times revenues that’s a share price of $1.40 in a years. Been there before so no problem

That’ll rocket them out of obscurity eh

[Rawz]

Hey Rawz ……I don’t think they’ve given any F24 guidance so couldn’t confirm lol

Anyway the value is in the story ……they kicking the goals and F25 revenue say $100m plus

At 5 times revenues that’s a share price of $1.40 in a years. Been there before so no problem

That’ll rocket them out of obscurity eh

Yes that's right. No guidance at all. Compared to last year they first put guidance out 1st Aug 2022 for the year ending 31 March 2023. So with 8 months of that year to go they were able to give shareholders a little idea of what to expect. Compare that to this financial year and there are only 2 months left to go and what... they trying to tell us they have no idea what final revenue is going to be??? Something not quite right aye

5X revenue was top of the bull market. Now we should be talking about 2.5x revenue as a lofty revenue multiple

TSK announcements not very good this year compared to last year.

[winner69]

Yes that's right. No guidance at all. Compared to last year they first put guidance out 1st Aug 2022 for the year ending 31 March 2023. So with 8 months of that year to go they were able to give shareholders a little idea of what to expect. Compare that to this financial year and there are only 2 months left to go and what... they trying to tell us they have no idea what final revenue is going to be??? Something not quite right aye

5X revenue was top of the bull market. Now we should be talking about 2.5x revenue as a lofty revenue multiple

TSK announcements not very good this year compared to last year.

Yes rawz, different ‘approach’ to guidance this year is a bit strange. Maybe they don’t wantsvto excite punters too much but then the quarterlies are full of exciting stuff

Still a worry they increasing spend more than the increase in receipts

[sunnysleeper11]

I wonder if large restaurant brands are put off TSK because of McDonald's part ownership..??

[Rawz]

Yes rawz, different ‘approach’ to guidance this year is a bit strange. Maybe they don’t wantsvto excite punters too much but then the quarterlies are full of exciting stuff

Still a worry they increasing spend more than the increase in receipts

I dont think the increase in spend vs receipts is a worry with the North Amercian expansion.

[SailorRob]

I dont think the increase in spend vs receipts is a worry with the North Amercian expansion.

Agreed, be worried if it wasn't like this.

[mfd]

I wonder if large restaurant brands are put off TSK because of McDonald's part ownership..??

When they signed up, plexure agreed to a list of other large restaurant brands that they would not do business with. I'm not sure if this was time-limited, or how it applies to Task as they are now.

[winner69]

Don’t forget Bell Potter had Task in its top picks for 2024

Share price up so far today ….heading in right direction

[Ggcc]

Don’t forget Bell Potter had Task in its top picks for 2024

Share price up so far today ….heading in right direction

Unfortunately there are 1 million shares at 42 cents for sale that might slow it down a little. Oh well, hopefully someone snaps them up relatively quick. Within 12 months the SP will be higher

[sunnysleeper11]

When they signed up, plexure agreed to a list of other large restaurant brands that they would not do business with. I'm not sure if this was time-limited, or how it applies to Task as they are now.

I'd love to know the list of banned companies. I imagine the list to be extensive. All fast food restaurants compete to be the meal of choice on any given day.

TSK are hopefully being inventive with broadening the scope of their offering to other industries.

Herbison wanted the Aus/NZ supermarkets to get their ticket clipped by Plexure - no doubt they politely declined. Haven't heard much about the Philippines supermarket chain that used Plexure..

[Baa_Baa]

I'd love to know the list of banned companies. I imagine the list to be extensive. All fast food restaurants compete to be the meal of choice on any given day.

Bear in mind this was about Plexure solutions, which pre-dates all of the TASK solutions. The list was never disclosed and might be smaller than you think, PLX signed up White Castle and Starbucks subsequently. Now TASK has and is signing up other QSR's in the USA.


TSK are hopefully being inventive with broadening the scope of their offering to other industries.

TASK is active in other markets than QSR, for example Stadiums and Casino's.


Herbison wanted the Aus/NZ supermarkets to get their ticket clipped by Plexure - no doubt they politely declined. Haven't heard much about the Philippines supermarket chain that used Plexure..

No progress was made in expanding into Supermarkets, the market/sector was dropped by Plexure. The supermarket that Plexure pulled out of was (if I recall correctly) in Indonesia. The transaction clipping has never been disclosed but it is possible that Plexure has some with McD's (notice the large increase in revenue from the recent contract re-sign). TASK will clip the ticket on the new MOP solution.

[SailorRob]

Last year Q3 update they gave guidance. "The Group is tracking to meet its FY23 guidance, with total revenue expected between $59.0 – 62.0 million and adjusted EBITDA between $8.5 – 9.5 million"

Wonder what's changed?? why cant they do this again this time around??? Hmmmm very strange
Maybe numbers for FY24 not shaping up to be very good. And they living in hope some big contract will save the day.

I dont know whats going on but my gut says something is not quite right. Last time I had this feeling with IKE (after they stopped reporting numbers) and the SP halved as the numbers turned out to be bad.

Ill continue to hold as its an immaterial holding. Just throwing some thoughts out there. Happy to be shot down


Yeah ok this is a great point.

The VERY first line from the Q3 last year was 'FY2023 guidance confirmed'

The very first line, the first thing they wanted to tell the owners.

Then 2 more sections on the topic. Ramming it down our throats.

This time - not a single mention. But loads of puffery about this and that.

Very well picked up Rawz.

Are they not in effect telling us that guidance is NOT confirmed?

[winner69]

Update doesn’t seem to have created much excitement on the market ….share price continues to languish around 40 cents with little sign of new punters entering

Maybe full year announcement will be trigger for a decent rise

[Greekwatchdog]

Update doesn’t seem to have created much excitement on the market ….share price continues to languish around 40 cents with little sign of new punters entering

Maybe full year announcement will be trigger for a decent rise

Well lets face it it will be better than the 2023 year alone if you consider renewed McDonalds contract had only 9 months in it. 2024 will have full benefit + all the other wins they have.

Who knows maybe we get guidance closer to the time, otherwise we wait for FY and then see some action.

[winner69]

Share price down so far today

some options lapsed though management need to try harder

Would’ve been good for all of us if the results had been better

[Rawz]

Well lets face it it will be better than the 2023 year alone if you consider renewed McDonalds contract had only 9 months in it. 2024 will have full benefit + all the other wins they have.

Who knows maybe we get guidance closer to the time, otherwise we wait for FY and then see some action.
Yes I agree surely this years revenue will be ahead of last years by at least low double digits. The full year of McD and other wins you just gotta think surely this year will be better than last years…

Which makes it even more bizarre how they haven’t provided any guidance. Like most companies would at least say revenue will be on par or above.. anything would be helpful

SP pop over and now any buying is just based on the story. I personally like to put a valuation on my investing of late. Even a dirty old revenue multiple. Can’t do that with TSK

[Baa_Baa]

I think people are over thinking the lack of guidance, while it would be nice, a surprise upside will be nicer, it's imo directly related to the surge in new customer signups that take time to implement.

