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Does anyone have a formula to work out a "break even price" i have 3573 shares at 230p ( after the issue i mean) As I understand it I will get 7 shares at 122p for every 6 that I own.. I worked it out to about 170p break even? Thank you
Investec has labelled G4S’s blockbuster £5.2bn acquisition of ISS as a “bold, strategic move” that looks to transform the group from a single service provider (security) to a multi-service facilities management provider. “Strategically this makes good sense to us, as a multi-service offering maximises the cost-saving potential to clients…Strategically this makes good sense to us, as a multi-service offering maximises the cost-saving potential to clients,” Investec analyst Guy Hewett. At this stage, the broker leaves its hold rating and 280p target price unchanged.
I don't think there is a minimum number of shares in order to qualify. GL
14m buys v 11 million sells - most of whom don't know they've sold because of AT's Byron boy - can';t see any mention of minimum needed. Personally think the offer is attractive to new investors. couple of after hours trades at 248 for 56k and 66k, either wrong timng or MM';s playing a blinder here today?
what is the minimum number of shares needed to qualify?
Many thanks for your post, I think long term this will hopefully pay off.
Yes, you will qualify. They'll write to you. For £2 1/5k you should get another 2090 shares, I calculate, worth about £4 1/2k if the SP stays here at 220p. Will it stay at this level, or even recover some of today's losses? I reckon so, myself. If she falls to 167p - which seems very unlikely - then you'll have only broken even. As regards qualification, this RI isn't a gift, of course. The company needs shareholders to stump up cash for this major acquisition. Let's hope they know what they're doing. Nothing in life is certain, but I'm confident that this is good news.
I have just bought £4k worth of shares at £2.23, will I qualify for the rights issue?
Rights Issues for other stocks I have held had quite a damaging effect on the SP. Shareholders can see it as a dilution, and so the price drops. But if we're to be offered shares at a tiny 122p then she'll have to fall a long way before we'll make a net loss. I calculate a break-even point of 175p for people investing at an initial 238p. If you'd bought at yesterday's 282p you'd already be a bit peeved. Last year my National Grid shares bought at 600p fell to 500p during a rights issue. To buy shares at a bargain 335p seemed a wonderful opportunity, but when the dust had settled I was down a couple of percent. As for this GFS issue, I reckon that it's wisest to stick with it.
of 229's, fighting a declining ftse. Holding up well now considering...
It dropped to 235 and then seemed ok for a while and recovering before a 'proper drop'. People seemed happy to pay 235 but happier to pay 226 LP 228.4
Brave! Does appear to have stopped the slow drip. Was also looking at Aug 9th on chart, if theres anytime to take that jump today it may aswell be now. GL
Saw a nice 150k buy go through a while ago at 227. Hopefully this should underline the price
no one seems to be selling..............will have to sell something else to take up my share.....maybe a time to buy too??
Objective Hope so - in at 226 ish. Looking at its previous stability I'd hope for a quick bounce back to 240 ish esp if directors put their hand in
Been watching too, thas some rights issue though. Bottom for today?
i was waiting for a mega bid from KKR , and Nick springs this surprise. The rights issue looks generous too. is it a good thing long term?......I wonder
LP 226.5
Nice day trade coming up here if you can hit the bottom -18.4% FTSE 100 stock
Will shareholders be up for it?
A wealth of news here today and with the creation of the world's largest integrated security and facilities services group then surely this is a share for the future even despite todays drop?
Commenting on the Acquisition, G4S's CEO, Nick Buckles said: "We are excited to announce the acquisition of ISS to create the world's largest integrated security and facilities services group. Since G4S was created in 2004, we have grown our business significantly and have expanded our service offering beyond our traditional security heritage into much broader areas of facilities services and outsourcing to meet growing customer needs. We believe this acquisition will transform our business, significantly accelerate the delivery of our solutions strategy and create substantial value for shareholders. G4S and ISS have very similar cultures and strategic ambitions as well as a strong, shared vision for providing service excellence to customers across the security and facilities services spectrum. The acquisition will also provide significant opportunities for staff at all levels to develop and broaden their skills into complementary areas, as part of a team of more than 1 million G4S employees." Chairman of G4S, Alf Duch-Pedersen added: "This acquisition brings together two high quality companies and management teams with a very strong business performance and integration track record. We have a compelling strategy, significant experience in meeting a wide range of customer needs and in motivating a large and diverse workforce to deliver excellent service to our customers. I am delighted that ISS's CEO, Jeff Gravenhorst, will be joining the G4S Board and I look forward to welcoming him and the ISS management and employees into the group."
ACQUISITION OF ISS A/S FOR £5.2 BILLION AND £2 BILLION RIGHTS ISSUE Creating the World's Largest Integrated Security and Facilities Services Group G4S plc, the international security solutions group, today announces the acquisition of ISS A/S for an enterprise value of approximately £5.2 billion. G4S also announces a 7 for 6 rights issue at 122p to raise approximately £2 billion. The Acquisition has a compelling strategic and financial rationale and will: * Create a global leader in integrated security and facilities services combining G4S's 2010 revenue of £7,397 million and ISS's 2010 revenue of £8,522 million * Accelerate delivery of G4S's strategy to provide integrated facilities services ("IFS") * Provide significant growth opportunities and an estimated £100 million of annual pre-tax cost savings by 2014 * Lead to an investment of £20 million per year by 2014 in creating service excellence centres to share best practice across the enlarged group * Be a financially compelling transaction expected to deliver, within three years: * double digit post-tax ROIC * double digit EPS accretion * no PBITA margin dilution * Be funded in a manner to allow G4S to retain a BBB (or equivalent) credit rating The combination of G4S and ISS creates the world's largest integrated security and facilities services company, by revenue, profit, countries of operation and number of employees.
http://www.investegate.co.uk/Article.aspx?id=20111017070000H5163
Acquisitions & Divestments During the first nine months of the year, G4S has invested £38m in deferred consideration in respect of prior year acquisitions and £38m in capability- building acquisitions such as surveillance, fraud, intelligence and investigations services, offender monitoring technology and coin management services. Financial position Our financial position continues to be strong and we remain on track to meet our cash conversion target of 85% of PBITA for the full year.