Forum Topics RDY RDY PEP non-acquisition
Noddy74
2 months ago

It's funny how two people can read the same announcement and have very different takes on it, @Jimmy .

My reading of today's announcement wasn't that the Board had rejected PEP's offer. At best it sounds to me like they were yelling "you can't break up for with me, because I break up with you" at PEP, who had already moved out and were halfway down the street.

Yesterday's announcement disclosed PEP had withdrawn their offer but were working on a new option at the same consideration, "even if not all upfront". Putting aside the ambiguity of that last statement, it reads like a Board who are keen to do a deal.

To come back just a day later and say PEP hadn't put forward an alternative deal and, therefore, no deal would be done, makes it feel like continuous disclosure rules have made a toe-in-the-water tentative discussion sound more advanced than it probably was. It's not necessarily all the Board's fault and is probably a result of dealing with private equity who don't have the same statutory requirements to adhere to, but it does seem quite messy.

I don't really have a view of RDY's fundamental outlook though. It is on one of my watchlists and is now back to a level similar to where it was trading at prior to the PEP 'offer' so maybe it does represent value now.

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jayjayjayjay
2 months ago

I own RDY in real life and view the outcome similar to @Noddy74. I wrote a previous straw about being disappointed if the company was sold at this price having said that I did take some profits at $4 a couple days prior to PEP pulling out of the deal after reviewing my holding. My reasoning behind this were levels were around Covid highs and given the market is going through a bear phase it just seemed sensible.

I still remain bullish on RDY a founder led company that has no debt and sticky contracts. I think for me to buy more it would need to drop to around the $2.50 price. Directors were purchasing at $2.70 earlier this year from memory.

DISC own IRL

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