Few company's disclose value of contracts, so it stands to reason that the new customers need to be implemented before the revenue is flowing. Giving guidance on existing customers would be easy, but the incremental new sales will distort any attempt to give guidance.

Patience, we'll all know the results soon enough. Meanwhile, the market continues to gift TSK shares.

[Cobber]

Somethings not right about their financials. I mean last financial year they did $62 million in rev but only $350k profit.

9 months into this financial year they are already at $62 million, but bleeding cashflow.

I'd love to buy in but a part of me thinks I'd be better off going to casino and putting it all on 'Black'. At least I'd know in 10 mins if I was a winner.

Seems like a lot of people selling out. What do they know that we don't??

[Ggcc]

Somethings not right about their financials. I mean last financial year they did $62 million in rev but only $350k profit.

9 months into this financial year they are already at $62 million, but bleeding cashflow.

I'd love to buy in but a part of me thinks I'd be better off going to casino and putting it all on 'Black'. At least I'd know in 10 mins if I was a winner.

Seems like a lot of people selling out. What do they know that we don't??
If you are in for a quick thrill this is not the share for you. Task is cashflow positive and has been for a while. I am very positive about their future, but do your own research.

[sb9]

Task being gobbled up by PAR tech (US based) for A$0.87 per share by way f scheme of arrangement.

[Rawz]

Well done to patient holders

[mfd]

That's a surprise. Decent premium, and the option to take half the payment as shares in PAR effectively at a discount.

Have been with them in varying degrees since the VMob days, quite a journey.

[Rawz]

BaaBaa and Ggcc will be happy. Big holdings in TSK. Happy for them

[winner69]

Suppose better than nothing but PAR getting a bargain eh

At least putting us out of our misery

Would have taken many years for share price to reach 80 cents

[Rawz]

Suppose better than nothing but PAR getting a bargain eh

At least putting us out of our misery

Would have taken many years for share price to reach 80 cents

where will you put your winnings W69?

TWR or FND? lol

[winner69]

where will you put your winnings W69?

TWR or FND? lol

OCA …next cab off rank lol

[Ggcc]

BaaBaa and Ggcc will be happy. Big holdings in TSK. Happy for them
I have still got to look through it. Am a bit stunned. This is a huge increase to my portfolio

[winner69]

Probably been Houden’s plan all along to hock off Task

He’s done well since getting Plexure to buy him out (sorry merge) just over 2 years ago …good on him

That $1.20 capital raise a while ago probably been forgotten by punters

[Ggcc]

Probably been Houden’s plan all along to hock off Task

He’s done well since getting Plexure to buy him out (sorry merge) just over 2 years ago …good on him

That $1.20 capital raise a while ago probably been forgotten by puntersYou can continue to go on the journey of you choose to. I need to look into this other company to be able to answer if I do.

[Curly]

You can continue to go on the journey of you choose to. I need to look into this other company to be able to answer if I do.
PAR, 97% below fair value, earnings to grow 105.8% PA.

[Curly]

You can continue to go on the journey of you choose to. I need to look into this other company to be able to answer if I do.
Oops, wrong Coy. Sorry.

[Joshuatree]

Thanks to Baabaa's posts for bringing this stock to my attention.👍

[winner69]

PAR shares done OK over last 12 months

[Ggcc]

https://www.youtube.com/watch?v=U2dcIXNANkI

https://www.youtube.com/watch?v=7SqYhJxQVTM

I do see this as being a really interesting next month in study. Initial thought is I am disappointed at the amount offered, as I feel Task will be that value AUD $0.80 ish within 18 months. Right now The Houdens are just getting a quick double on their money overnight and are not thinking what is best for shareholders. I own a load of these shares and feel conflicted. I made loads of money (on paper), but is this best for the company?

[Ggcc]

PAR shares done OK over last 12 months
Look at the last 3 years though and you could read another story.

[sb9]

https://www.youtube.com/watch?v=U2dcIXNANkI

https://www.youtube.com/watch?v=7SqYhJxQVTM

I do see this as being a really interesting next month in study. Initial thought is I am disappointed at the amount offered, as I feel Task will be that value AUD $0.80 ish within 18 months. Right now The Houdens are just getting a quick double on their money overnight and are not thinking what is best for shareholders. I own a load of these shares and feel conflicted. I made loads of money (on paper), but is this best for the company?

Similar thoughts. Was hoping this would be more than a buck in 2 yrs or so, didn’t expect the Board would recommend the scheme. Sure they could’ve negotiated better outcome for shareholders, guess they don’t care.

Bit of conundrum now, what to do with big payout. Haven’t got anything decent to invest under current market conditions.

[winner69]

So we’ll never know if Plexure/Task ever become a great company

[GraceW]

Does anyone know whom I should contact to find out the SRN for my holdings? Thanks

[Rawz]

TSK always had the huge promise of potential. But don’t forget about how avg Q3 update was. FY24 was turning out to be a bit of a avg year by all accounts.

Board and Houdens accepting this… well maybe that says it all. Maybe USA was tougher than they thought it would be and easier to take the money rather than battle there for years and years.

There are hundreds more microcaps on the ASX to have a sniff at. Don’t forget TWR lol

[usenet]

well it can be if you want to take the money and dump it all in PAR

[Pegasus2000]

Or take half profit and risk another half in PAR.

• Mixed Consideration - Alternatively, under the Scheme, TASK shareholders will have the opportunity to elect toreceive up to 50% of their consideration in shares of PAR common stock (PAR Shares) at a ratio of 0.015 PAR Sharesfor each TASK share held (Share Consideration) with the balance payable in Cash Consideration (MixedConsideration). Based on the closing price of PAR Shares on 8 March 2024 (Eastern Daylight Time) of $US43.41 perPAR Share, the Share Consideration implies a value of A$0.98 per TASK Share.

[Baa_Baa]

So we’ll never know if Plexure/Task ever become a great company

No, we won't will we. Another NZ success story, sold (bought!) to/by an Aus predator (at great cost to shareholders) and now being sold for a song a few months later.

Bloody disappointing the Houden elders capitulating for their 5x revenue multiple and a comfortable (very) retirement. Should've sold ages ago when this turned into a family business with old people as the majority owners.

In hindsight this was just their exit strategy and by gosh, they've executed it very cleverly, unlike us minnows who get a wee boost on their buy out share price and no realistic involvement with the future.

I'll be voting NO, but my shareholding won't make a dent in the concensus.

Looks like it's all over for me and TSK, unless some of the fine print conditions are triggered and this doesn't go ahead.

[Rawz]

If the Houden elders are capitulating then you don’t want to be around if it doesn’t go through..

