The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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too late for this year's SIPP allowance. not much of silver lining.
According to Hargreaves Lansdowne: "Shareholders approved this takeover at meetings held on 8 March 2022. The takeover still needs court approval at a hearing on 29 March 2022.
If you’re still a shareholder at the end of 31 March 2022 and the takeover is approved, you’ll get 125p per share for your Air Partner plc shares. The cash will be credited to your account on or around 14 April 2022. "
anyone know when shareholders will be paid for those who hold shares in certificate form.
16:15 today: it's a sale. I've been in this company since 1998. I'm gutted. Sold down the river.
According to BearBull at the Inveztors' Chronicle. S/he makes a good point that the directors should have played harder with Wheels Up. But thinks the deal will go through on the nod today. Still a nice profit for me, but the £1.70 BB estimates as fair value would have been a lot nicer.
https://www.investorschronicle.co.uk/news/2022/03/03/how-to-assess-whether-a-takeover-offer-is-good-value/
I decided to read through the Air Partner documents so I can organise to vote electronically and live in the actual meetings. In there they actually state the the YE PL ending 31st Jan 2022 was £8.6mm (I’d wrongly been expecting a separate RNS on this). I’d predicted £9mm, so not far off. We know that they have about £13mm of net cash (no debt). The takeover value is £84.8mm, so a PE ratio of only 8.35 excluding the cash that already effectively belongs to us shareholders. Not exactly appealing considering the future firepower they’ve been building up!
From Investor Chronicle Bear-Bull fund the other day: “However, cash may be forthcoming soon, thanks to a recommended 125p-a-share cash offer for aircraft charter specialist Air Partner (AIR), which values its equity at £80mn. What is remarkable is not that the offer – from Wheels Up Experience (US:UP), a US firm in a similar line of business – should be at that level, but that the directors should recommend it. Less than two years ago the shares traded at 144p. More important, even without trying, per-share values of anything from 142p to 173p spring from Bearbull valuation models that use weighted average profit or cash flow for the past five years as the value driver. Yet Air Partner’s bosses were so thrilled by recent trading that either side of Christmas they raised their profit guidance for the year to end January, adding that, in effect, there was also £13m of spare cash in the balance sheet. So it feels slightly insulting that the offer precludes a final dividend for the year just ended. The pity is that almost 12 per cent of the share capital is irrevocably committed to the offer and another 16 per cent is in non-binding commitments. Let’s hope Air Partner’s other shareholders are sufficiently switched on to get the offer to more realistic levels”.
...hmmm. Interesting
Had this about a year or so and intended to just hold. 80+% profit though on this share is a windfall in my books, and with some others in my portfolio getting dragged down on Russia and Ukraine issues, I sold out this morning, albeit it was not one I’m glad to be out of. I’m sure there will be other opportunities that catch my attention in the near future. GLA.
Yup, stuck myself down for a few at $3.87. They're up nearly 7% on the day, so the market quite likes the news, even with the stonking extra debt it entails.
21.16%
Delta Air Lines, Inc. 52,000,995 $188.2m 0% no data
6.52%
FMR LLC 16,017,378 $58.0m -0.77% no data
5.7%
Kenneth Dichter 14,018,050 $50.7m 0% no data
4.73%
T. Rowe Price Group, Inc. 11,633,936 $42.1m 0% no data
3.66%
HG Vora Capital Management, LLC 9,000,000 $32.6m 0% 1.14%
3.16%
Franklin Resources, Inc. 7,762,117 $28.1m 0% 0.01%
1.26%
The Vanguard Group, Inc. 3,087,861 $11.2m 0% no data
1.12%
TimesSquare Capital Management, LLC 2,740,150 $9.9m 0% 0.09%
1.02%
Third Point LLC 2,500,000 $9.1m 0% 0.06%
1.02%
Durable Capital Partners, LP 2,500,000 $9.1m 0% 0.08%
0.94%
BlackRock, Inc. 2,307,262 $8.4m 0% no data
Invested here last autumn so happy with gain. However many on board feel price to low but surely that means opportunity to invest in UP. If they got good bargain will enhance their future a lot. Hopefully the good mgt from AIR will be able to utilise skills over bigger arena. Seems plenty of upside in UP share price over next few years. If you believe in growth potential of market surely this represents opportunity. Dollar dealing costs are low and dollar much lower than 2 years ago. what do others think
Majority of shareholders are funds; depends whether or not the ultimate holders want jam today or jam tomorrow. Global economy looks to be on the way down with the Ukraine situation, but it's already down, with encroaching interest rates damping any growth. Personally, I see a stagnation until everyone finds their feet, then growth, as was predicted. The American market is going to be more significant for AIR, and I do believe there's a far greater upside. I don't believe the BOD are being objective in their view, just reducing their own risk exposure (I don't see much more risk than has been seen over the last 2 years).
Yes, cd27idw, a very nice profit for me but a very bad deal overall. Not sure whether to plough my proceeds into Wheels Up, on the grounds that they've got a hell of a bargain. Or hold off as Wheels Up's share price has dropped from over $10 to $3.60 in the last year, and they pay no divi.
Can they not ask for more?
Sucks big style. This company has far more potential than what the offer implies. At least 50% more would have been considerable. 125p is derisory. BOD are running off like frightened rabbits. We're just starting to see growth in the USA, which itself would have (as always has been the case) contributed a massive amount to the company's performance.
Recommended by the BOD !
Looks like we passed Russ!
I agree with your estimations although it seems odd that the trading update is so obtuse. Feels like an exam where they tell you what the cash balance is after having g paid down £5m of debt, now work out what you think the profit is!
One positive for me is that it shows the business is resilient to conditions with or without COVID and cash generative.
Let’s wait for next update and hope they flesh out the numbers a bit more and see if we passed our exam!
Has the market missed the implications of these numbers maybe? Increased cash by 2.9m and paid down £5m of debt since the end of July. So that’s 7.9m of cash generated in a 4.5 month period. Obviously we won’t know until results how much of that is movement of working capital and how much is profits but with 3.5m PBT in H1 we could easily be looking at 10m PBT for the full year and possibly more.
If it wasn't affected in lockdown it won't be affected now
Daughter still very smug BD....Air still in the hanger until today: anyone know why it has been pulled onto the runway? For a bit of daylight then back in.........not much sign of fuelling let alone take off!
Your daughter must now be regretting it after today’s exceptional results and SP move!
Good to see this pass £1. Should fly now over the coming weeks.
First dipped in at 23p March '20 HL..........topped up with a few then got very bored as I said. Recommended a buy to daughter at 80ish: she was not impressed. Just made second recommendation and received very unlady-like reply! She will regret it! I hope!!
Monteacute - did you get filled here? You did well to buy at 37p before!