Ann: Strategic acquisition of 19.9pc of Earlypay Ltd, page-41

  1. 281 Posts.
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    Noone else likely to lob a takeover bid at EPY with SVR owning 20%. Either SVR complete a takeover or there is no takeover.

    As you pointed out, SVR have paid an 11.9x multiple, that means EPY represents an ~8% return for SVR. If that's higher than SVR's cost of capital then it's effectively just deploying some leverage for a positive carry with SVR taking the risk of EPY earnings volatility.
 
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