[Greekwatchdog]

Not surprised this has happened, however very disappointed how Houden and Co have rolled over. I am guessing the new suitors got to look at the books and see how business is tracking (more than we have got to see) but it seems they just want out. Small Shareholders again get screwed. Of course I am happy with my win, but this had great potential and Task was only in its Infancy setting up the scale. I wonder how this impacts the MCDs contract.

Still good volume at high $0.70's on ASX today

[Ggcc]

Not surprised this has happened, however very disappointed how Houden and Co have rolled over. I am guessing the new suitors got to look at the books and see how business is tracking (more than we have got to see) but it seems they just want out. Small Shareholders again get screwed. Of course I am happy with my win, but this had great potential and Task was only in its Infancy setting up the scale. I wonder how this impacts the MCDs contract.

Still good volume at high $0.70's on ASX today
McDonald’s has agreed to the takeover as they needed their ok it to go further. McDonald’s has a history with PAR and is happy with the transaction. So that is maccas and the Houdens that approve the takeover, what percentage does it need to be to be fully agreed upon. I can see the share price going above 81 cents as PAR would prefer people having the shares rather than the cash.

[Greekwatchdog]

McDonald’s has agreed to the takeover as they needed their ok it to go further. McDonald’s has a history with PAR and is happy with the transaction. So that is maccas and the Houdens that approve the takeover, what percentage does it need to be to be fully agreed upon

Thanks for highlighting, obviously missed that. New glasses aren't working obviously.

[Ggcc]

Thanks for highlighting, obviously missed that. New glasses aren't working obviously.
It was never mentioned. I rang one of the directors and they mentioned this. It has been discussed by directors before that they really can’t do lots unless maccas say yes

[Greekwatchdog]

It was never mentioned. I rang one of the directors and they mentioned this. It has been discussed by directors before that they really can’t do lots unless maccas say yes

LOL then I am not blind. I would have thought that would have been mentioned? Thank you for asking and sharing.

Anyway as far as I am concerned the deal is done unless someone else wants Task

[Schrodinger]

A few points from me:

1. Obviously the offer is low but the offer of shares makes it interesting. We are at the bottom of the cycle valuations wise so keep that in mind. It is expected revenue will be north of $80m this year. New contracts have been won.
2. ‘Independent” valuation comes out above the offer price will they increase their offer? Task may hit $100m in revenue in 2025/26 valuing them above $500m imho…
3. Competing bids - there is room and will one happen?
4. Why did the major shareholder(s) endorse this bid before the independent valuation? Even at 4x multiple I think it is low 5x-6x is more reasonable.
5. There is significant USA upside for Task given the strong links to Starbucks and McDs (check McDs share price over last 10 yrs) and selling now will mean shareholders may miss the party.

[Schrodinger]

AFR today:

The Houden family which founded ASX minnow Task Group more than two decades ago stand to realise a $114 million pay day after a US rival offered to buy the company for $310 million. Task, which makes software for quick service restaurants such as McDonald’s, revealed the takeover offer from New York-listed PAR Technology Corp at 81¢ a share on Monday, more than double the stock’s last closing price.

Shareholders can opt for a cash option of 81¢ a share – a 103 per cent premium on Friday’s 40¢ close – or a mix of cash and PAR shares. Based on the last traded price of PAR shares of $US43.41, the scrip-blended consideration implies a value of 98¢ per Task share.
Founded by husband and wife Kym and Jenny Houden in a Sydney garage in 2000, the family still own around 36 per cent of Task and plan to convert 50 per cent of their stake into PAR scrip. “We feel very strongly about the opportunity ahead of us and our ability to add value to the PAR organisation in the US,” said Dan Houden, chief executive of Task.

The deal comes amid a flurry of M&A in the software sector, which has seen the likes of Whispir (https://www.afr.com/technology/from-500m-to-75m-founder-s-deep-regret-as-bidding-war-ends-20231208-p5eq7g), Altium (https://www.afr.com/technology/altium-soars-on-9b-takeover-offer-after-torrid-ride-20240215-p5f55h) and Ansarada (https://www.afr.com/technology/founder-takes-a-500-000-gamble-to-land-a-236m-deal-20240216-p5f5jk) become takeover targets. Shares in Task, which makes point of sale and loyalty software for customers including Guzman y Gomez, Starbucks and Retail Food Group, jumped to 93 per cent to 78¢ on Monday.

Task arrived on the ASX after it was acquired by New Zealand marketing software company Plexure Group, the digital name behind the McDonald’s app, for $120 million in October 2021. The deal gave Task’s shareholders 43 per cent ownership in Plexure.
As part of the merger, early Task employees were given around $20 million worth of stock, or around 4 per cent of the combined company.
Dan Houden, who has taken over running the family business alongside his brother Dean, said the merger invited a wave of interest from potential acquirers.


“We embarked on the turnaround of Plexure and started to get a little bit of attention from a bunch of multinationals… I said, ‘look, I’m servicing a plane while it’s in the air, let’s get through this’,” the CEO said.
Since then, the company achieved a net profit of $NZ400,000 ($370,000) last financial year, narrowing from a loss of $NZ24.3 million a year earlier, and renegotiated a five-year deal with McDonald’s across its international markets.

After that was completed, we looked at what the next phase of growth looked like… and that resulted in this deal that we announced today.” PAR is a $US1.22 billion ($1.84 billion) company that makes hardware and software used in more than 70,000 restaurants in 110 countries.


MrHouden said joining forces with a much larger global player would help Task grow.“It offers Task a better base on which to achieve its international ambitions, provides a strong group with significant opportunities for our employees and provides certainty for our shareholders who have supported the growth of Task to become a meaningful player in the global retail software market,” he said.

[Greekwatchdog]

Thank you for posting

[Schrodinger]

“Little bit of attention from multi nationals” is the interesting part..

according to Hot Copper the deal falls through if PAR shares fall below $35 (and below 18% scrip uptake)- fingers crossed

[Schrodinger]

No, we won't will we. Another NZ success story, sold (bought!) to/by an Aus predator (at great cost to shareholders) and now being sold for a song a few months later.

Bloody disappointing the Houden elders capitulating for their 5x revenue multiple and a comfortable (very) retirement. Should've sold ages ago when this turned into a family business with old people as the majority owners.

In hindsight this was just their exit strategy and by gosh, they've executed it very cleverly, unlike us minnows who get a wee boost on their buy out share price and no realistic involvement with the future.

I'll be voting NO, but my shareholding won't make a dent in the concensus.

Looks like it's all over for me and TSK, unless some of the fine print conditions are triggered and this doesn't go ahead.

The best deal if you accept is the PAR shares which will benefit from TASK upside potential. I don’t like the offer butI am favouring the 50% cash and scrip if forced.

[Baa_Baa]

The best deal if you accept is the PAR shares which will benefit from TASK upside potential. I don’t like the offer butI am favouring the 50% cash and scrip if forced.

