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All buys going through now.
Just out of auction…that was long.
Agreed actually Tosca Fund are currently the largest shareholders and their stake has frown to over 29% they could easily now go over 50% and take the fight to Carlyle. They also have some very experienced Fund and Asset Managers from backgrounds ranging from JPM to UBS and others and are also known for their own aggressive actions. Carlyle might have a fight on their hands. This share is currently up 29%. For cashflow the position is getting better everyday as more airlines chose London Southend for their new routes. Just take a look at the Southend airport web. currently on offer flights to Milan starting in a few days.
IN AUCTION for past 10 mins+
LOOK at trades 241-244, those are rather large.....are they TOSCA going over the threshold.
Supercharger,
Unfortunately, the problem is liquidity and cash requirements for London Southend Airport. This is diminishing quickly and Esken needs to find a way to find this.
Carlyle and Cyrus just offered a funding solution at the cost of shareholders.
Esken currently has no $$ to fight billion dollar funds in court, nor do they have money for the continual operation of London Southend Airport.
So in a bit of a predicament.
With recent news, I'm sure a lot of shareholders would have exited.
Only way out of this is:
- if the funding proposal by Carlyle/Cyrus is somewhat positive for shareholders
- Takeover by a separate entity.
Time is running out.
I would like to think the largest shareholders will be pushing Esken to protect their asset. The usual way for American Comps is to hit hard at first and then settle somewhere in the middle. i.e. High Ball/Low ball scenario, etc of negotiation. However as has been said if the UK Lawyers are so confident that Carlyles Lawyers are wrong then they should be giving a very hard response and disputing this. I would like to think a Company running at International Airport such as Southend will also have good Insurers who will also have good lawyers. In Insurance as said before the way forward is to approach the court and ask for a legal "standstill" which gives more time to discuss and consider under less pressure where all parties might be able to come to an out of court decision. If Carlyle were in the states and are wrong no doubt punitive damages might be due to Esken-who knows which way this could go. However the courts would need to give a fair and balanced view on a business recovering post pandemic so I will hang around here and wait for developments. DYOR but to me it is not worth selling any shares anyway but might be worth buying some more when we have some positive (if) news. I am quietly confident but may be wrong no one gets it right every time but I do have a feeling this could turn out alright in the end, even for small holdings such as I have.
Am asking myself the same thing! My average is very low as only got in recently as a punt knowing it was all or nothing.
Still a very high chance of failure but any positive news and it’s a tidy profit - not gonna lie essentially a gamble ha.
Not investment advice
Is it worth investing a few more quid into here?
Final 10 minutes of normal trading (from 4.20pm) onwards the share was in auction. This is very unusual.
Supercharger I hope you’re correct!
What worries me though is the following:
‘The recapitalisation proposal includes a commitment by LSA to make an application to court for a restructuring plan under part 26A of the Companies Act 2006, absent Esken and EAL agreeing to the terms of the recapitalisation proposal.’
So basically even if Esken don’t accept on a consensual basis (which itself they seem to suggest will have an adverse impact) then their hand could be forced through the courts. Classic Carlyle attempting the asset grab.
I would like to see Esken fight a bit stronger if they truely believe they are not in the wrong. Otherwise it doesn’t seem like it will end well for us.
If I’ve missed something happy to be corrected
Maybe Schroders, Royal London, Hargreaves, & HSBC and others may have something to say? Let's face it after the $30 Billion results release for the year from HSBC they could cough up the £200m to pay off Carlyle in their sleep.
As I say we have not heard that Esken will even accept the Carlyle proposal in anycase and they have said all along they disagree with the Carlyle findings, especially at this time where the Airport is expanding its operations into and across Europe's major cities and therefore its income is growing post pandemic-they just need more time!
I think it’s quite apt that whenever I type Esken in the search bar my autocorrect changes it to ‘wake’ - this share is RIP.
(I hope there is something to salvage but it seems Carlyle are twisting the knife in. No point selling now)
Existing major share holders will lot let this go for cheap
The Carlyle deal is not done yet, and I am pretty sure the likes of the major existing shareholders where they are some big names invested will want a recovery in what they have paid, etc. Maybe the likes therefore of Schroders and Royal London, etc and others who own shares will come in with an alternative proposal to look after their own as well as existing shareholders interests? Regret I am just a small holder (otherwise to me) looking at the potential this is a snip!
Stake under 30% according to this article.
https://noah-news.com/gb/en/business/2024/02/19/london-southend-airport-faces-ownership-reshuffle-amid-financial-woes
Tav-there are too many airports in the U.K. and not enough flights
Why on earth would the taxpayer bail this out?
Supercharger - no jobs at stake therefore no votes at stake therefore zero government interest imv.
some of you will know i’ve been calling this down for years-got pilloried by several for pointing out the gaping holes in the balance sheet.
this group has been in trouble since the days of tinkler.his removal simply saw an end to crazy deal making with debt and bull****-they forgot debt has to be paid back, particularly when ‘pretend and extend’ ceases to be available
it’s game over in my opinion-equity totally worthless and whoever picks it up will still need to feed a cash devouring white elephant
Https://www.bnnbloomberg.ca/carlyle-cyrus-plan-london-southend-airport-takeover-to-end-debt-dispute-1.2036463
Minority stake in LSA of
See a rescue afoot from the UK Gov, or from someone like Prudential Or Phoenix where £200 m to repay Carlyle Group is small beer. Otherwise I can see existing shareholders will be asking for the Esk management to explain themselves as they have not been offered the protection they should have. Or an existing shareholder might take up the reins? There are still some very large investors behind Esken going back to the Stobart days who deserve more loyalty rather than a quick fire fix. Courts would also provide more time too so how about a standstill to protect shareholders rights!
The other key factor is that it is ESKEN who have negotiated this and not the other way round.
Spread too wide atm for me.
Offer bid has tightened ,Bounce on.
Monumental drop…doesn’t look justified at all, settlement according to below article sees Esken reduce stake under 50% but market had assumed stake slashes right down to single digits. To will tell of course dyor