The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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Well that is that.
Will five up my 5p and move on they have got a bargin.
Hi all
Does anyone know if the board will have to publish results before the buyout???
Thanks
Try Nfx.
Acceptance by voting shareholders in the absence of immediate alternatives and not wanting to risk admin. It is still at risk of a rival bid, anything goes until the court sanctions the scheme in Q1 2020 but time is ticking.
However, where are the H1 results??? Should have been out last week.
Well all over then. Get my cheque in a few days and cut my losses.
A smart move by the poker player/med hedge fund.
Lost 45 % on this one. Anyone got any tips to recover?
The sudden change in tone seems to be because banks refused to renew their facilities and sold them instead to the hedge fund. Management didnt see this coming and didnt anticipate the hedge fund's move to capitalise. There are possibly many potential suitors to buy this up, but most obvious one in my opinion is the consortium backing Tapi. Massive synergy potential exists, they know the carpet retailing business inside out and they will take out their chief competitor in one move - imagine what the profitability will be like once they stop fighting each other. And because of this, this consortium can easily make the best argument for making bybfar the highest offer.
Jinny- I must say I’m impressed with your arguments and optimism, but sadly the world we live revolves around corruption, deceit and cheating. This all looks all well pre planned to me. None of the updates this year alluded to any sort of financial trouble, so I’m very suspicious. I’m also surprised that the other Shareholders voted for the deal without a fight, so again I suspect foul play. They were most likely paid a higher price behind closed door as even a fool can see this is undervalued. It has £50m property abs we are selling for £15m. Madness!!!You are correct this requires a £90m takeover target to get to 30p, but that is 6x the current bid so would need some very interested parties to outbid each other. Let’s see what the new year brings and hope you are right.
Still hope. 30p breakeven requires just a £90m takeover bid value at present, for a business that counts cost saving upsides of £19m per annum, with trading profits to be added on top of that. - this could realistically reach £40m pre-tax profit a year or thereabouts, and we know management were targetting double digit pre-tax profit margins as part of the CVA. 30p/share is also a psychological milestone given the equity raise was at 28p
The shareholder loan was for £15m the rest is just fees and interests. That was a deliberate ploy to compound the debt and reach to this situation since the rate was 18% anum. Regardless of what happens I won’t see my 30p again so I’m prepared for the worst here. Yet another typical aim con.
The results should be positive reading, afterall management have been reporting strong like for like sales growth so far in H1. Couple it with cost savings measures, it should be an uptrend. Debt is what is being used to beat it down, but there is seadonality in the debt and december is the absolute peak month. After which the business generates cash to significantly reduce it again. Think about this, if not for the shareholder loan (of £26m), the business will have had just £1m net debt as at end of H1 2019. I cant see how interested parties will let this go for the equivalent of pennies without trying anything
Perfectly plausible Jinny. I suspect the results will show ‘doom and gloom’ to put people off, but those on the know will know the reality of the situation. I’m in at 30p so have written my money off.
D day is well into Q1 2020 - check the timeline in the last update, aim is to have it all wrapped up before 1 March 2020. The deciding eventbis the court approval. Rival bidders may possibly choose to wait for release of H1 results (assumed for next week) and the outcome of the shareholder vote if they want to do anything.
At that point it will be too late if it goes into administration. Look at at this way we are approaching D day and do date no one has expressed an interest. Very unlikely anyone is interested in owning CPR as one of the other shareholders could have easily made a counter offer by now.
Not if a third party goes public with a higher bid before any admin process. How can the administrations then argue they've maximised proceeds of sale for ALL creditors if they sell for lower price. The business appears more than viable.
Yes Junny BUT they own the debt so they’ll just put it into a pre pack administration and takeover that way just like Debenhams.
Thankfully the hedge fund's 29.9% holding is excluded and cant be voted. They need 75% approval from the shares they dont already own. At the last update they had around mid-40% and those pledges are structured so that they automatically lapse if a higher bid emerged - smart move by the supporters.
18th December and they have most of the votes already so it’s a done deal. Don’t forget that bastard hedge fund only 30% of the equity here too. This has been a setup from the start and they didn’t say anything about working capital requirements in the full year results in June. Shareholders have taken most of the pain during the CVA, and Meditor will reap the benefits.
Interesting. I hold a small amount of this stock.
What do they need to get it through??
My view this is a low ball offer to get it on the cheap using the debt as an issue. Sounds to me like trading is ok and they need to get the deal done asap before they release any results.
What are timelines now ?? I will have a look and vote against.
It was just to prove that Olayan has had historic interest in buying the company as part of a consortium for £850m/£900m. Olayan group are huge investors with several billions to play with and own around 12% of CPR and have done for 15 years and took up their full rights in the fund raising. Key thing is that they have not pledged support for the 5p offer
Jinny122, that report was posted in July 2007. Way out of date.
I wonder what will happen if the bid is rejected, as the current offer is woeful. I can see that Olayan has not consented to it yet from the info we have. Olayan supported the 2007 takeover attempt at £850m and have held the stock for more than 15 years - I doubt they'll find 5p anything but woeful.
Looking unlikely now so going once going twice
Sold to the hedge fund for 5p.
Yes it is a hedge fund getting a bargin and the Bod are happy to go along for the ride.
Is lord harris lurking???? Another 500k trade today
October 2007 half year results: Net debt £41m, Sales £250m, profit £27m. There was an £850m takeover bid for the equity put in on this basis and citing tough market conditions.
October 2019 half year: Net debt £27m (much lower than 2007), sales tbc and profit tbc (but expected positive after rent reductions and £19m cost savings). But the business is being sold for £15m equity value (less than 2% of the 2007 bid price).
Can anyone explain this phenomenon???