PAR might benefit, but let's face it, TSK are a rounding error on PAR's revenue. PAR are basically (imho) just trying to buy the McD's client base and get a few much smaller clients with it. They'll also get a new tech stack which they can pick and choose from, as to whether they incorporate it over time, or ditch some it if they have something better.

My hangup is that until yesterday, I had only known of PAR as a competitor to TSK/PLX, but I'd never considered investing in them. Now I'm offered up to 50% of my share holding in PAR script, or a payout of 100%. It'll take a while to get my head around whether PAR is a good investment or not, but either way I don't think adding TSK is much more than acquiring the lions share of McD's, which we already have!

Anyway, having read the fine print, this deal is like swiss cheese, there are a lot of little gotcha's that if not satisfied, the deal is off. I'd expect quite a few folks to sell out on market while the SP will hover around the buyout price.

And I don't think I'll get over that the TSK Board have endorsed an offer as cheap as $AU 0.81, less than half what PLX was a while ago. Just shows they're weak and beholden to the Houden elders.

[Ggcc]

https://www.investing.com/news/stock-market-news/par-technology-shares-target-lifted-by-analyst-on-ma-prospects-93CH-3334576

I can definitely see this share getting over 0.81 AUD cents on market in the near future

[dln]

PAR have been at it a long time to still be "aiming for profitability" ...

[winner69]

PAR have been at it a long time to still be "aiming for profitability" ...


Just like Task eh

[Rawz]

Both PAR and TSK not profitable.

PAR trading 3x revenue and paid 5x revenue for TSK.

Looks like they overpaid

[Ggcc]

Just like Task eh
Unlike me aye lol

[winner69]

Both PAR and TSK not profitable.

PAR trading 3x revenue and paid 5x revenue for TSK.

Looks like they overpaid


Makes you wonder why anybody would pay 5 times revenue for an outfit that will never make much money

Oh well, that’s how the world goes these days

[Ggcc]

Makes you wonder why anybody would pay 5 times revenue for an outfit that will never make much money

Oh well, that’s how the world goes these days

I am not sure if to invest further into the Task journey, but how long did Amazon run without profit?

[Rawz]

I am not sure if to invest further into the Task journey, but how long did Amazon run without profit?

Cant compare TSK to Amazon.
Be like saying how long has PEB run without profit? lol

Amazon a very special company. One of those 1 in 100 year companies. Most non profitable companies are a PEB

[winner69]

I am not sure if to invest further into the Task journey, but how long did Amazon run without profit?

Task been going nearly 25 years and Plexure about 15 years so there’s hope yet

[Ggcc]

Task been going nearly 25 years and Plexure about 15 years so there’s hope yet
There is no secret without Task, Plexure would have been capital raise after capital raise or doomed. Since Task management at the helm, they have been aiming for cash flow positive. That is when I bought in big from 15 cents, after letting my fingers do the walking ( I already owned my shares at an average of about $1.05). It’s about seeing the changes and acting fast if you acknowledge these. Sometimes you see what you want to see and sometimes you wear rose tinted glasses.

I feel I got it right with Task, but PAR is another kettle of fish with another kettle of investor. NZ investors are worried about short term performances rather than longterm future goals. Look at Xero I still can’t fathom it being worth as much as it is but hey, I am wrong and the market is right.

[whatsup]

There is no secret without Task, Plexure would have been capital raise after capital raise or doomed. Since Task management at the helm, they have been aiming for cash flow positive. That is when I bought in big from 15 cents, after letting my fingers do the walking ( I already owned my shares at an average of about $1.05). It’s about seeing the changes and acting fast if you acknowledge these. Sometimes you see what you want to see and sometimes you wear rose tinted glasses.

I feel I got it right with Task, but PAR is another kettle of fish with another kettle of investor. NZ investors are worried about short term performances rather than longterm future goals. Look at Xero I still can’t fathom it being worth as much as it is but hey, I am wrong and the market is right.

Gg, well done that man, any others fall into that category ?

[Zding]

NEW HARTFORD, N.Y.--(BUSINESS WIRE (https://www.businesswire.com/))--PAR Technology Corporation (NYSE: PAR) (the “Company” or “PAR”), a global foodservice technology company and provider of unified commerce for enterprise restaurant brands, today announced two transactions that expand its cloud-based unified commerce software offerings into convenience stores and fuel retailers, as well as international markets. PAR has entered into an agreement to acquire TASK Group for cash and PAR common stock at an implied value of approximately $206 million assuming an all-cash transaction, and has completed its acquisition of Stuzo Holdings, LLC for approximately $190 million paid in cash and stock. The closing of the TASK acquisition is expected to occur in the third quarter of 2024, subject to TASK shareholder approval, Australian court approval, certain regulatory approvals and other customary closing conditions.



Stuzo (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.stuzo.com%2F&esheet=53907873&newsitemid=20240311033268&lan=en-US&anchor=Stuzo&index=3&md5=1d8b8385168a64b3b8593d221ce2ea53&_gl=1*1rjeanx*_ga*MTE3Mjk4MDUwOS4xNzEwMjQ0MDkx*_ga _ZQWF70T3FK*MTcxMDI4MTI1Ni4yLjAuMTcxMDI4MTI1Ni42MC 4wLjA.), a digital engagement software provider to Convenience and Fuel Retailers (C-Stores), including its Open Commerce® Platform, empowers C-Stores to gain more share of the customer wallet and drive customer lifetime value. This acquisition strengthens PAR’s business strategy to expand its available market by addressing an expanding foodservice market with a ‘best of breed’ platform that is highly profitable. With Stuzo, PAR is now a leader in technology for convenience and fuel retailers with over 25,000 sites and substantial opportunities for innovation in the C-Store industry.

[Schrodinger]

What are the thoughts on the 81c vs 98c arbitrage opportunity assuming the 50% PAR shares offer goes through.

[Schrodinger]

Recent Pushpay experience with "independent" valuations:

https://www.nbr.co.nz/investment/pushpay-takeover-offer-at-bottom-end-of-independent-valuation/

A $1.34 a share takeover offer for dual-listed church payment and management software company Pushpay is at the bottom end of an independent adviser’s valuation, newly released documents say.
Last October, the company’s board recommended shareholders accept the takeover offer, which valued the company at $1.539 billion.
That was a 13% premium to before the company went into a trading halt in October and a 30.1% premium to its ‘undisturbed’ price of $1.03 a share (the price before the company first disclosed expressions of interest in April (https://www.nbr.co.nz/investment/pushpay-takeover-could-be-worth-2b-analyst-says/)).
The offer was from Aussie PE BGH Capital and US shareholder Sixth Street, which already have a combined 20.3% interest in Pushpay after striking an agreement in May (https://www.nbr.co.nz/pushpay-in-trading-halt-as-aussie-pe-lines-up-takeover-bid/).
The Pushpay board said at the time the offer provided “compelling value” for shareholders and unanimously recommended its approval after testing “a broad range of other potentially interested parties”. >>>sound familiar??

