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Fair play for tweeting those positive thoughts Meta.
Interserve, the government contractor racing to stave off collapse, is encouraging its 69,000 staff to share “positive thoughts” about their employer on social media ahead of a crucial vote that will decide the company’s future on Friday.
The power point presentation — seen by the Financial Times — suggests that employees share on Facebook or tweet “what a great place Interserve is to work and why,” or how we “continue to win bids and contracts and deliver an excellent service to our customers”.
The presentation also encourages staff to reassure customers and suppliers over the future of the business.
The desperate plea is part of a last-ditch campaign, which includes targeted Google advertising, aimed at shoring up confidence in the company and persuading scores of smaller investors to vote for a debt-for-equity swap on Friday.
Cont.
“Value is being lost every day in Interserve,” said one person close to the board. “If we go through a pre-pack there is more noise around the business and it could take months for suppliers to understand.”
Cont
Although Interserve has been under pressure this week to improve its offer to shareholders, sources close to Coltrane said on Thursday that the fund had not “seen anything from the company that materially changes matters”.
Cont
Gail Cartmail, which represents Interserve workers in the Unite union, said the company’s message to employees was “grossly insensitive”. “Thousands of Interserve workers are worrying about their futures and management thinks not only is it a good idea but that workers would actually want to promote their workplace on social media.
“Unite sought meetings with Interserve when the original deleveraging plan was first revealed late last year, due to members’ concerns about their future but we were rebuffed and told that everything in the garden was rosy, which is clearly not the case.”
https://www.ft.com/content/0be957a6-4663-11e9-a965-23d669740bfb
Possibly many similarities. News report says the company advised the BBC to contact the accountants. Highway maintenance, building schools etc. Can’t see they did any Energy projects.
Fate - well done on your post. It makes alot of sense given the context.
I would imagine that in the end Coltrane and the lenders will do a deal between 7.5 and 10. Whether the lenders own 95,92.5 or 90 will actually make little difference to them in the end. Eventually in 5-10 years time the company may be worth say £500m (and that's pushing it imho - more likely half that). thus they are arguing over £10m. It's peanuts really in the scheme of things.
I understand (from sources close to negotiations) that Coltrane have lost Farringdon's support!
If this is correct, with the issue of 7% more votes to the Lenders yesterday, this will likely prevent them stopping the deal should they have wanted to.
Let's hope Coltrane take the 7.5% deal rather than going legal post deal passing.
Schwee,
When the deal is passed tomorrow, see below from the RNS.....
It is expected that the Company's free float will fall below 25 per cent. and the Company will need to formally apply to the FCA for a temporary modification of the requirement to maintain a free float of at least 25 per cent. Whilst the FCA has indicated that it would be minded to grant such a temporary modification to the Company for a period of twelve months from the date of completion of the Placing and Open Offer (even if there is no or a limited take up in the Open Offer), such modification will be subject to the Company being able to demonstrate that the market in the Ordinary Shares will operate properly and that there will be sufficient liquidity.
Discussions already in place to prevent de-listing. Also this will be currently part of the negotiating strategy with Coltrane.
With conversion of 11m warrants, BOD must have the votes to yet their deal over the line. Question then, wiill Interserve be delisted as existing shareholders wont be taking up their rights at 15p if they have any sense.
I am hearing that the options have now come down to this....
A deal is reached between Coltrane, Lenders & BoD today. Coltrane are "paid off" (outside of the deleveraging deal) to vote the deal through.
A deal is reached between Coltrane, Lenders & BoD today. Coltrane accept a deal between 7.5% and 10% (for existing) shareholders. The deleveraging vote is postponed tomorrow and the new deal re-scheduled for two weeks time.
A deal cannot be reached between Coltrane, Lenders & BoD. Coltrane will abstain from the vote and enter litigation with Interserve.
The BoD want a consensual deal. The Lenders do not want Pre-pack Administration as it affects some existing Projects. Coltrane can abstain (whilst retaining some value) and still go legal.
DYOR
yes I depends upon the take up of that offer.
I doubt many private investors can afford 19 times more.
the large investment firms probably can.
that will leave quite a few unsubscribed share.
they will probably have to offer those to the market.
that's still to come.
*15th March 2019
Pbody Latest time and date for receipt of completes Application Forms and payment in full under the Open Offer or settlement of relevent CREST instructions (as appropriate) 11.00am on 15th March 2015. I would expect to hear anything before then. By an amazing coincidence, that is also the date and time that the general meeting opens at.
has anyone mention anything on the amount of take-up there is on the offer?
