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I am not sure what the fear is around the beauty spin-off.
Companies do this when they feel a single share does not represent the value of the sum of the parts of the business. The idea is that separate listings should find their own true value... thus more shareholder value.
As holders at the time of the spin-off, you *SHOULD* receive tax-free shares in the "new" share.
So how does he buy millions of shares "on the open market"? You can't do that because the float no big enough.
So billions in sales. Separately the business is valued at 2 billion so 6 billion minimum and numpties are talking 1 quid and 3 quid..
Go take a look at next and others then come back and.. f off again before you post. Fml how do kids get accounts and why do they think it is funny wasting time and energy posting all this crud
truant2, I'm certainly not a 'true believer', but I do not see this business @£1.00 per share, it may by some catastrophic incident happen, but very unlikely. I personally think the 'true value' to be @£3.00 today, again if it gets there and that's another thing all together...
Yes Mando, if there is a ‘buy’ declaration by MM its ‘on table’ face down to market and that is the sentiment I want to see in a CEO : balanced by a Chair who’s more ‘statesmanlike’ for want of a better word. C.37hrs and we’ll all be wiser.
The main positive of the article is that MM is reducing conflict of interests that the market viewed as negative (even though all were shared at IPO)
So in this case he is no longer the landlord of THG main distribution center so another potential conflict of interest is removed. It can be assumed he will continue to sell more of the buildings of the opportunity arises and would not be surprised to see an update on q4 results
It's not really anything to do with THG, but MM's personal finances as he has sold an old warehouse he personally owns, which is no longer used by THG since they moved to the autostore robot system in their main warehouse.
What will be interesting is if he uses the extra £100m liquidity he now has from the sale to re-invest personally into THG.
Considering it is currently a closed period for insider trades, he could make an announcement on Tuesday that he may be buying back shares in THG. That would give a significant confidence move to the share price if that were to happen.
Looking forward to Tuesday
At the risk of sounding stupid, why is this a positive? I want the sp to bounce as much as anyone, but how does THG benefit from this sale?
SBM,
"As for some, why be part of something if you keep worrying it's going to go bust??
Because if you put your own cash in and at the time it sounded like an investable business, only to learn that later you feel things don't look right, then you want out. But you want out when you get your money back at the very least Is that so unreasonable?
Why make a loss just because you want out?
If you were not invested, would anyone give a cr4p about a business going belly up? I did not care when BHS took a dive, only cared for the employees that took a hit, because of a conman by the name of Philip Green.
As for selling up when the business has reached it's heights, I think most that want out will be thinking they may just be happy with a net zero loss. Would you not agree?
If you believe in the company model and believe in the product and service it provide and that it will make a lot of money for business in the coming years ( not days) then why not be part of it??.. when you invested and are part of it then please give it time .. invest and be part of the ride, there will always be ups and downs in all businesses, just set yourself a target and sell when you feel the business has reached its heights...
As for some, why be part of something if you keep worry ing it's going to go bust??
Totally agree Marek, and the fact he has made so much effort to address the objections suggest to me he is determined to unlock high shareholder value (as he doesn’t need to have done any of them). Then hopefully results are amazing and if we get a clean house with a positive SoftBank update, this will fly. Either way, good MM is addressing so called governance issues
Personally I've always felt that the "governance issues" were something of a red herring. Something that could be used to muddy the waters when writing negative articles. No material facts regarding the "issues" had changed from IPO.
1) MM Dual Role = Search for new Independent Chairman started Mid October.
2) MM Special Share = THG announced special share to be relinquished as part of step up to Main Market.
3) MM Landlord/Tenant Conflict = I expect this Omega deal to be the start of MM divesting his properties connected to THG.
The "issues" have now been addressed with no positive impact on the SP. So were they rely issues in the first place ???????
This was the article:
"Title - The Hut Group’s Matt Moulding offloads controversial £100m warehouse to LondonMetric
The Hut Group boss Matt Moulding has sold a distribution centre handed to him as part of a controversial arrangement that installed him as landlord to the online beauty retailer.
A company controlled by Moulding sold the Omega distribution centre in Warrington, roughly the size of 11 football pitches, to property investor LondonMetric for about £100 million last month.
In the run-up to THG’s float in 2020, the board signed off on a sale and leaseback deal that saw companies controlled by Moulding take ownership of THG’s commercial properties, which included warehouses, a hotel and a country club.
Moulding paid for the properties by cancelling share options he was entitled to as part of the float, yet appears to have received payment for the Warrington facility in cash. Of the £19 million in annual rent received by Moulding from THG, £4.1 million came from the warehouse. Moulding and THG declined to comment.
Corporate governance concerns have contributed to a 76 per cent slump in THG’s shares over the past year. Moulding has agreed to surrender his golden share, which allowed him to block hostile takeovers, and his dual role as chief executive and chairman.
The Warrington deal has paved the way for Moulding, whose net worth was recorded at £2.1 billion in last year’s Sunday Times Rich List, to settle part of a controversial £151 million loan he took from Warrington borough council last year. MCL Omega Propco, a company that holds rights over part of the Warrington facility and is controlled indirectly by Moulding, satisfied an outstanding charge to the council in full last week.
LondonMetric paid £47.5 million for Omega in 2014 and signed a pre-let agreement with THG, which exercised an option to buy it for £53.7 million in 2016."
Does anyone have the full Times article to share please?
Is it broadly positive news?
thanks
Yes full Times article says £100 million sale proceeds was used to pay Cheshire Council loan
Cheshire Council loan reduced in news last week by £150 million. Surely this sale which happened last month is to pay that loan off
* Should be '£100m' not £100
Or £100 could buy
57m shares at £1.75 /share...
Mando_ If I'm following correctly, does that mean that the results will be poor and so sp tanks which in turn will enable MM to purchase more shares and therefore have a greater say on which direction to take this?
£100m could buy:-
50m shares at £2.00/share
40m shares at £2.50/share
30m shares at £3.33/share
The Bloomberg terminal shows 127 Institutional owners with 997.53m shares owned.
Shares out/Float 81.7%/74.4%
Shares bought 643.03m
I'm wondering if £100m MM will get from the sale of the warehouse, added to his personal wealth, would be enough for him to take THG private?
If this warehouse sale happened a month ago, why was it leaked for announcement today, strangely close to the Q4 update?
Is MM allowed to buy shares from Tuesday following the update (considering insider trading regs around closed periods)?
But until he reverses this, I and I imagine the market will remain largly unimpressed.
"Announcing today that THG Beauty is to be separated and listed on a public share-trading exchange in 2022"
Can someone copy/paste the whole article please
This is positive news from the times and shows Matt Moulding making more positive changes. He has taken governance concerns seriously and we know 1/ he has committed in public to remove golden share , 2/ committed to appoint independent chair and now 3/ removing being the landlord on the biggest property
https://www.thetimes.co.uk/article/the-hut-groups-matt-moulding-offloads-controversial-100m-warehouse-to-londonmetric-t9bsfbv5j