NZ's Pushpay gets higher $1 bln bid from BGH Capital-Sixth Street consortium

Reuters
March 16, 202311:16 AM GMT+13Updated a year ago

March 16 (Reuters) - New Zealand's Pushpay Holdings Ltd (PPH.NZ) (https://www.reuters.com/companies/PPH.NZ/) on Thursday received a higher NZ$1.62 billion ($1.00 billion) buyout offer from a consortium that included investment firms Sixth Street and BGH Capital, sending the payments company's shares up nearly 14%.
The consortium, formally known as Pegasus Bidco Ltd, has now offered to pay NZ$1.42 per Pushpay share, compared with its previous offer of NZ$1.34 apiece which was rejected (https://www.reuters.com/markets/deals/shareholders-reject-nzs-pushpays-953-mln-buyout-2023-03-03/) by the company's shareholders earlier this month.

The new offer represents a 15.4% premium to Pushpay's last close.
The previous offer required at least 75% of shareholders not associated with either Sixth Street or BGH Capital to vote in favour, but only 55.54% did.
The consortium has now entered into commitments with a number of the company's shareholders to vote in favour of the new offer, Auckland-based Pushpay said.
Pushpay also recommended that shareholders vote in favour of the revised bid.

The company's shares rose to NZ$1.40, highest in eight months.

[winner69]

PAR share price going up ……the 50/50 offer getting closer to $1.00

[Curly]

Huge volume over the past two days, well over normal daily average. Can understand sellers in for quick one bagger but that there are plenty buying and price increases suggests that 50/50 option being preferred. Buyers seeing value in entry in to PAR through the TSK take over. PAR share price inches forward on euphoria of new acquisition. If PAR sp continues to rise TSK sp may well exceed the .81c cash offer. Watching with interest.

[sb9]

I'm in the same boat here, not selling any of mine anytime soon. Watch from sidelines for now.

[Greekwatchdog]

Good Volumes going thru at $0.80. All that for $0.01? Someone accumulating??

[mfd]

0.01, plus the value of the implied option on PAR. The split offer becomes more valuable than the cash offer if PAR's share price increases.

[blobbles]

0.01, plus the value of the implied option on PAR. The split offer becomes more valuable than the cash offer if PAR's share price increases.

Surely some smart cookie here, depending on the announcement and PAR share price, would be buying everything up to 90-95% of PARs option value? Given many would want to sell and realise a decent profit, giving say a 10c premium over the 81c makes a lot of sense for both parties? Too risky?

[dln]

DOH.
https://www.stuff.co.nz/food-drink/350214626/we-cant-take-orders-computer-outage-impacts-mcdonalds-nz-australia-and-japan

Sold all mine today.

[SausageDog]

I sold out today as well,I have a feeling this will end badly. A profit is a profit , hope I’m wrong.

[dln]

A bird in the bed is worth two in the bushes.

[anthonyb92]

DOH.
https://www.stuff.co.nz/food-drink/350214626/we-cant-take-orders-computer-outage-impacts-mcdonalds-nz-australia-and-japan

Sold all mine today.

Task doesn't run McDonalds POS software... DOH.

[Curly]

So if your sale of shares (AUD$) exceeds the $50,000.00nz threshold, are you caught by FIF tax regime at 5%?

[SausageDog]

Foreign Investment Fund (FIF) tax rules apply when the cost price of your overseas investments tips over $50,000 NZD, even if it’s just for one day. A few things to note:

The $50,000 NZD threshold is not based on the market value of your investments; it’s the cost price (what you paid for them) and doesn’t include any gains or losses

[Ggcc]

Not quite correct and I advise anyone to see accountant before understanding any FIF rules

[Ggcc]

DOH.
https://www.stuff.co.nz/food-drink/350214626/we-cant-take-orders-computer-outage-impacts-mcdonalds-nz-australia-and-japan

Sold all mine today.

Confirmed as nothing to do with Task or Plexure

[Antipodean]

https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir400---ir499/ir461/ir461-2022.pdf

[Baa_Baa]

https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir400---ir499/ir461/ir461-2022.pdf

That's not as helpful as it might imply, there is a FIF Exempt Tool in it, but unfortunately it does not cover the current tax year (ends March 2023). They qualified as FIF exempt upto 31 March 2023 because they were a NZ company listed in ASX. TASK however was removed from the NZ Companies Register in Sept 2023, mid way through the FY. The PAR acquisition will not occur until the FY2024/25 year so TSK have at least 6 months as a Aus company listed on the ASX (implying no FIF exemption). It is not clear from the IRD FIF guide rules though. Best maybe to ask your accountant, FIF (on the ASX holding) may have kicked in from Sept 2023 and continue until a PAR acquisition is completed. Even then, if a shareholder takes up the PAR shares, presumably that will fall into FIF as well but on the US exchange.

If anyone gets a qualified opinion and is prepared to share it here, that would be appreciated. TIA.

[dln]

I'm under the limit, so don't have a horse in this race.

[Antipodean]

That's not as helpful as it might imply, ...

All fair points, noted. Should only be the starting point and your accountant should be able to go into further detail

[Curly]

PAR ends @ $45.08, high $45.30. Further increase expected tomorrow with after hours price $46.64. Twelve month prediction for PAR price $51.43 - high $66. Guess we can expect tandem increase in TSK price as the PAR price increases to gain cheap entry into PAR. Time will tell.

[Greekwatchdog]

I sold out @ $.795 aud. today. 125% profit so I am happy.

Will happily buy back in should they deal fall over for whatever reason, however I hope not for all you patient holders or those of you taking a slice of PAR.

Thanks to you all for your thoughts. Baa Baa and GGCC in particular for your in depth contributions.

Happy Easter to you all GWD

[Ggcc]

I sold out @ $.795 aud. today. 125% profit so I am happy.

Will happily buy back in should they deal fall over for whatever reason, however I hope not for all you patient holders or those of you taking a slice of PAR.

Thanks to you all for your thoughts. Baa Baa and GGCC in particular for your in depth contributions.

Happy Easter to you all GWD
All good. I reluctantly sold most of mine at 79.5 cents and have completely sold out now. Some of the funds have already been allocated, but I am still looking where to relocate the remainder of the funds.

[Greekwatchdog]

All good. I reluctantly sold most of mine at 79.5 cents and have completely sold out now. Some of the funds have already been allocated, but I am still looking where to relocate the remainder of the funds.

Yes same, I have a dozen stocks on my watch list. Will watch patiently over next 3/4 weeks.

[Ggcc]

Yes same, I have a dozen stocks on my watch list. Will watch patiently over next 3/4 weeks.

So far I bought some more IFT and HGH. I still have loads more on my waitlist. No rush

[sb9]

I've still not made up my mind whether to sell or not. Will wait and watch for now..

[sb9]

Currently trading at offer price of 81c, wonder if its got further legs to go....

[Walter]

Currently trading at offer price of 81c, wonder if its got further legs to go....
Isn't the offer price closer to AU$1 if you accept part payment in PAR shares?

