Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Thanks angio, i couldn't see it. I agree Jed, i think its best to sit tight, part of me wants to sell in disgust, but then they've won !! I agree the debt is scary, and agree the people that put the company in this situation are to blame but its too late for that we are where we are, now what we need is a decent BOD to be creative and come up with a solution, and i think they believe they have done that but with total disregard for the bigger picture.
I've had a good read through this, only in layman's language, but it seems to me that we have a number of possibilities:
Sell - almost all the trades today so far are at 34.05p
Hold on in the short term to see what ABC and the big institutional holders do, in the hope there may be a counter-bid, but at this late stage?
Transfer our shares to TopCo and have them locked in for five years, taking a share of any dividends the new owners take and hope that when it goes into other PE or back to the market, we get a decent dividend.
I feel deeply saddened that the many staff of the AA and long term holders have gone through yet another trouncing. I'm lucky in that this was speculative for me and I only bought in late, so am on a semi-decent profit of a few thousand, but I think the offer totally undervalues the AA and it's tempting to hold on either for a counterbid, get my £0.35 which could take some time, or write-off the money for five years (max) and hope for a decent payout in 2025.
I'm not selling today that's for sure.
I think there's more going on here, if the bod's are recommending this deal why isn't there a vote date, is it because they think it will be turned down. I think the best thing for the moment is to just sit tight.
We all know that if the deal goes through we have 35p in the bag as a fall back, and there is the chance that if the big shareholders say the will NOT surpport this deal if will fail and so I think they have up-to 40p to come back with to sweeten the deal. What's the rush until they issue some timelines.
this might help. Court Meeting and the General Meeting, together with an indicative timetable for implementation of the Scheme, will be dispatched to AA Shareholders (together with the Forms of Proxy and Form of Election) as soon as is reasonably practicable and, in any event within 28 days of the date of this announcement (unless the Panel consents to a later date). The Court Meeting and the General Meeting are expected to be held in January 2021.
Check with the institution which administrates the AA saye scheme, example Equiniti , you should be classed as a “ good leaver “ ( as though the shares and matching shares have matured and receive payment ) but check with the company concerned
GLA
Even on the buy one get one free i still stand to lose a substantial amount before ny fees.
I can't find a vote date anywhere. I think they have put in a cheeky offer ... cos they can. I also believe the BOD are weak and have given up hence the cheeky offer being recommended. In the back of my mind i keep thinking there will be another offer from another party, and that is why there were RNS yesterday after hours. This offer was only announced this week because they were pushed into it. I'm torn what to do, i can see arguments for cashing out now and holding on and waiting, and i think thats what the offer was about. What are other peoples thoughts, am i just clinging to a dream ?
And massively down patrol like my wife what a joke this company has become think first time we started buying they were £2.50 a share thought at the time it was a no brainer learnt the hard way
I hope the matched shares do become ours considering we should class as a good lever as they broke the contract and not us, I'm holding just shy of 17,000
Has anyone seen a vote date yet or are they just going to let this run and hope they get approval for 75% over a period of time?
or a turn down of offer by the large shareholders.
My wife is also in the aa employee scheme which matched every share bought with one off the aa still dont know if these matched shares will be paid on her statement it says she has 9700 shares
im out today for other opportunities,but good luck to everyone.
So you will be forced to sell, but you won't have tax liability if you bought them above £3. Only pay tax if you make a gain.
However, If your shares were gifted to you for free (via work scheme) then you will make a profit and will have to pay tax.
Only pay Capital Gains Tax - so no national insurance and no income tax. You have a separate CGT tax free allowance of £12,300 and pay CGT above this. So unless your value is above £12,300 don't worry about it.
I personally think you are better off with this taken private as an employee as the Bidco are injecting £378m to pay down debt
You're selling your stock for less than you paid for it, therefore I would think there are no capital gains to be paid.
Can anyone confirm?
Can anyone answer this question please
I have my staff share and wonder if i will still have to pay tax and ni when im forced to sell as if so im set to lose loads as a lot of my shares where purchased at over £3 each.
There is no mention of what would happen on the AA share portal.
Why aren't people blaming the other private equity company who loaded the AA with debt?
The board has done a great job educing the impossible debt.
This share was a broker buy c£1 back in January when the debt level was well known.
I recall the initial offer for Kingston Communication triggered a better offer from other parties. On that occasion I sold too early, so, will wait this time around to see if another better bid arrives.
Unless I have missed something, I see that Albert Bridge are not mentioned as backing the offer.
Best of luck to all - I'm sat on a big loss at the moment
This is a disgrace, and the fact that the. BoD have endorsed the offer is a comment on their abject failure over a number of years. I reckon they had little option though, as there clearly is no plan B to raise capital or to conclude as successful re financing package in 2021
This DOB are utter mugs considering the pre covid SP was 48p+ which was followed by excellent FY results that again if not for Covid would have pushed the SP to 60p+.
what sort of company making annual revs of close to £1b, profits of £100m and £149m sellout with a offer only valuing the company at £219m ?
That may or may not be true. But Davidson Kempner the only II supporting this. Getting 75% without the support of ABC etc may well be very challenging. Fingers crossed for an interlopper. Separate question of opportunity costs of covid-19 recovery investments elsewhere if you consider what BP, Shell etc have done this week.
"The AA are desperate to get bought that’s what i heard"
So does anyone know if there’s a counter offer from another bidder how long they now have to put there offer forward before 35p is accepted ?
This deal doesn't feel like it's a done deal to me. I can see a better offer being received now we finally have an offer on the table.
If it gets over the line then this is daylight robbery but then the world of finance seems to be full of crooks.
in a few years , yes I agree but with one difference they will make double / treble their money which is what the current bod's could do with support.
So are many / most holders assuming that if we all vote this down they will come back with another few p??
It's interesting that they have what about 15% so far in favour but I guess that will change fast.