I've still not made up my mind whether to sell or not. Will wait and watch for now..
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I've still not made up my mind whether to sell or not. Will wait and watch for now..
Currently trading at offer price of 81c, wonder if its got further legs to go....
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.
Well said Kiwical :)
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.
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.
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.
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.