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.
Why does it matter if they reached 90% (which they did)?
They already said they weren't going to exercise their right to a squeeze-out and maintain the listing.
Well, wasn't the first closing date of the offer yesterday? We should hear something now as to whether they reached the 90%, it gets extended or they failed.
Agree but it really depends on how long the company will take to resolve the takeover, from the last update 58% was owned but the volume since then has been thin, 13% represents 24.1million shares. Nothing like that has been traded since last update from what I see, so since the first close is tomorrow I believe, and the price is so near in the market I think they will fall far short of what the required level needed (90%) to need full ownership..but we will see, I dont see why someone will want to wait for what could be up to a month to gain .5p when in the market you can sell for 15p. I think I will be hanging on to these and see what happens..
I'd be amazed if there were any updates before the takeover is resolved.
Does anyone know anything about when we might be able to expect an update for the Jazz pharma deal, there should be a milestone payment due once they have an IND status in place. Also I have been looking at the lesser known subsidary of this company REDX anti infectives, I remember reading somewhere they had compounds that deal with pneumonia and antibacterial resistant infections, it is unbelievable they have so much and will be sold for so cheap, do not know why just didnt do a share raise in the market instead of attempting to be bought out on the cheap. Once again I think they will not get to 90% on this, not at 15.5p.
Recent update was mediocre but I think its in line with what the managment want, the trial has been halted for now for their near term drug target, there could be other news in the pipeline but who knows, disappointed but still feel they may be a suprise with this. I am holding with this I do not think they would dillute their own massive stake bought from 11-15p range by announcing a delisting, if they do not get to 90% then being a minority shareholder may have benefits, they may extend the TO offer after the deadline, we will see. GL DYOR
Thanks Donato84. Interesting points.
Not that I am aware, under takeover rules they have a mandatory offer for 15.5p this means one could wait until the last moment and if the price in the market is lower accept the bid via their broker. Another interesting point I read somewhere that a delisting is a possibility only after 75% of the voting rights are secured. As the offer document was made available after the bidder had 50% this means that the bidder needs independant shareholders majority vote to delist I believe. If the companies intention was to delist they would probably not be looking to buy 75% of the value of the company at 15.5p, also worst case scenario a delist possibility means you still are a shareholder just not on a listed market, as this company clearly values redx I do not mind keeping my holding until such time. Company needs to give 20 days notice to delist also so this will lead up past the offer end date at which point an individual would simply take up the offer to sell. IF a delist was announced as an intention it may be an excellent opportunity to buy more on a share fall as either they will have to honour the 15.5p buyout or the company gets taken private. Interestingly enough I read somewhere that if the bidder buys higher than the offer made in the market the entire offer needs to go through at that price. Someone correct me if I am wrong here, I have had to refresh my knowledge on takeovers over the weekend. As I understand this will be a costly excerise for the bidder if the 90% is not reached, I still think there could be upside here, but we are drawing close to the deadline as the price is so close in the market doesnt make much sense accepting the offer right at this moment..
I think they have to pay market value at the time of exceeding 90% Could be more (or less) than 15.5p. I am sure on that basis we won't see many good news announcements.
I'm pretty sure at the end of the process they pay all holders 15.5p for the remaining shares.
I only have a few thousand shares in this, but it's a derisory offer and my answer is no, I won't accept it.
That said, if I don't accept it, and RedX subsequently delists, I'm assuming the shares will be worthless.
Good to have the 90% confirmed.
My letter from HSBC says that they will default to take no action if they don't hear from me by the 27th. They won't. Let's hope Redmile can't get the 90%. Probably still a done deal though.
The corporate action note I recieved (from Equinniti )states that they will accept the offer unless I specifically write to advise otherwise. Surely by rights they should only act by instructions from myself as a default position.
That was just the way it was laid out in the Notice.
I tend to agree with Donato and will hold on as I believe it is severly undervalued; need mid 30s to break even
Thanks, makes sense to me to do nothing then. Mine and probably many others pension pots are trashed because of Brexit/Corona so I guess hanging onto 10k shares ain't gonna make much difference :-)
No as far as I understand and reviewing the corporate action I received if you do nothing you will keep a hold of your shares, unless Redmile achieve 90% acceptance this will then mean your shares will be taken mandatorily at 15.5p. Its a very unsual situation and one I have not been involved with before personally, if the share price drops this creates an almost arbitrage trade for any new buyer at 15.5p by the end of the month, but if they do not buy in the open market or attempt to then they run the risk of not achieving the acceptance rate of 90% which means they company needs to reapproach in a years time. Would be worth calling your broker to get a better picture as this is how I understand the situation to be, whatever it may be I am not accepting the offer unless I have to as do not have a large holding here and would rather hold out to see what may happen..if price goes to 50p then maybe I will be interested!
