The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Looks like the shuffling has all but completed, free movement both ways
So much news due:
NCA disposals due for completion by end of February
Bond renegotiation
20m loan agreement
TR1 of Cyrus out
LSA offer can come in any time
Massive re rate on the cards if it lines up....or bust
10m mcap
IMO
Great start, this will do a POS IMO
Reckon it moves to around 10p+ levels pending a bidding war for LSA which could go for 25p+ net
Will be a quiet move too over the next couple of months
All IMO
Another 500k buy, decent volume here - looks like value hunters
TICK UP
As detailed in the Group's interim results published on 29 November, Esken is making good progress in respect of addressing the maturity and terms of the Exchangeable Bond and towards the sale of its non-core assets. As such, Esken is continuing to progress the process to seek a new owner for LSA, with a view to crystallising shareholder value through securing the right long-term partner, who both recognises the inherent strategic opportunity and is best placed to support future growth.
AUCTION
Obviously feeling pretty confident BlueCrypto, well played sir
2 x 500k buys already
Are the HERD arriving
Many thanks, I’ve held these shares for a few years, so basically it’s going to be all or nothing now
Sometimes its just a case of the market not catching on the opportunity until there is volume or news
Sometimes due to big shuffling between II's or sellers the SP get's suppressed until they're sorted - like they are here, but you do have TOSCA and RG adding
There is a perceived risk here, with it being the only asset and with the bond, but if they're successfully navigated then the SP won't be at these levels, it's in debt but has an asset far greater than it, with it only being 10m mcap.
It's a matter of risk reward, and its looking like 10-15x or bust IMO
See the likes of POS, heavily suppressed then manages a 10x without anyone really noticing
I have that feeling here
DYOR ETC
New to this, I have a question if there is a possible buy out with a much increased SP why isn’t there a rush on to buy these shares at the low current value ?
Yup the bond extension comes in this flies as it paves the way to a sale of LSA...., but should see a near term recovery regardless as the shuffling comes to an end IMO
We should see a TR1 of Cyrus completely exiting tomorrow or soon
Tosca increasing to just under 30% gives me every confidence
As detailed in the Group's interim results published on 29 November, Esken is making good progress in respect of addressing the maturity and terms of the Exchangeable Bond and towards the sale of its non-core assets. As such, Esken is continuing to progress the process to seek a new owner for LSA, with a view to crystallising shareholder value through securing the right long-term partner, who both recognises the inherent strategic opportunity and is best placed to support future growth.
It was 400m peak covid with the bond, now that we’re returning to pre Covid numbers could be a lot more IMO
See all of the sign ups recently and how the travel industry is performing
And see Heathrow/edinburgh/gatwick deals
This won’t go cheap IMO
Absolutely, a 700m deal would put it at 45p post debt, won’t happen but I think 500+ may be possible.
The loan/bond extension should take this back to 10p + IMO as it means a sale is very much on the cards if the largest holders of both debt/equity are backing it.
They were touting a sale towards the end of last year, but would have had interest way earlier - so wouldn’t be surprised to see an offer land out of the blue
News on nca disposals to come too
All IMO
Why would Tosca throw in another 2% to take them just under 30 if there's no value
LSA was growing fast pre covid so under the right circumstances there is real value, hence the 700m valuation back then, carlyle lent the money at around 410m value, but what was real value - probably a bit higher
this is 15-25p or bust, not bad odds considering RG and TOSCA's recent plays.... 2 funds out though for balance....
All IMO
Who's going to buy South END Airport ?
Shares are almost zero.
500m would be sweet....25p!
Quite simple....there's a giant asset vs debt way out of proportion to mcap, rare to see any 15-25x+ opps in the LSE, plus its an airport
Just needs patience before this takes 'flight'
IMO
Very much agree, this has multi bagger written all over it
Think the market hasn;t caught on yet, but any deal within those ranges will see one of those rare 1000%-2000% moments,
All IMO
Dont think they will bid as they kept under a threshold, but news due on bond extension, sale/partnership
if LSA is worth say 500m post LHR deal then there's up to 25p value for SH, nothing compared to the highs of £2.70 but maybe some salvation
https://news.sky.com/story/stobart-lands-700m-approach-for-slice-of-southend-airport-11958629
There was a 700m pre covid valuation
compelling RR from these levels due to the sellers
All IMO
Blue finish. Weekend press coverage of potential Tosca bid....?