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Do we see TED over performing in the long run ? If yes, double down. If no, run for the hills.
I’ll be taking up mine and maybe also some extra depending on the terms or if others don’t want there’s and it’s an option that’s presented to us.
Some form of open offer or rights issue would make more sense and sit alongside the dilution statement. Bottom line on that is the maths always brings it back the same again. Put in - averages out evens regardless of terms. Sit out and existing holding diluted as a result.
Could this just be an underhand way of pushing Ray further out ??
Well, considering how many of the shares are in the hands of institutions, it's really these large shareholders that are shouldering the burden. Bearing in mind some of the likely entry prices for these institutions, if they see long-term value, they may be more than willing to double up at current prices.
It's all in the plan/outlook I think.
It simply must be viable for the major shareholders to double down in this way (assuming they've agreed to the plan, which it sounds like they have - otherwise, why the leak).
Forget the issue price, what is more important is that they want us to double down on our holdings, pretty cheeky considering they have already issued 4 profit warnings in the last year and we have not seen any numbers since the beginning of the year.
You guys are over looking the obvious on your £1 targets. Article suggests raising 80m which is almost its current MC, back then.
So if he holds 35% and they’re issuing the same again then he needs to buy 35% of the new shares to maintain his 35% overall.
Which again takes you to £1.77 using the shares in issue we have - 45m. After the event would then expect 90m shares in issue with a SP of £1.77 in which Ray still holds 35% with his new cost of £28m on top of his existing.
There or there abouts unless it’s a RI or something else. Basic maths really... where is this £1 issue pulled from ??
No mystery at all.
Fundrasings of this size are arranged min 2weeks prior to the announcement.
There's still the mystery of why this news was leaked on a 'results', Friday, anyway. More than a little bit odd. Usually this sort of thing breaks on a Sunday afternoon/evening.
There's nothing to suggest Kelvin has that kind of money hanging around for this type of investment. How much of his wealth is derived from the value of TED?
My interpretation of the sky article was a placing of 80m shares at £1.
That's incorrect
Sky mentions Ray needs to inject £28M to keep his stake at 35%.
This implies £80M injection at 100p or 80million shares.
His current holding ~15.54million shares, so to keep the current stake of near 35% he needs to buy ~28million shares or inject £28M at 100p as per sky article.
Will find out tomorrow.
Open offer to other shareholders as well so current shareholders will have the opp to average down as well.
If 35% of £80m is 28m that would give us a placing price of £1.77 - £1.78
You’re wrong about people wouldn’t buy in at that price, you have to differentiate between investors and traders.
Investors will put in at any price they see long term value, Ray and the instu’s being the same. Fortunately for Ted those guys won’t be looking to flip for short term profits they’ll be more focused on what strengthens the company in the long run
Let’s see what happens Monday
Raymond Stuart Kelvin 34.9%
Toscafund Asset Management LLP 14.5%
Threadneedle Asset Management Ltd. 10.4%
Baillie Gifford & Co. 4.99%
Schroder Investment Management Ltd. 4.95%
Invesco Advisers, Inc. 4.28%
T. Rowe Price International Ltd. 3.40%
Wasatch Advisors, Inc. 3.09%
Aviva Investors Global Services Ltd. 2.57%
Hargreaves Lansdown Stockbrokers Ltd. 2.45%
I bet PI's own less then 5% of the shares.
But you also have to remember who is buying. Largely it’s not going to be joe public, it’ll be the major shareholders who already own most of the company (60% between just 3, of 15 of them).
Amazing to think this was £32p a share not that long ago.
The Market cap would 45 million , and they are looking to raise 80 million . I think there is no way you would get someone to pay £1.50 a share for 53.4 million shares .£1.00 for 80 million maybe