Well it may very well still go through at 15.5p if investors handover their shares on the cheap, or if they somehow get to 90% through larger institutions, I believe they will provide regular updates as to acceptances nearer the time, as mentioned before this does not look to be a mandatory takeover investors still have the choice to hold on to their shares which may be a very good option dependant on the companies future updates. An interesting strategy now would be for the other bidder to try and buy the remaining shares in the market thus preventing Redmile getting to 90%. Having had a look at the pipeline the company looks promising, there are a number of biotechs with 100million valuations that arent doing anything tangible compared to this company. Its a shame the management went for the short term fix but the existing shareholders hold all the cards here IMO..
Finite....didn't read it like that...they will take your shares if we do nothing ?
Hi Donato
Interested to read your take on the situation, Ajbell have sent me an action/allocation to either do nothing or accept... miffed it's so 'cheap'
Although the offer of 15.5p will see me break even, feel a bit miffed it's mandatory :-(
This is an extract from what my broker has sent as the coporate action-
"If Redmile receives acceptances under the Offer in respect of, and/or otherwise acquires 90 percent or more of the REDX shares and assuming that all of the other conditions of the Offer have been satisfied or waived, Redmile intends to exercise its rights pursuant to the provisions of [sections 974-991] of the Companies Act 2006 to acquire compulsorily the remaining REDX shares on the same terms as the Offer."
It seems that the 90percent mark is needed, it doesnt make much sense to accept as it seems the floor for the share price is 15.5p as this is the price Redmile have been buying in cash for, I believe they must be only on around 60% by now not including automatic acceptances. If this was a mandatory offer then why does it look like they are buying in the market so close to the offered price. If they do not get the 90% I think under takeover rules they are blocked from making another takeover offer, within a 12 month period, if that happens the company has the funding but will need funding options again by around August, Redmile would not be paying 15.5p if they were about to go bust IMO , they may extend the offer also, once again do not really know if they can extend indefinitely. As the share float grows smaller then the price will get more sensitive to positive news. I believe we are due the data for RXC004 in March. Still to play for here, I for one am not happy with the derisory offer on the table, the science is clearly good but management team inept/poor considering they are consistently running on fumes, the company has a potential $200 million in milestone payments from Jazz, they have an anti infectives subsidary that really should be coming up with a lot of interest right now with all thats going on, they have managed to sell one of their products few years back also for around $40 million, so they are capable of a few suprises here. The long term shareholders are the ones taking a hit here, this used to be a £1/share a while back, the risk/reward here is good still dependant on any updates the company may have. By holding out until the last minute it looks like the price may rise in the open market nearer to the deadline, just my opinion dyor.
Corporate Action Notice received today:
OPTION 1: Do nothing (Default). You will keep your current holding if you do nothing.
OPTION 2: Accept the offer and receive GBP0.155 cash in exchange for each Redx Pharma Ltd share held
I am holding as near to the end of the deadline date which I think is around 30April, it looks like a lot of the bigger share holders have cashed their chips, means that the remaining circa 35% odd needed for the bid to be pushed through would come from individuals hands. If this is the case then redx may be trying to buy the shares in the open market, which would push the price I imagine, as there is a small float now available- I am no expert but I think if you google the takeover rules they need about 90% acceptance. If they have less by the end of the deadline the takeover could fail and Redmile could become just a large shareholder. There are many companies where the shares are tightly held and not a lot are available to the public, this is obviously not what Redmile want but they may not want to risk waiting right up to the deadline for individuals to respond to the offer document. This company should be worth so much more than 15.5p a lot of lesser bios out there riding the Corona bandwagon, its clear this company has interesting tech as two rival bids are after them. DYOR as always
What to do now folks
Interesting point on the 90% guys. Where have you got that from please? I've been invested in several companies during takeovers - ARM, ISAT and poor old SXX to name a few. None of them needed that kind of support. In my experience if the board recommends an offer it's a done deal regardless of how many shares the suitor owns.
It gives me hope though. I do believe this is a derisory one. Hopeful they wouldn't get 90%.