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Yes it was in the Interim Results RNS.
I posted it on another thread but here it is again.
“ The £140M equity raise is intended to improve the Group's financial position by reducing the term loan from £134m to £70m and repaying the drawn £40m of revolving credit facility, with the balance of proceeds raised increasing available cash by around £36m.”
Hi Rox
As I understand it, there is large amount of cash left over on the balance sheet from the capital raise (don’t know how much). Also I understand that most of the £140m was used to reduce debt. Clearly the net assets were increased and so the pie is bigger. This is my opinion but I am willing to learn or even to agree to differ.
Hi Bat
Our Pie consists of 2 ships and over 50’s insurance. What additional assets have been purchased with this money?
Hi Poker
I also agree with TFE!
Once you have been diluted you can’t “undilute” yourself after the event by buying more shares.
I understand what you are saying that you have bought additional shares at a really good price but you have had to put your hand in your pocket again and do just that, buy them with more of your £. The price you paid is irrelevant.
Enjoying the banter guys but I think we just have to agree to disagree on this and move on!
SAR very profitable Baldrick, noticed the postings on here are getting very educated and not the usual “I’ve topped up more” shi,,
Fink you are now probably out of your depth on here Baldrick.
Fact 1 Shareholders were all shafted.
Fact 2 This pie went stale 2 year ago.
Fact 3 Shareholders that took up the offering, need certifying.
Fact 4 Still a billion in debt.
Fact 5 Good Luck.
Mr Chips you spout some sh,,e,
Hi Rox
You state: Fact2. The pie is exactly the same size it’s not bigger BUT its is better.
The purpose of the Capital Raising process was to raise capital and hence, in our analogy, to increase the size of the pie. The pie is bigger. It has fewer liabilities and more assets. Unfortunately the arbitrary value assigned by the market is currently lower but this will IMHO increase. This is the reason you have given for investing more today to make a profit when the assigned value increases.
Fact3
Everyone who took their full allocation of shares not only owns less of the Company than they did prior but has been charged £ for the pleasure.
RoxburyHouse
I agree with the comment from TheFarEnd ...and I guess what is important is whether shareholders read the prospectus and the expected % dilution which was given in that prospectus...if so..yes. the allocation of new shares was insufficient to maintain that expected dilution % (overall) and as such more shares were needed to be purchased from the main market in order to maintain the individual shareholders % company holding ...as TheFarEnd commented , there wasn't an opportunity to buy more shares in the fund raise than the quantity allocated
Now, as it happened many shareholders ended up making up for the potential dilution shortfall by buying extra shares at substantially BELOW the offer price of 12p (or equivalent).
As I have reiterated..I have actually increased my % shareholding of the company to more than what it was before the fund raise and haven't as such suffered any dilution ( and my buying has averaged below the 12p fund raise price) ....
I am showing a capital erosion as a result of the current market share price ....but... I have averted dilution at a result of purchases made at less than 12p a share fund raise offer price (equivalent)
It doesn't matter whether Sir Roger had extra new shares which could have affected the dilution and not added to the allocation to shareholders , as long as shareholders have taken steps to increase their % holdings accordingly...at what it turns out to be a very attractive price.....it all evens out , at this stage...from a potential dilution perspective...
Fully agree with this.
I have been in and out of saga since lockdown and have made some great returns on the volatility. But this morning I'm in another 6k and I hope to see great returns, seems to be massively undervalued.
Hold steady lads out time will come!
Fact 1
Everybody has been diluted.
Fact2
The pie is exactly the same size it’s not bigger BUT its is better.
Fact3
Everyone who took their full allocation of shares not only owns less of the Company than they did prior but has been charged £ for the pleasure.
Fact4
Saga is in a better position now than before the RI to survive and is significantly stronger financially because of the PIs here. You.
Fact 5
I bought another £15,000 this morning because like you I’m a believer.
The debate over dilution is semantics.
The only question that is important is capital erosion. How much are your current shares worth compared to when you made your purchases.
So if you bought £6000 worth of shares and you now have £3000 your investment has halved.
On a share paying no dividend income, dilution is not that relevant as the dividend per share is zero for everyone.
PC is right about percentages but the reason I said at the time that we will be diluted is you could only apply for your entitlement according to your holding before the fund raise.
This was not a usual RI so it could not be oversubscribed. At the time I could not buy more in the actual fund raise than my entitlement.
The fact that it wasn't fully subscribed and especially with the continued SP drop gave everyone AFTER the event to buy more than their entitlement. Of course that was your decision.
If you added more after the offer, that's another and different matter.
"We've been arithmetically diluted, but not economically diluted" that's a new one on me Pianista, wether you've been "economically diluted" remains to be seen.
You can put what spin on this you want but the fact is your holding has been diluted due to the fund raise.