- Serial entrepreneur thinks Kape growth strategy better suited away from public market glare
- Sagi already owns 54% of cyber security company’s shares
- 285p per share cash offer 37% below 455p record
Teddy Sagi is upping the pressure on AIM-listed cyber security company Kape Technologies (KAPE:AIM) to accept a takeover offer after tabling a 285p per share cash offer for the company, worth £1.25 billion.
Sagi, one of the founders of FTSE 250 gaming industry technology company Playtech (PTEC), wants to buyout other Kape investors after a volatile past few years on the stock market. Sagi already owns a 54% stake in Kape.
INITIAL OFFER DISMISSED BY BOARD
The offer is the latest of proposals fielded by the Kape board since Sagi’s Unikmind vehicle first approached it with takeover plans on 9 December 2022, proposing to offer 265p a share. This was rejected on the basis that it offered ‘insufficient value to shareholders.’
The latest offer represents a rough 10% premium to Kape’s closing price of 260p on 10 February.
Whether Kape accepts this offer or not, Sagi’s Unikmind vehicle plans to try and delist Kape from the UK stock market, a move that could leave retail investors owning stock in a privately-owned business that will be hard to sell.
Unikmind thinks Kape will benefit from time away from public markets as it looks to scale its business, with further acquisitions likely to play a major part in that strategy.
WHY SAGI WANTS TO TAKE KAPE PRIVATE
‘The last decade has witnessed the rapid growth of digital services with the expansion of e-commerce. Kape has, with our support as the majority shareholder, transformed through several strategic acquisitions, into a truly global leader in the digital privacy and security space,’ said Sagi.
In response, Kape said: ‘In light of the stated intention of Unikmind to seek a delisting of the company regardless of the outcome of the offer, and the ability of Unikmind to acquire further Kape shares without constraint once the NDA standstill expires, the independent directors believe that it was in the interests of shareholders for the company to grant Unikmind a partial standstill release from the NDA to allow Unikmind’s proposal to be presented to Kape shareholders for their consideration.
‘After consultation, the independent directors will write to Kape shareholders with their views on the offer in due course. In the meantime, shareholders are urged to take no action.’
Kape shares jumped 12% in early trade on 13 February in response to the latest developments, hitting 290p. That is still below the 299p hit in January and far below the 455p levels of December 2021.