I am of the opinion Interserve will not be placed into pre-pack administration. The Lenders and BOD do not want this. If this was an option they would be happy with why did they increase their offer to existing shareholders to receive 5% of the restructured company from their initial 2.5% offer. We also know they were keen to enter into talks with Coltrane to gain their vote and it was muted they would increase the offer further, to 7.5%. Not the actions you would expect if pre-pack administration was the route they wanted to take. I am hoping a last minute deal will be agreed, there may well still be a chance, but failing this I believe the Lenders and BOD are confident their 5% offer to shareholders will be voted through tomorrow valuing the shares at approx 15p. There could be some money to be made here with the sp currently trading at less than 10p, but as with everything in life in comes with a risk.
Bill - Let’s hope it’s Coltrane in the future and with their people in post this business gets sorted out. No more double digit growth and entering new markets without any in house knowledge or defined point of entry. You know one things certain in life, you get born and if lucky you get to crawl, then you walk and then perhaps you run. This is called a learning process. On the other hand you get involved with things you have no previous knowledge about, clients and the Government are eager to believe the spin, and savings on offer, and then oops! Those hardworking people you mention are left in a state of turmoil. Just look st some of the posts. Did you become a probation officer to get involved in private enterprise or to do a worthwhile professional job helping society? Well now you may be working for the Banks. The same Banks UK Plc bailed out because they previously failed. Lucky them.
Pundit- I mean the hardworking people in the business that go out there and deliver a fantastic service everyday. Note I said administration not liquidation which means the business will go on, but under a different name, change of ownership, which means shareholders will get zilch. The government contracts will not be affected as the Cabinent office support the deal, I have no idea what will happen to the others, but suspect they might care if they see a consistent service. It’s the Interserve name that will be damaged, and people will always remember what happened regardless of you changing the sign on the front door. This might make it difficult to win new work hence everyone is trying to that scenario.The boom you describe is very unlikely as like I said they will not go into liquidation as this is a strong business just short term cash flow issues, and some silly decisions have bought it to this outcome.
Bill- do you mean the previous and current BoD when you say workforce or all those hardworking people who have been duped? And how can the Government allow this to happen when the UK Probation service and frontline MOD establishments in Cyprus, Falklands etc and major USA Air Force bases in the UK are all involved. Perhaps all these contracts get cancelled. Look at previous Financial Reports, the Defence business is one of the most profitable, not so the poorly tendered loss making USA contract. What will happen to the BBC contract all the other Government contracts and all the other local gov and PFI contracts? They will or may all go elsewhere or back in house. Confidence in the whole UK FM, and perhaps construction sector, is set to be completely undermined and we all know what confidence means where shares are concerned. This might cost the Banks and lenders much more than just IRVs debt pile. Watch the fall out from what Friday may bring, perhaps not on Monday but soon after. Got any shares elsewhere well imo consider the possibilities and sell now. IRV competitors should imo be ready for the fall out. Boom!
MrEdwas- looks like Emerald got what they want as opposed to the banks, as the banks are not interested in owning the equity in companies. They will most likely hold the £350m debt secured against IRV whilst the likes of Emerald take equity of a healthy profitable business that will emerge. However it will be sad to see a once respectable thriving business go into administration, as the workforce is one of the best in the industry without a doubt.
One other thing :) I suspect that the BOD know full well that the deal offered won`t go through, maybe even all the biggish buys recently have been to help make sure it doesn`t.
They can always blame it on the shareholders themselves then, sort of like a "well we offered them something".
It`s looking increasingly likely the banks/Emerald have got exactly what they wanted all along...what a surprise!
This has been planned for months with the BOD knowing full well what was going on [they`ll keep their jobs and nice bonuses].
Oh I agree, Kenj, but there are some that haven't yet cottoned on to that- see those last night who were still buying.
"The only floor is will be those buying in expectation of a deal being done, not de listing and the sp improving over time, such as those who bought yesterday."
The problem with that Metamorphisis84, is that the low share price will deter shareholders from buying the new shares at 15.3p. So even if the vote is carried, the low uptake of the new share offer could hasten privatisation.
Will all of this take the healthcare division down as I use them as part of a care plan
Looks as though you were right about the stop losses, since going through 10p its down another .5. Who knows what it will be by time i finish this message. The only floor is will be those buying in expectation of a deal being done, not de listing and the sp improving over time, such as those who bought yesterday. But they are already down massively. So much ground to be made up now, will they throw the towel in as well?
CC agree hope it all leads to a positive outcome on Friday, for the sake of the employees.
Breached