[Joshuatree]

Currently trading at offer price of 81c, wonder if its got further legs to go....

I've taken my bat and ball at 81c and moved on.

[carpfish]

Significant volume trading at 0.80 - 0.815
Will be an interesting few weeks. Looks like some deep pockets have figured out there’s plenty of upside from here with the PAR deal.

[kiwical]

Currently trading at offer price of 81c, wonder if its got further legs to go....The international law of investing states that if you wait for further price increase it will drop, if you sell it will rise further. Have you made a decent profit at 81c? If so I say sell it and enjoy the extra pingers in your pocket.

[Mel]

Well said Kiwical :)

[Schrodinger]

The international law of investing states that if you wait for further price increase it will drop, if you sell it will rise further. Have you made a decent profit at 81c? If so I say sell it and enjoy the extra pingers in your pocket.

Three things im looking at:

1. "Independent Valuation" which should value the company higher than purchase price - do they have some AI buzz words in the report for predicting ordering? =)
2. A potential higher bid and/or another offer. TSK gets to $80-90m revenue x5 = $450m valuation? Then next year they go to $100m+= $500m valuation? ($1.10-1.20+++???)
3. Cash + scrip arbitrage is good value particularly if you believe there is good growth in PAR. Acquisitions usually mean the company has good growth prospects.

Even if the deal falls through - I still believe the growth story so the market will eventually match the fundamentals.

[sb9]

Three things im looking at:

1. "Independent Valuation" which should value the company higher than purchase price - do they have some AI buzz words in the report for predicting ordering? =)
2. A potential higher bid and/or another offer. TSK gets to $80-90m revenue x5 = $450m valuation? Then next year they go to $100m+= $500m valuation? ($1.10-1.20+++???)
3. Cash + scrip arbitrage is good value particularly if you believe there is good growth in PAR. Acquisitions usually mean the company has good growth prospects.

Even if the deal falls through - I still believe the growth story so the market will eventually match the fundamentals.


Seems that way the way its trading currently. Someone sees more value at current level, which is higher than offer price.

[sb9]

The international law of investing states that if you wait for further price increase it will drop, if you sell it will rise further. Have you made a decent profit at 81c? If so I say sell it and enjoy the extra pingers in your pocket.

Happy to wait and watch from sidelines for now...

[sb9]

Isn't the offer price closer to AU$1 if you accept part payment in PAR shares?

Something around that I think and the higher PAR price keeps going up, obviously higher price for your TSK shares provided you still holding.

[Baa_Baa]

Seems that way the way its trading currently. Someone sees more value at current level, which is higher than offer price.

Maybe it takes a while to sink in. If a shareholder takes the full buyout at A$0.81, it's a lot less than the implied valuation of taking 50% buyout and the remainder in PAR shares. From their announcement, you can see the delta:



Cash Consideration - Under the Scheme, TASK shareholders will have the opportunity to elect to receive consideration of 100% cash at a price of A$0.81 per TASK Share (Cash Consideration). The Cash Consideration represents a 103% premium to the TASK closing price of A$0.40 per share on 8 March 2024 and a 107% premium to the 30-day volume weighted average price.

Mixed Consideration - Alternatively, under the Scheme, TASK shareholders will have the opportunity to elect to receive up to 50% of their consideration in shares of PAR common stock (PAR Shares) at a ratio of 0.015 PAR Shares for each TASK share held (Share Consideration) with the balance payable in Cash Consideration (Mixed Consideration). Based on the closing price of PAR Shares on 8 March 2024 (Eastern Daylight Time) of $US43.41 per PAR Share, the Share Consideration implies a value of A$0.98 per TASK Share.





The buyout might not even happen, one needs to dig into all the conditions, but ... SP at A$0.81 selling out now, misses the potential upside of the "mixed consideration". Given also the lengthy timeframe, TSK could, on market potentially close that gap significantly.

And remember, if you sell now into market you incur the trading fees, whereas just letting the buyout happen and taking up the full 50% PAR consideration, you don't pay any trading fees.

[whatsup]

Maybe it takes a while to sink in. If a shareholder takes the full buyout at A$0.81, it's a lot less than the implied valuation of taking 50% buyout and the remainder in PAR shares. From their announcement, you can see the delta:



Cash Consideration - Under the Scheme, TASK shareholders will have the opportunity to elect to receive consideration of 100% cash at a price of A$0.81 per TASK Share (Cash Consideration). The Cash Consideration represents a 103% premium to the TASK closing price of A$0.40 per share on 8 March 2024 and a 107% premium to the 30-day volume weighted average price.

Mixed Consideration - Alternatively, under the Scheme, TASK shareholders will have the opportunity to elect to receive up to 50% of their consideration in shares of PAR common stock (PAR Shares) at a ratio of 0.015 PAR Shares for each TASK share held (Share Consideration) with the balance payable in Cash Consideration (Mixed Consideration). Based on the closing price of PAR Shares on 8 March 2024 (Eastern Daylight Time) of $US43.41 per PAR Share, the Share Consideration implies a value of A$0.98 per TASK Share.





The buyout might not even happen, one needs to dig into all the conditions, but ... SP at A$0.81 selling out now, misses the potential upside of the "mixed consideration". Given also the lengthy timeframe, TSK could, on market potentially close that gap significantly.

And remember, if you sell now into market you incur the trading fees, whereas just letting the buyout happen and taking up the full 50% PAR consideration, you don't pay any trading fees.

or tax!! out of the tax mans clutches.

[Baa_Baa]

or tax!! out of the tax mans clutches.

Excellent point, avoiding potential trading tax on capital gains at your marginal tax rate. If it was your choice to sell, and you did, despite the circumstances, who knows how the IRD will interpret that? If you don't 'choose' to sell, but are bought out somewhere between 50-100% against your will, that wasn't a self-motivated sell and should be tax free of capital gains. But who knows really how the IRD works, most people seem to be minnows to them and fly under the radar, until they're caught.

[Joshuatree]

Mkt Screener have 4 buy reccos one outperform ,5 holds.Average price target $51.43 ,current price $44.72. Good luck to those holding through I dont want to hold PAR and have a better use for the funds right now.Also any risks are not a prob for me hereon..Brokerage for USA co's can be higher too.

[carpfish]

Continuing it’s creep up

[blobbles]

Come on guys, up your offer: https://nz.finance.yahoo.com/news/task-signs-sushi-sushi-deliver-024000163.html

[Ggcc]

Come on guys, up your offer: https://nz.finance.yahoo.com/news/task-signs-sushi-sushi-deliver-024000163.html
If the deal falls through, the company has pissed many investors off including what I believe some on the board. Short sighted and ready to sell to just about anyone (as long as McDonald’s agreed) for a quick buck due to the biggest shareholders wanting the quick fix. All the best to current shareholders

[aperitif]

https://youtu.be/QJwC4gImK4U?si=NAorhPc1mInPBAqp

Podcast on PAR

[sb9]

Sold about half of my holdings at 83c today. Big question where to invest the proceedings, NZX stocks seem to crap atm to invest. Prices are bargain for some stocks, but the business outlook for NZ Inc is terrible for ensuing 6-12 months. Might wait and watch for a while.

