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"Interserve brand reputation will be massively damaged and at some point the Company name will have to be changed."
When Mouchel was taken over by the banks in 2012, the new company replacing it was named MRBL. But who the hell has ever heard of MRBL? The company reverted to Mouchel shortly before or when it was acquired by KIER. Clearly they believed that Mouchel was more likely to win contracts than a company (MRBL) that was largely unheard of. KIER later sold Mouchel to WSP, who decided that the Mouchel name no longer carried any qudos, so it is now just part of WSP.
There are a number of other issues in disolving the Group company.
How are previous liabilities, eg. Defects, dealt with
What happens with current bonds that are in place
What happens to Parent company guarantees
What happens to the Group pension schemes
What happens to Employee long service
What happens to Employee bonuses
I guess that the Bod are just hoping for the best as it sounds easy disolving the Group company on the Friday and continuing as nothing has happened on the Monday. In reality I expect it is not that straightforward.
Easy 1604,
I agree with Kenj, the vote could go either way and the Pre Pack Administration is now a real possibility unfortunately.
Communication from the Company to the Supply Chain and Clients has been poor imo. They have not clearly explained what the Pre Pack Administration would mean for them. Hence your question.
If Pre Pack Admin happens then firstly as a Shareholder you lose everything. Your shares are worthless.
How it will work is this....
On the Friday if the vote is lost. The Interserve Group company will sell off Construction, FM, RMDK and all other parts of the Business to the Lenders (for the price of the debt). The Lenders may call the new Company (which owns all the old parts of Interserve) as InterserveB or whatever, they decide change the name to.
The group company PLC will then be put into Administration and no longer exist.
The Board Directors of Interserve will (as part of the pre agreed deal) become the BoD of the new "InterserveB".
On Monday morning all Interserve's current work will continue as usual but carried out by the new company. Subcontractors and Suppliers will get paid as before and Clients will receive the service they are paying for.
So as part of the supply chain you will be fine.
But the big losers will be .....
Firstly the existing shareholders who receive nothing - just an explanation from the new Company saying it was necessary.
Interserve brand reputation will be massively damaged and at some point the Company name will have to be changed.
Employees may be unsettled and churn rate could increase.
There will be costs associated with the Administration and setting up the new company that Interserve could well do without.
The new company may well be de-listed as will be a private company owned solely by the Lenders and some of the BoD maybe as a payoff for promoting the Lenders deal.
So a final note to existing shareholders consider the current risks. This may not end well, so consider this time next week your shares could be worthless and make your own decision on what to do.
No one knows which way the vote will go. Not even the Bod.
Easy1604,
No one knows how this will end up, but the general consensus is that shareholders are not going to fare well out of it. If the vote is FOR the refinancing, shareholders face up to 95% dilution, or spending almost £3 per existing share to maintain their current position. Then there is the threat of privatisation if enough shareholders do not buy their new shares in the Open Offer. The company have threatened a pre-pack administration if the vote goes AGAINST them.
I suspect that many shareholders have sold out facing such grim and uncertain options, and large holders like Coltrane and Standard Life may also be reducing their positions. I don't think that even the board know which way the vote will go.
Mouchel were in a similar position in 2012. The EGM vote went against the board, and the company entered a pre-pack admin, and within 24 hours was sold to a new company formed by the banks and directors. The company continued to operate as a going concern, and I assume that the supply train was largely kept in tact, but that is purely guesswork on my part. The shareholders were the only ones liquidated as far as I know.
So can I ask what that conclusion is? I am new to this site and am a supply chain to Interserve and concerned to which way this vote will go. Pre pack admin would be disastrous for my company given the exposure i have with them.
Thanks Metamorphisis84, and you too.
I think pretty much everyone has come around to expecting the same conclusion Kenj, so there is little in the way of discussion to be had! Have a good weekend.
Only one post on this board during an active trading day!
Has everybody sold out, or committed suicide?
Administration would be a disaster for Interserve (imo).
The Lenders appear to be buying shares to try and get their deal through.
The outcome of the vote will be very close and could go either way.
The BoD are gambling with the future of Interserve.
How to win the vote.....
It does not appear that the Lenders will move towards Coltranes' proposed deal.
So there is one other thing the Lenders and the BoD could offer to secure the deal (which is terrible) but better than Administration.
The Lenders and the BoD need to confirm now that if their deal gets through the Company will not be de-listed.
