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Doesn't appear to be much new information here apart from some technical clarifications around majority owners' positions and just underlining the governance mess, but we already knew this. Certainly nothing around the operational viability of the business. Don't think there's much to be gleamed.
Sorry youre a ****!
It’s you’re*
OK adzy your always correct ;-)
No ffs castaway. This 7 million shares in the dollar were sold by GS in May 2018 to enforce their hedge. It was clearly announced in a RNS! The missing shares related to a MOU with the buttis and some other undeclared pledges he made, some of which have been sold as enforcement of security.
Some of you guys don’t have a clue! How are you investing is beyond me.
To be fair castaway collar transaction are not that unusual and in Shetty’s example was understandable because the stock increased 20x fold
“ An investor should consider executing a collar if they are currently long a stock that has substantial unrealized gains. Additionally, the investor might also consider it if they are bullish on the stock over the long term, but are unsure of shorter term prospects”
It was also publicly announced in May 2018 that he has doing this.
It's absolutely disgusting what has gone on here. Shetty and the other f*ckers need to go to jail. I expect a total loss here and it is looking more and more like it possibly could be a fraud more and more!!!
This would explain why they had no clue where the shs were as they were already sold
This type of transaction usually goes on in a company that is a fraud or the director wants cash without selling down his shs - Shetty wants cash but cannot sell shs (it would have caused the loan agreement default). The fund/bank offer him say 25% of the value of those shs on the basis they can sell them if they want - they sell down from £28 quid make a killing - He is happy as he knows NMC is screwed and he gets cash out without anyone knowing or the loans being called in until it is too late. All adds up with the stalling re. Freeh - gave him another month of credibility.
Castaway - they sold the shares as a hedge (short) but I would have thought would have had to buy back to return to Shetty... given the suspension they can’t now buy back so maybe that’s why the cash equivalent settlement ... but based on what price I wonder.
I’ve said this before - believe me the big asset managers have grads working on these mid cap em stocks, they are yanks or Europeans who have no clue about how EM or UAE works. They don’t know a thing about governance risk because they’re not taught to doubt the financial accounts. I’m guessing corporate access is also pretty limited.
But to be fair it won’t be a massive loss for any of them (including capital) as NMC is less than 0.5% in most of these portfolios where it’s held
adzy - they have already sold the shs
I am hoping someone wants the shares
Ah ok, you’re probably right, they just want to wash their hands of him before he goes to jail.
Rastuss - remember this is essentially an emerging market company parading around on ftse 100. LSE rules are pretty lax so don’t compare this to an AZN for example
From May 2018: To facilitate the funded collar transaction, BRS will lend up to 7million of NMC Shares to Goldman Sachs International. Goldman Sachs International will sell NMC Shares via a block trade to institutional investors to establish its initial hedge for the funded collar transaction.
So instead of returning the 7 million shares, they chose to make a cash payment? If they are going to collapse why not wait for the suspension to be lifted and then buy back the shares to give to Shetty?
What am I missing?
talking of Shetty look who is in the UAE top twenty rich
https://www.khaleejtimes.com/business/economy/revealed-these-are-uaes-19-richest-people-and-control-dh206b-wealth
Basically looks like Shetty was basically frantically dumping his shares (forced or not).
I found this interesting:
Goldman Sachs International has elected to discharge its obligation to return the 7,000,000 Ordinary Shares of the Company it has rehypothecated to BRS Capital by way of making a cash equivalent payment to BRS Capital Limited, to be offset against the amount payable by BRS Capital Limited to Goldman Sachs International on termination of the funded collar transaction.
Why wouldn’t they just return (the now worthless?) shares... why make a cash payment?
Anyone make sense of all that?