[Ggcc]

Sold about half of my holdings at 83c today. Big question where to invest the proceedings, NZX stocks seem to crap atm to invest. Prices are bargain for some stocks, but the business outlook for NZ Inc is terrible for ensuing 6-12 months. Might wait and watch for a while.
Well done and sad at the same time. A sentiment I think is shared amongst a lot of us

[Baa_Baa]

Well done and sad at the same time. A sentiment I think is shared amongst a lot of us

I haven't sold mine yet, I think this might creep up to the 90's which is the post-acquisition PAR value, assuming it goes ahead. Agree there's a lot of underpriced stocks on the NZX, but choosing which is more troublesome.

[Ggcc]

I haven't sold mine yet, I think this might creep up to the 90's which is the post-acquisition PAR value, assuming it goes ahead. Agree there's a lot of underpriced stocks on the NZX, but choosing which is more troublesome.
I think you might be correct and here is hoping for you it does!! I hopped out earlier and redistributed some of my money into ATM, HGH (@ $1 per share), IFT, plus I bought a small parcel in SPY to add to what I already had and a small parcel on BPG. I still have cash, but am happy for now just to hold onto that for now.

[ValueNZ]

I haven't sold mine yet, I think this might creep up to the 90's which is the post-acquisition PAR value, assuming it goes ahead. Agree there's a lot of underpriced stocks on the NZX, but choosing which is more troublesome.
BaaBaa, I'd be interested in hearing which NZX stocks are cheap in your opinion other than the RV industry. I (mostly) gave up even looking at NZX shares at some point last year, because everything I looked at disappointed me.

[sb9]

I haven't sold mine yet, I think this might creep up to the 90's which is the post-acquisition PAR value, assuming it goes ahead. Agree there's a lot of underpriced stocks on the NZX, but choosing which is more troublesome.

Looks that way going by current price of PAR, which closed on US markets at 46.70.

Will await for 90s range for TSK to exit my remaining holding.

[Schrodinger]

What's with the report delay are they ramping the suggested valuation up to $1+ share?

[Schrodinger]

$0.86 and climbing

[Baa_Baa]

$0.86 and climbing

PAR had a massive day on NYSE up $2.95 6.3% to $49.65

"Cloud-based hardware and software solutions provider PAR Technology (NYSE:PAR (https://seekingalpha.com/symbol/PAR?hasComeFromMpArticle=false&source=content_type%253Areact%257Csection%253Amain _content%257Cbutton%253Abody_link%257Cfirst_level_ url%253Anews)) was moving higher Wednesday noon as Benchmark upgraded the stock to Buy, with a price target of $59." https://seekingalpha.com/news/4109434-par-technology-moves-higher-as-benchmark-upgrades

[sb9]

PAR had a massive day on NYSE up $2.95 6.3% to $49.65

"Cloud-based hardware and software solutions provider PAR Technology (NYSE:PAR (https://seekingalpha.com/symbol/PAR?hasComeFromMpArticle=false&source=content_type%253Areact%257Csection%253Amain _content%257Cbutton%253Abody_link%257Cfirst_level_ url%253Anews)) was moving higher Wednesday noon as Benchmark upgraded the stock to Buy, with a price target of $59." https://seekingalpha.com/news/4109434-par-technology-moves-higher-as-benchmark-upgrades

Based on that TP, surely a buck is not out of question for TSK.

[Schrodinger]

The scheme booklet undervalues TSK - the comparatives dont talk about growth rates of each of the companies. The lowest multiples are for the slower growth companies. The forecasts for 2024 revenue are very strong. The revenue multiples are comically low.

PAR gets a full developed loyalty engine with a huge installed base (they dont have a credible one) for a very cheap price. Dont let the USA steal the company.

[Greekwatchdog]

Full Year Result out
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02812604-2A1526176

[Pegasus2000]

Anyone makes up mind to sell or take 50% each? I am not sure if PAR will have the future.

[Ggcc]

Anyone makes up mind to sell or take 50% each? I am not sure if PAR will have the future.
I don't know enough about PAR to comment, but the management of Task have let down me, as a shareholder for the quick benefit of the Houdens.

I asked Dan this question late 2023.

I am looking forward to the 6 month update and feel the share price is highly undervalued which hopefully will change after the 6 month announcement. I will be buying more if the share price keeps dropping. Another issue is if it carries on dropping, Task could be getting interest for a takeover offer which would not benefit long term shareholders.

Dan's response

Unfortunately, I can't comment on some of the specifics but what I can say is that given our share register and the largest shareholders interests, in my opinion we are well placed to prevent a hostile approach.

Look forward to providing more details at the interim.

80 cents is a steal for a takeover of Task and I do understand that I may have missed out on a bargain with PAR, but I don't like owning US shares, especially when FIF tax applies.

[Baa_Baa]

I'm out, after many years, managed to get a $0.845 exit which is above the buy out price of $0.82, and after looking into PAR in detail, even although they might do well, who knows, I don't want any of them.

GLTAH, I'm gone.

[Pegasus2000]

Thanks very much Baa_Baa and Ggcc for the thoughts.

[aperitif]

Voss Capital on Par Tachnology.These guys are seriously switched on.

https://vosscapital.substack.com/p/pars-path-to-80-redux" (https://vosscapital.substack.com/p/pars-path-to-80-redux")

We have reentered PAR in a major way, making it an ~8% position at cost, buying in at a discount to the market pricein a recent PIPE that was done to fund two key TAM expanding acquisitions. The new management team spent thelast few years building a comprehensive restaurant technology platform just in time for an explosion of enterpriselevel RFPs. The bull case laid out by us and other vocal investors over the last few years is finally coming into focus.We believe PAR is poised to emerge as one of a few winners in the global restaurant POS and software market andwill be the primary winner in the very sticky, counter-cyclical enterprise market. The market especially loves techstocks that go from unprofitable to profitable, which we believe PAR will demonstrate on a sustainable basis withinthe next two quarters. In addition to the inflection in profitability, we believe there are several tangible catalysts onthe horizon, including a sale of their unrelated Government business (simplifying the company to a restaurant techpureplay), announcements of new Tier 1 wins that will accelerate organic ARR growth, and an investor day this Fall.Our base case price target is $80 (~90% upside), using 5x our 2026 sales estimate, a conservative ~40% discountto the most directly relevant trading comp AGYS (which is valued at 8.5x 2026 consensus sales despite growingsignificantly more slowly than PAR)."

[Rawz]

the old 5x sales trick.

