Teddy Sagi continues to write off public companies where he is invested while injecting tens of millions of dollars out of his own pocket to privatize them. After cybersecurity developer – kape, comes Best of the Best (BOBT), which is traded on AIM.
The company, where Sagi holds 29.9%, informed the Tel Aviv Stock Exchange that Sagi intends to make a tender offer for the remaining shares he does not yet own (70.1%), at GBP 5.35 per share – representing a premium of 33.8% compared to the price Sagi paid for his above-mentioned holding last September, a premium of 8.9% over the average share price in the past year (GBP 4.915), and a 3.6% discount on the closing price last Monday, at GBP 5.55.
Sagi acquired his current holding (29.9%) last September through Globe Invest, his family office, for approximately GBP 10 million (currently worth NIS 46 million), mainly from the Hindmarch family, the founding family and the Company’s largest shareholder. Back then, Sagi paid GBP 4.00 per share, and as of last Monday, prior to the above tender offer, the share was traded at GBP 5.55, i.e., a return of 39% for Sagi since his first investment.
Founded 24 years ago, Best of the Best is currently traded on the British stock exchange (AIM) at a valuation of GBP 46.4 million (USD 59 million). However, according to Sagi’s bid, the Company is worth GBP 47.7 million, which means Sagi would invest GBP 33.5 million (USD 43 million) in buying the remaining shares.
The Company explained in its announcement that the offer is attractive to other shareholders, inter alia, given the low tradability of the share, which complicates buying and selling shares in the market. Therefore, this tender offer allows them to liquefy their holdings at a fair price. Sagi has already received the consent of shareholders who hold 20.5% of the Company’s share capital, including the founding family headed by CEO William S. Hindmarch.
Sagi commented: “We are excited to continue capitalizing on the foundations laid down by William Hindmarch and the team at BOTB. To that end, we would focus on long-term, strategic, competitive and sustainable growth in the UK and worldwide that would be based on ongoing investments in technology, customer/product analytics and product development, marketing and distribution capabilities, and a customer-centric model. We also intend to support BOTB in evaluating potential acquisitions. Through our business partners and other companies in our group, we look forward to offering BOTB the operational, financial and knowledge-sharing support needed for its next growth period. Our offer represents a 33.75% premium on the price we paid for 29.9%, and it provides immediate liquidity to shareholders who wish to redeem their investment from highly illiquid stocks.”
What is Best of the Best?
Best of the Best started out as an offline retail chain store (bricks and mortar) in major airports and shopping malls in the UK until completely changing its operations, becoming the operator of www.botb.com, where weekly auctions are held offering cars, luxury watches, motorcycles, electronics and even vacations to the highest bidders. The Company operates only in the UK and has a loyal customer base of 1.8 million people. Best of the Best does not fall under the definition of a gambling firm because its weekly auctions are defined by the regulatory authorities as skill-based rather than luck-based games.
Best of the Best is a profitable, debt-free company that distributes dividends to its shareholders. The Company ended the fiscal year ending last April with GBP 26.2 million in revenues, compared with GBP 34.7 million in the fiscal year that ended in April 2022. Its net profit before tax was GBP 5.5 million compared to GBP 5.1 million in the fiscal year that ended in April 2022. The Company’s cash balance is worth GBP 6.9 million, and its balance sheet is debt-free. The Company has 26 employees.