We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
The Pecker
CGT not a major factor as 70% of shares in Puretech are held by Funds with another c10% held by management who will not be selling one share.
As I have said Puretech's Board and shareholders would crack up with derision and laughter if a full bid for the company was made at £2.50 .
If the tender price was at £3 it may tempt a few and only cost the company an extra 20% or $20m which is nothing.
Lesley !!
Try looking 👀 on the bright side of life old chap
Either average down or sit tight and hope for a return on your 4 pound outlay
Not sure share trading is your forte !!?
There's no way PRTC would ever simply delist. It could get taken out by PE or any other major Pharma but it wouldn't delist (which is what I think you mean by being taken private, otherwise if you don't mean that then it's simply a takeover)
What if you dont accept a derisory offer and the company goes private
I assume that this has been structured as a tender offer so those shareholders (outside ISA and SIPP holdings) can get a better tax outcome as a CGT event rather than a taxable dividend?
Great idea if your sitting on a pile of loose change!
So I will double my holding too twelve thousand shares buying six thousand at 2.20ish
I will then take the tender offer for six thousand which will leave me with six thousand to carry on
Anyone who are in at much higher prices it’s time to buy buy buy to lower your averages surely??
In my view there will be few takers at £2.50 in the tender as most investors are under water here at £2.5
leaving the prospect of a large special dividend of maybe 8% plus and we can still keep our shares.
Best option unless tender offer price is raised to £2.75/£3
I will be emailing the company with my views.
ATB
It does say that "If the full $100 million is not returned, then the Company intends to return any remainder following the completion of the Tender Offer, by way of a special dividend."
If the price exceeds 250p by the time of the tender, no-one will sell and the whole lot will be returned as a special dividend.
Are the directors going to accept the offer?
Thanks Dallo very much appreciated
Lesley
You can keep your shares which I intend to do as the £2.50 , is on mature reflection on my part , derisory in a company with potentially c$1 billion in cash by the end of the year ( before today's Tender Offer).
On all valuation models the company is worth £4 a share minimum and clearly market reaction is decidedly muted today at this low ball offer.
Ask yourself the key question "If a formal bid for Puretech was made by a large Pharma today for £2.50 a share would shareholders accept it....no blooming way imho.
Not impressed.
If the markets improve further and we continue with further good news, the SP may sit above the tender offer by the end of April in which case the $100 million will be paid as a special dividend to shareholders instead.
Good news indeed. Do remember that there’s around 273 Million shares issued, so £550m. Hence if everyone took up the offer, which I doubt of course , you’d get 20% of your holding at £2.50. In reality, it’s probably going to be around 50%.
I agree with Dallo's point that the amount and strike price could have been higher. Although perhaps when the milestone money lands they will do another for say $100m at £3. In which case, this approach would probably have a bigger impact on the SP?
I bought at £4 years ago.What do i do now?
Seems like a good move, shores up the price for a long time. Gets us to April Stella results.
Rewards any holders who want the premium vs historical price. Removes holders (probably all) that think £2.5 is good value.
Opens door to setting the precedent.
Also will get a lot of coverage now
....less shares available to buy then assuming the company continues to be successful, the higher the SP should go. Far from waiting for the buyback, I just bought more!
I'm never sure about strategy on tender offers, although this one appears better than some I've seen recently so maybe I'd be prepared to let a small percentage of my holding go. What are peoples thoughts?
Great minds think alike.
I thought it should have been $200m at buyback price of £2.75 but not bad nonetheless.
Let's see what the market says today.
Still with $500 million in the bank and possibly more with approval milestone and potential deal on the royalties with BMS. I’d expect any further monies related to the Karuna deal to be distributed out to shareholders via tender offer towards the end of the year.
Great news this morning. Will be nice to see some large green candles for once.
Behold the pro(phet). 😂 nice call dallo. Glad they didn’t do an acquisition given their share price
Dallo ????
They also bought 20 mil share in on market purchases which are held in treasury