Aberdeen Standard Investments have alluded to this in their statement.
The BoD need to get this guarantee, to get the votes they need to get the deal through.
Feilb- most likely the lenders. Don’t see anyone trying to build a big stake here now. Interesting question is whooped selling this kind of volume? Standard Life I suspect.
A major shareholder has thrown its weight behind Interserve’s board in the their ongoing struggle for control of the outsourcer against US hedge fund Coltrane Asset Management.
Aberdeen Standard Investments, which controls 4.6 per cent of Interserve’s shares, today endorsed the firm’s rescue deal designed to to stop it going into administration.
The deal needs to win 50 per cent of shareholder approval at a vote on 15 March to go ahead, otherwise Interserve will go into a pre pack administration, but 27 per cent shareholder Coltrane has opposed it.
Andrew Hunt, Investment Director at Aberdeen Standard Investments, said:“We recognise the financial challenges facing the company and believes that the Deleveraging Plan is in the best interests of Interserve and all its stakeholders, including shareholders, as a whole. We believe that the plan should be voted through and that Interserve remain a listed business.”
It comes after two major shareholder advisors said they supported Interserve’s deal, first Institutional Investment Services (ISS), then Pensions and Investment Research Consultants (PIRC).
Circa £1.5M shares purchased after close.
Who is buying ?
The Lenders to ensure they get the their deal through?
Mysteryguy
As the current share price is below the Offer price there is currently no incentive to take part in the offer.
If you want more shares you could just buy them now and get them cheaper.
Imo the SP will go even lower as there is a risk of administration (if the deal does not get voted through).
Also as I have previously said, if the deal does get through there is a big risk the Lenders will de-list the company.
There has been lots of "twists & turns" recently, so something may change and the SP could go back up. But I believe that less likely now than administration or de-listing.
GL
Expecting a collapse and pushing for a collapse are very different things Mr Horse.
"What a lovely thing to say, never mind the employees who lose their jobs or the supply chain that goes unpaid and goes under."
Its the way I feel, pretty sure most employees will get jobs working elsewhere for a better company and I`m sure the supply chain has IRV on a pretty short lease after all the goings on.
The banks, Emereld and the BOD (who will get their nice bonuses) are the big winners, you`ve been pushing for this to collapse for ages so don`t suddenly change your tune!
Holders of Interserve PLC Basic Entitlement (IRVBAS.XLON.GB) shares have the right to subscribe for Interserve PLC ORD 0.1P (IRV.XLON.GB) shares. Each entitlement held gives the holder the right to purchase a share for an exercise price of GBP 0.153000. For holders electing to subscribe, subscription monies will be debited after the 12 March 2019 and new shares are due to be allotted on or around the 19 March 2019. Elections must be submitted by 12 March 2019 otherwise the default election option will be applied.
Could someone more experienced please explain what this actually means? at the moment 15p is actually marginally higher then the standard ask price now so whats the incentive, if any?
I received letter as well. however, I have already sold . why I got the letter? anyone knows?
"I hope the company goes under even if I lose a few bob..." What a lovely thing to say, never mind the employees who lose their jobs or the supply chain that goes unpaid and goes under.
thanks for oilex, but I am being carful with the oil price as it is.
if you look prem oil took a big hit. if the price isn't near 70 to 80 it all gets shocked. sub 50 some cant make a profit and sub 35 none can
it is interesting to note you can run a petrol car on sour oil without refining tho........
at 35 a barrel if you can run a rols royce like that you could feel like jed clampitt on Beverly hillbillies tho!
From the chairman who let the company rot on his watch is it really surprising to see a grammar error in the last paragraph!
""our customes and our shareholders and unanimously recommend that you VOTE IN FAVOUR".
No they don`t! Pathetic, I hope the company goes under even if I lose a few bob...
Toplink
I had a letter too, I emailed mine and they will charge me £20 plus VAT just to vote!
Had one today as well. Does make mention that if you hold shares through an intermediary you need to instruct them how to vote on your behalf. Mine has to date remained silent has anyone else been contacted by theirs or ignited contact with what result?
pbody,
check out oilex - the BB is full of rampers, but could come good and entry point now is ok
a begging letter from the chairman in the post, imploring me to support the deleveraging plan.
What a neck ! If the directors who are recommending it are not going to take up their allocation how can they expect the rest of us to cough up ?
Good money chasing more losses .
pbody
I like a punt, so just bought in to FFI aswell
Cheers