Cross Border Actions in Tech Stocks: Mode, Equiniti and D4t4

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Summary

  • Fintech player Mode Global files for OTCQB trading in the US.
  • Siris Capital of the US submits a non-binding offer to acquire Equiniti.
  • D4T4 continues geographic expansion with the opening of an APAC office in Sydney 

The worldwide trend of data, digital and crypto benefits the LSE players in terms of cross border interactions. This is evident from some latest developments at the stock counters of three tech players, which were buzzing through the day. Fin-tech player Mode announced filing for OTCQB trading, another US private equity firm Siris Capital has confirmed an all-cash acquisition bid for Equiniti, the British outsourcer. At the same time, the data solutions provider D4T4 posted positive FY’21 updates based on recurring revenue metrics and announced expansion plans in key global markets.

                           

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Mode files for trade on OTCQB

Mode Global Holdings PLC (LON: MODE), the LSE-listed payments solution provider, announced its application filing with OTC Markets Group for its shares to be cross-traded publicly on the OTCQB Venture Market (OTCQB), under the ticker "MODE". This international trading competence will be delivered by New York-based OTC Markets Group Inc. who drive the world's leading electronic interdealer bidding structure for US brokers. This listing on the US venture markets platform would mark a key milestone for Mode as its’ shares would become widely accessible to US investors.

This would in turn, boost liquidity, diversify shareholders and increase brand visibility of the company globally. This it said, would have zero impact on existing trading on LSE and no new shares will be issued for the US listing. It will not have any new SOX or SEC reporting requirements. Mode Executive Chairman Jonathan Rowland believes that the move would not only raises their profile internationally but would also boost the liquidity of its shares.

Mode Chief Investor Relations Officer Ariane Murphy said that with the growing appetite for the US investors to get involved in companies with cryptocurrency offering Mode’s application, if successful, could be opening the doors to the US investors to a highly attractive investment opportunity with enormous long-term growth potential.

Reacting to the development, shares of Mode Global Holdings gained 4.12 per cent to GBX 50.50, as of 12:40 PM GMT+1. The stock’s market capitalization stood at GBP 44.35 million, and it has given a return of 17.29 per cent on a YTD basis. 

Siris Capital bids to acquire Equiniti

Ending the recent press hearsay about Equiniti Group Plc (LON: EQN), Siris Capital of the US, confirmed submitting a non-binding offer to acquire the entire issued share capital of Equiniti for cash consideration of 170 pence per share. Greenhill & Co. International LLP ("Greenhill") and Goldman Sachs International ("Goldman Sachs") are acting as financial advisers for Siris in connection to this acquisition.

The application sets out a decidedly deliverable route and schedule of a binding proposal. Though it doesn’t ratify certainty of a formal offer, Siris Capital is required to either announce a firm offer or to announce an intention denial, latest by 17 May 2021.  

As per the takeover code, Siris reserves the right to diverge from and/or mix of the proposal given in the announcement with right to offer a lower value on the consent of the board of Equiniti or if Equiniti announces/declares/pays any dividend, or if a third party publicizes a firm offer intent for Equinity, valued at a lower price.

Reacting to the development, shares of Equiniti Group surged by 20.64 per cent to GBX 166.00, as of 12:37 PM GMT+1. The stock’s market capitalization stood at GBP 505.30 million, and it has given a return of almost 50 per cent on a YTD basis.

D4t4 Solutions Plc-Trading update

D4t4 Solutions Plc (LON: D4T4), the data solutions provider, announced a trading update today for the year ended 31 March 2021. On account of strong pipelines business, it expects group revenue and adjusted PBT to be £22.8 million and £4.2 million, respectively, both ahead of prior expectations.

Moving into FY22, the group now benefits from record levels of annual recurring revenue (ARR) up by 11% YoY basis to £10.6 million and is assumed to sustain on the uptrend as it is in the direction of adopting an annual recurring revenue (ARR) model, providing extra income visibility. It reported a strong year-end cash position of approximately £14.2 million and has no debt at the year end. Its ongoing investments are majorly to enhance Customer Data Platform (CDP) offerings and fraud products due to launch in June 2021.

The group is continuing geographic expansion with the opening of an APAC office in Sydney, Australia and operational growth in Cary, USA and Chennai, India and is well-positioned in its key markets. Final results for FY’21 is anticipated on the 29 June.

Reacting to the announcement, FTSE AIM All-Share listed stocks of D4T4 SOLUTIONS Plc gained 9.55 per cent to GBX 350.00, as of 12:57 PM GMT+1. The stock’s market capitalization stood at GBP 128.52 million, and it has given a return of 18.90 per cent on a YTD basis.


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