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Yes.
Have you allowed for the fact that this is a $ based transaction?
I hold 42525 shares but can’t seem to get my head around this current situation. Can anyone tel me what I will be due to get back through the new deal ? Many thanks
4.5p, actually! On top of the 3.17p cash tender refund.
So, there will be 144mn shares left after the Tender Offer? With some £6.5mn in cash for the remaining business? That's a remaining cash per remaining share value of 4p. What am I getting wrong?
I imagine the tender offer price will be based around the cash value of the company, perhaps 5p per share.
E.g. they will buy back 250 million shares at 5p per share. With all shareholders entitled to sell at least 63% of the shareholding (250/394.5).
If some shareholder decide not to take part in the tender offer then the remaining shareholders will be able to sell more of their shares at 5p.
Great to see this complete.
I’m calculating the shareholder return as 3.17p per share.
Looks like £13.5m for shareholder return. £943k being used for the buyback of the leavers shares. Leaving £12.5m.
The buyback of leavers shares is good for shareholders since it’s done at a lower price than the cash value per share. Leaving more cash per share for remaining shareholders.
Currently 416.1m shares. 21.6m leavers shares to be bought back. Leaving 394.5m shares.
£12.5m to be returns over 394.5m shares = 3.17p per share.
Returned to be paid in May. In line with the 8-12 week timeline following the GM.
Name has changed to LETS in my trading account.
Surprised no RNS to this effect.
Older Martin mentioned it in the vox interview he did. Sure he said 8 to 12 weeks and they where trying to find the best mechanism to pay it. However it’s about 20 minutes long and I may just be remembering it wrong. Might be worth you checking it out.
I suppose the lukewarm market reaction to the positive vote today is down to holders now waiting on a definite payment date for the sale. Does anyone have a good feel for the timing?
Let’s hope all the motions are passed at the meeting today and that the sale can proceed without any hiccups.
They seem to have performed so many u turns over the last few years, that I will glad to cash up and move on as I have found it increasingly difficult to believe a word they say. It’s all spin spin spin.
I’m not sure how going forwards, they are going to find extra content for their already stale HBE products or who is going to make it for them.
Best of luck to anyone who remains invested.
Its very common. White collar robbery! Share price should be cooking 30/90p.
Higginson says can’t be a a dividend as they don’t have distributable reserves. Vox markets podcast 12 mins 30 seconds but looking at other ways to get cash to shareholders. Good to hear from him that will increase payout if investment opportunities not viable
As I understand the 3p pay out will be be a dividend which will be subject to dividend tax of.8.75%.
Having bought at the original offer price of 10p in 2008, A bit of disaster, but at least get something back with 1.6p
to hope for more
So HBE will cover the costs.
If only we had an idea what business/s MH plans to acquire and in what sector?
PD
Thanks for that.
Interesting interview and thank you Mr Higginson for clearing up some issues.
He hinted that if the share price doesn’t reflect the cash 5p a share by the time it’s time to pay investors out, then he might throw the rest in.
Sounds like a great gamble if you buy at 3.5 and get 5p back either in a few months.
Also said that remaining business is self supporting financially so won’t drain the pot.
VOX interview with Martin just released
Beginning to look like this is a management buyout
I didn’t notice that .
Thanks for pointing out.
If that’s the case, then there is also the possibility that family members are part of the company that is buying the LBE side.
It’s all smelling rather fishy and clarification is needed.
On the face of it, investors have been shafted.
Let’s have the last quarters lBE figures so we can see how exactly lBE was performing.
I assume that you saw this part as well-
‘ in principle agreement had been reached for a £250k injection of capital into the HBE business by a third party in return for 51% ownership of that business)’
Then further down -
‘It has therefore been decided, in consultation with the investor (a company in which Martin Higginson, and his family have a minority ownership interest), to alter the terms of the above mentioned investment of capital to become a loan'.
So Higginson was part of the group buying out the HBE for 250k, which suddenly, when it suited, was able to achieve sales of 800K in a day (which we were not informed of until yesterday).
Call me cynical , but why would family members buy ?
Uvisan which is considered de minimis and does not fit with the company's future objectives, has now been sold for consideration of £100,000 to a group of investors (including Uvisan management) that includes family members of David Marks. The participation in this transaction by David Marks' family is considered to result in a related party transaction under AIM Rule 13 of the AIM Rules for Companies due to David Marks being a director of the Company. The Directors of the Company independent of Mr Marks consider, having consulted with Cenkos Securities PLC, the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as the Company's Shareholders are concerned.
My view is that this isn't subject to tax.
Agreed. I feel the consensus among myself and probably many other shareholders would be for the full proceeds to be distributed back so we can put this one to bed.
If 4.9p is returned to holders, Martin would receive c.£1.5m by my calculations from his advertised holding - thats more than enough cash for him to go and flog headsets without making shareholders suffer any longer.
Looking at RNS, the share price look to be 30% discounted to the proceeds. Maybe they should just wind it up and give us the cash...
The Disposals value the LBE business at $25,211,739 (approximately £20.5m) on an enterprise value basis, ignoring any value attributed to the HBE business, or approximately 4.9p per existing Ordinary Share in the Company.
Does some one know if the retune of the 3p is liable to tax, if so which one thanks