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I see this tender offer as just another Share Buy back under another name. They are reducing
The number of shares by $100m possibly in a very short period, Not from the open market but from investors.
Does sound like a cunning plan.If as i would guess they do drop post tender
So why so many sells today between 217 and 220, and a share price drop of 2.25%?
I don't understand why people wouldn't apply for the tender offer other than for tax reasons.
Surely you just sell at £2.50 and buy them back for cheaper. What am I missing?
Or do people think the SP will be above £2.50 by the time you get your hands on the tender proceeds?
Hi Red
I see your angle now, you're basing it on 100% of holders wanting to tender, so therefore they'll only get 14%.
Where as I think they'll be lucky to get 14% tendering so they could have 100% each in my view.
The Tender Offer is a clever ploy by Zohar ...but too clever by half .
With just a free float of c20% ( Institutional investors own 70% and management/ Directors/ connected parties own c10%), this Tender is aimed at the free floaters who , in the unlikely event of them all tendering and with no Institutional or investors likely to tender any shares , this would reduce the free float to c6% and increase the % holding of the remaining investors ( mainly Institutional and management) by 11.6% .
While I hope the free floaters are not that stupid it is obviously what the company is targeting at a low ball price.
I told the company that a Tender Offer of £3 may dislodge the wavering shareholders but at £2.50 there is little chance of that happening.
Too smart indeed but not fooling everyone , I hope.
With more big payouts to come and even a possible takeover, management just got too greedy.
I am not tendering my shares for what it is worth.
Hi soundman , I think you have a miss understanding.
For example if everyone puts their shares in to sell at £2.50, how will the company pay ?
The company has capped the offer to 14% (£100m), thus more than 14% of shareholders ask for redemption , you will get scaled back.
This is on the assumption you can even ask to redeem your full holding, the offering doc may limit it to 14%…
I hope enough people tender to use up the full $100m, I'd prefer that, rather than a part of the amount being paid out as a dividend
You will be able to tender has many as you have
If it’s oversubscribed you will not get your full amount
It won’t be at this price lol 😂
Red - As I said yesterday, I don't think you're limited to applying for 14%, I think you can tender 100% if you like.
The only mention I can see of 14% in the RNS is...
'The capital return of $100 million represents approximately 14% of PureTech's market capitalization based on yesterday's closing price.'
Yes , without doubt if you sell a stellar asset for 14bn and even then , shareholders only get a 30p dividend on 14% of their holdings … something is very wrong. You would be mad to hold this share for returns as a PI , what needs to happen for you to make a return ? Given they have no dividend yield and do not pay out when they make a blockbuster deal?
Dallo - I expect the response you will get from Zohar (if you get one at all), is they're giving shorter term shareholders a route out to the ultimate benefit of long term holders.
Yep. Definitely a strategy to get rid of short term retail from the register hoping they'll take a small percentage fast buck and move on.
I think I'll keep every share I've got and see where we end up.
Dallo
I am also a longtime bull of this share has you know
But luckily for me I have traded it for a number of years now
With this pittance being offered to shareholders and the tender offer to lower the shareholding as well has the buyback
I smell an agenda from management to either sell the company or a management buyout for has cheap as possible??
This will also explain why the septics in the know are not kicking the doors down to buy it on the Nasdaq !!
I raised my holdings yesterday to my maximum hold and I am averaging 198.5 a share leaves me in a comfortable position whatever occurs ??
This outfit Dallo has been promising holders payouts for a good couple of years now not once have they kept their word !!
I hope you long term sit and hold gang get something in return!!
But I am afraid to say I am happier in my boat than yours!!
GLA.
As an uber bull on Puretech for many years I am very disappointed with today's crumbs from the table capital return strategy and have made my view known to the management.
The Karuna bonanza was a great opportunity to reward shareholders for years of patience and in my view , Zohar has blown it.
Not a happy camper.
H2Nick
I expect the arbitrage opportunity to narrow tomorrow and we will probably see the SP move to c £2.40 ish tomorrow to deter punters.
H2Nick
Given that the Tender documents are not approved and filed as yet it is almost certain that qualifying shareholders will be those that are on the Share Register on the date the Tender Offer becomes final so there is an arbitrage opportunity here at £2.20 for a 10% twist assuming all goes to plan.
.......FILL YOUR BOOTS TIME!!!
Imagine the publicity this is now going to get and do it now.
Dallo - thanks for that info !
H2Nick
Be careful on that strategy as the Tender Offer may only apply to holders who were on the share register prior to todays announcement .
Dyphne Zohars's response to Lesley that the offer may clear out some sellers from the 20% free float mainly is risible at I cannot see the Institutional investors with 70% and management with 10% selling very much.
At £3 a share and at extra $20m cost, loose holders may have been tempted.
Puretech have got the Tender price all wrong by suggesting the Board feel that the value of the company's shares is just £2.50 so why should investors pay more.
Big misstep imho but can be rectified by increasing the offer to £3.
I have said this to Kana for what it is worth.
Cheers
Contacted Daphne Her reply was clearing out some sellers would have a beneficial effect but she understands my point.
Dallo
Some folk might buy some now ~222 if they know they can sell for 250 next month ?
I just need to flog something else first...
SoundMan
I have emailed my views on this derisory offer which I suggested will fail miserably and leave us with a near $80/90m special dividend of 10% plus and we hold on on our shares for future shareholder returns to made by the company as per RNS.
I said to Kana that I bet none of the management shareholders will sell a single share at £2.50.
I await her response
ATB
Just noticed Dallo's comment from 11.09. Pretty much my view on the other thread, but Dallo is more articulate ;-)
£2.75 required to make me even look at the maths again, but PRTC is worth so much more.
The more I think about it, the more I can't think of any reason to sell any at 250.
In fact, it's illogical for anyone not in need of immediate cash to consider it if the SP moves beyond 230 when taking into account all the factors, even if they bought in at 150-160.
I can see a special divi coming and 90% failure on the tender offer.