[aperitif]

https://jpmorgan.metameetings.net/events/tmc24/sessions/51417-par-technology-corporation/webcast

Nice to hear the Houden family rolling their stake into PAR

[sb9]

Not quite sure if I want to sell my remaining 50% or roll them into PAR, conundrum..

[Pegasus2000]

One probably silly question, can we still sell the shares of TSK before 28 June?

[Snow Leopard]

One probably silly question, can we still sell the shares of TSK before 28 June?

Yes & yes :)

June 28 is just the day that the vote to accept offer happens.
If that passes then a last trading date will be set.

[Baa_Baa]

You all probably saw this notice earlier in the week (https://hotcopper.com.au/threads/ann-change-of-directors-interest-notice-p-norman.8046750/) (click the link), about Phil Norman the previous Chair and a current Non-Executive Director unloading a large pile of shares.

Since I sold mine, I didn't bother reconciling how many of his holdings that he sold, but I got this notice from SimplyWall St today:

"

Independent Non-Executive Director recently sold AU$3.8m worth of stock


On the 11th of June, Philip Norman sold around 5m shares on-market at roughly AU$0.82 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade.

This was the largest sale by an insider in the last 3 months.
Insiders have been net sellers, collectively disposing of AU$3.7m more than they bought in the last 12 months."





Not good look imo when Phil, who has been around for donkey's years, has decided to quit TSK (and who before that were VML and PLX). He's happy to get out before the buyout at $AU 0.82 and doesn't want any part of a share in PAR.

Why is this interesting? Well, it's interesting to me because Phil has been there for many many years, currently is a non-Exec Director and a past Chairman of the company for many years. He obviously sees that it's all over for TSK, and his shareholding. (nice payout for him by the way, it's been all worth it)

The company however has said ALL Directors are in favour of the buyout by PAR. Well it seems that not all of them are in favour and have voted already with their shares prior to the buyout being approved by shareholders, or it happening.

Imo think carefully whether you holders are happy with being wholly forced into a buy out at $AU 0.82, or taking up the offer of 50% buyout and the other 50% in PAR Technologies.

There's not much time left to make a decision, and with an ASX market close at $0.855, the opportunity is there to beat the buyout offer of $AU0.82 if you want it.

After that, TSK will cease to exist, if shareholders approve the PAR buyout offer, and frankly, it's a given that the buyout will happen as the largest shareholders by far (the Houden family) support this exit strategy, for themselves.

[Baa_Baa]

Oops, actually it looks like SimplyWall St has got the maths wrong, Phil has sold a lot of shares, about 50%, but not all of them.

Need to look into the details a bit more, but he's unloaded a small truckload.

Actually on seconds thoughts, I don't care, there's a non-exec Director who is voting with his shares before the vote to sell the company. That's enough for me.

[RupertBear]

You all probably saw this notice earlier in the week (https://hotcopper.com.au/threads/ann-change-of-directors-interest-notice-p-norman.8046750/) (click the link), about Phil Norman the previous Chair and a current Non-Executive Director unloading a large pile of shares.

Since I sold mine, I didn't bother reconciling how many of his holdings that he sold, but I got this notice from SimplyWall St today:

"

Independent Non-Executive Director recently sold AU$3.8m worth of stock


On the 11th of June, Philip Norman sold around 5m shares on-market at roughly AU$0.82 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade.

This was the largest sale by an insider in the last 3 months.
Insiders have been net sellers, collectively disposing of AU$3.7m more than they bought in the last 12 months."





Not good look imo when Phil, who has been around for donkey's years, has decided to quit TSK (and who before that were VML and PLX). He's happy to get out before the buyout at $AU 0.82 and doesn't want any part of a share in PAR.

Why is this interesting? Well, it's interesting to me because Phil has been there for many many years, currently is a non-Exec Director and a past Chairman of the company for many years. He obviously sees that it's all over for TSK, and his shareholding. (nice payout for him by the way, it's been all worth it)

The company however has said ALL Directors are in favour of the buyout by PAR. Well it seems that not all of them are in favour and have voted already with their shares prior to the buyout being approved by shareholders, or it happening.

Imo think carefully whether you holders are happy with being wholly forced into a buy out at $AU 0.82, or taking up the offer of 50% buyout and the other 50% in PAR Technologies.

There's not much time left to make a decision, and with an ASX market close at $0.855, the opportunity is there to beat the buyout offer of $AU0.82 if you want it.

After that, TSK will cease to exist, if shareholders approve the PAR buyout offer, and frankly, it's a given that the buyout will happen as the largest shareholders by far (the Houden family) support this exit strategy, for themselves.

Helpful post thanks Baa Baa :)

[Baa_Baa]

And interestingly, Morgan Stanley on behalf of Mitsubishi took up a substantial holdings of 25m shares. Maybe they want some PAR? Or a blocking stake to the buy out.

[Baa_Baa]

Helpful post thanks Baa Baa :)

I've only glossed over the info, you need to check the details for facts. I could be wrong.

[Pegasus2000]

Thanks Baa and Snow L.

[sb9]

Big volumes being bid at 86c range. May hit 90c soon.

[Pegasus2000]

Morgan Stanley keeps buying from 6 to 17 June 2024. Substantial holding increases from 7.21% to 8.48%.

[sb9]

Sold my remaining half today at 86c. Can’t be bothered with US holding in PAR.

[whatsup]

Based on todays ASX its a done deal !

[Baa_Baa]

Based on todays ASX its a done deal !

Considering the heavily weighted shareholdings and their support, there was little doubt ever that the buyout would happen. Albeit now delayed a few weeks.

The conundrum for shareholders is whether to sell out at market (today $0.885) or take a 100% compulsory buyout at $0.82 a loss to market, or the 50% PAR/TSK at inferred $0.92 if you can believe it. A few larger shareholders and directors have voted with their feet and taken the market exit-now route.

[whatsup]

Note the drop in PAR shares over night in the U S from $47 down to $44, is this because the agreement is certain to go through ?

[mikeybycrikey]

Goneburger! Looks like TSK was delisted at the end of trading yesterday. I sold out about a week ago as I didn't want to deal with PAR shares. Has been the end of a long and mildly frustrating ride over the past 10 years or so.

[whatsup]

Goneburger! Looks like TSK was delisted at the end of trading yesterday. I sold out about a week ago as I didn't want to deal with PAR shares. Has been the end of a long and mildly frustrating ride over the past 10 years or so.

Me the same, how did u come out of this outfit ?

[Pegasus2000]

TASK Group Holdings Limited (ASX: TSK) – Removal from Official List Description TASK Group Holdings Limited (‘TSK’) will be removed from the Official List of ASX Limited at the close of trading today, Monday, 22 July 2024, in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between TSK and its shareholders in connection with the acquisition of all the issued capital in TSK by PAR Technology Corporation through its wholly owned subsidiary PAR Global Australia Pty Ltd.


Sold out all last month. Good luck to all the converted PAR holders. An interesting ride from Plexure to TASK.

[whatsup]

Tsk rip !