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Take private, for all parties, looking more attractive by the day.
CMC Markets Plc : Peel Hunt resumes coverage with add rating; target price 140p
* CMC Markets Plc : Shore Capital cuts fair value to 75p from 155p
Shore Capital have had a sell on this for months so that ain't right
Shore Capital downgrade to sell from hold. 75p price target from 155p
I left school at 15 as well and that's where similarities between myself and Peter end!
I have edited Wikipedia to state CMC is now worth £300M.
Career
He left Shoreditch Comprehensive with no qualifications, aged 15, and gained a job as a telex operator for Western Union in the City of London. After being made redundant, he worked in the foreign currency trading rooms of various banks, including the Bank of Iran and Marine Midland.[1]
By 1989, Cruddas was the head foreign exchange dealer at the City of London branch of the Jordanian-based Petra Bank.[16] He left the same year to set up his own business, starting CMC Markets with £10,000 in the bank. CMC Markets is currently valued at between £750 million and £1.2 billion.[5] By August 2023 CMC had fallen in value to £300m."
"Why is "Lord Cruddas going to have to take this private" ? Genuinely interested what insider knowledge you seem to have. Thanks".
There's no "insider knowledge", it's just an opinion as to a possibility.
As for why, the typical reasons trotted out in other instances of delisting are that the public markets are no longer providing access to adequate funding and that it's expensive to maintain a listing. Oftentimes, what then happens is the company is fixed up and made to look beautiful again in private hands. Then, in a few year's time when markets are generally booming (or at least not depressed), they bring it back to the public markets for a huge profit. It's the old private equity rinse & repeat. Not saying it'll happen here (as this is just conjecture), but it's certainly happened many times with other companies in the past.
I was thinking of the 90% threshold for a squeeze-out (forcing holdouts to hand over their shares).
The 75% threshold is however an important level beyond which pre-emption rights cease for minorities.
In short, because its seven year stock market listing has been a disaster and there are few viable options available other than for the business to be taken private by Lord Cruddas either on his own or with private equity partners.
Why is "Lord Cruddas going to have to take this private" ? Genuinely interested what insider knowledge you seem to have. Thanks
The "quorum threshold" is, I think, a 75% vote in favour of delisting at an EGM. Cruddas is already on 70%, so he may not even need to offer that premium, just stitch up a deal with 5% of holders.
Yes of course Lord Cruddas would have to offer a premium to current prices. He could afford to be generous and offer 140p a share (a 30% premium today’s prices) which is well below the 240p he sold his shares seven years ago at IPO.
This is going sub 100p and investors would bite his arm off for the opportunity to sell out of what is pretty much an illiquid stock at 140p.
I note from your post in June you were buying these at 162p.
If he plans to take it private he still has to make an offer acceptable to the outstanding shareholders (presumably there will be some quorum threshold and clean-up call).
Enlighten me then and explain how it would work in your view?
You clearly dont understand how that would work
I think you miss understand what is meant by take private. It will be Lord Cruddas who will buying the outstanding 35% at low prices and taking the business back into (his) private ownership.
Given he will get 65% of "the price" I think Cruddas will make sure its good it that where to happen
This will recover. I remember PLUS at sub 200 and everyone selling.....
GeekBench: It's not about loyalty - CMC was already on a serious downhill track in July. If the CFO wants to jump ship it CAN be a sign the ship is sinking; or may be the two were just a coincidence? Everybody is entitled to draw their own conclusion but on 7 July CMC share price was 150p, it's dropped nearly 30% in less than 2 months.
Meanwhile, the remaining "extremely talented people" at CMC are manning the bilge pumps!
AceOfClubs
Lord Cruddas is going to have to take this private and I doubt investors will like the price.
Euan MarshallL: "I have thoroughly enjoyed working with the extremely talented people at CMC over the last 11 years, and particularly my last 4 years as CFO"
What is the time frame for you to think someone has to stay to show his/her loyalty? He has already spent 11 years at the company!
Indeed Mary - and in case you missed these:
7 July: He clearly sees greener pastures elsewhere. If the CFO is giving up on CMC why should anybody else invest?
https://www.londonstockexchange.com/news-article/CMCX/directorate-change/16031140
Difficult one to value, is Peter Crudas any longer up to it?
And today: "Jefferies cuts to underperform. 80p target from 190p."
AceOfClubs
Im buying more
This will come good but will no doubt take a while now
No net debt, decent dividend, Strong FCF ++++
Jefferies cuts to underperform. 80p target from 190p.
Corrected, should have gone to specsavers.
Hazard of a quick scan and a mobile phone screen.
Are you sure that it’s a purchase of 588,135 shares? I read it as two dividend reinvestment purchases of 588 and 135 shares (unfortunately!) but I stand corrected.
Price(s) 129p +
588,135 shares