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Funnily enough, having been an excited shareholder in Open Orphan, cashed in yesterday to free up more funds for PRD.
Cathal is at least enthusiastic and open, but to date, the sum of OO and Poolbeg prices remain below the price before splitting.
Some things simply do not work in straight lines.
Just an observation - pharma company Open Orphan (ORPH) are following this path of carving out their non-core assets into separate companies to better realise value (1 down, 3 to go). Their CEO, Cathal Friel, was previously the founder and Chairman of Fastnet Oil and Gas where he worked with Paul.
Hi Keith,
Thanks for reminding us, there is a growing list of evidence that points in this direction.
I must remind myself to go back and re-read docs already in the public domain, as the pieces fall in to place, we can indeed see the 'bread crumbs' more clearly if one reexamines earlier Docs.
It's all out there Ladies and Gents.
MEM
Re. separate listings: PRD are already looking at this route - p.14 of the 28th Sept presentation that I mentioned earlier today clearly states that a separate IPO spin off of Irish assets is being considered, and p.13 mentions a JV SPV for T&T CO2 EOR.
Just about every part of the PRD mix is potentially financially instrumenstisable.
That could be through separate AIM listings, it could be through list green bonds, there are a vast multiplicity of instruments out there to crystallise optimal VALUE.
I would hope that PG gets in some advisors that have some idea of what they are doing on this stuff (and they definitely exist) because the upside for shareholders (and I am just a relatively small one) could be huge.
The bottom line is that whatever VALUE maximisation strategy is chosen by PG, it looks like it could be quite big (maybe bigger than that).
Which is what I was here for in the first place.
It looks to me like we might be sitting in a good place.
Good morning GRH, Sefton,
I think you might be onto something re spin off different parts of PRD in to separate listings, but all on AIM.
As some of you might know, there are a few companies who can assist PG realise this direction of travel. All AIM listings follow a set of core principals, if you like a Template, fill in the template (I know its not as easy as I make out) and bingo we have 3 or 4 separate listings.
It is a huge amount of work, but PG could get this achieved, if GRH is correct, this process will have already started 3+ months ago.
How do we pay for this ? easy, some shares in each new entity will be awarded to the company overseeing/creating our new AIM Listings.
ps anyone living outside HMRC jurisdiction should consider moving any UK Pension in to a QROP or similar. Seek professional advice please.
MEM
Morning GRH,
For the record, I agree entirely with your logic.
In my view, the trifecta aspect of PRD is actually one of its greatest attractions.
But the markets generally do not like complexity.
Which is often where an SOTP (Sum of the Parts) calculus comes in - and is why the asset-strippers of the 80's (Hanson, Williams, BTR, Goldsmith, etc) were so successful. Basically, the bits separate were worth more than the whole.
Except that, they weren't actually asset-strippers, they were really asset-crystallisers or VALUE-crystallisers.
I have no idea but PG and his advisors are doing but I think they would do themselves - and us as shareholders - a great favour by contemplating your posting and what its implications could be.
Have a good weekend all.
Morning all...
We have been told that PRD will move early next year from a main market STANDARD listing to AIM
Please understand that a standard listing is nothing remotely like a full premium listing ...
not even close!!!
We have all assumed that it will be a single listing...and it probably will be exactly that...
it's a lot of additional work!
We have also been told to expect special dividends...and many have assumed they will be made as cash returns...effectively returns of capital
( I have mentioned before about needing to structure these carefully to ensure monies are subject to capital gains tax as opposed to tax on dividend income...I appreciate that it matters not to many who hold shares in SIPPs or ISAs...but it matters to me)
But I have been asking myself the question ' what would I do ?
What is to prevent PRD spinning up several joint ventures with muscular partners
and floating each of them on AIM...
as entirely separate entities...
Yes, the work involved would be very great!
But one of the reasons imo why PRD equity is so lowly priced is that the markets are full of people who like a simple story...
but PRD is a complex beast...
incredibly so for a toddler company
it would provide immediate ...clear... valuations on all the separate legs of the current businesses
Yes...it sounds unlikely and probably is...
But it might be feasible
The combined equity values could be more than interesting...
Just a morning ramble
Regards
GRH