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Odyzean already own 55% they have effective control.
The whole thing looks dodgy to me IMO
Daves, a profit is a profit nice one!
The 40% calculation is incorrect. You have applied it to all shares rather than the new ones.
Callum, I agree you say its a little under handed. However I take a different point of view. I like the fact that 55% of the shares are effectively out of the market and makes this share harder to short. All depends on your entry price and time horizon. For me I know I can hold this company and sleep well knowing one day they will be in a better pkace. Thats why I added the other day to obtain more rights. I know I mentioned this before but it's the quantitative easing that is the big player in the markets. For an example I've a large weighting in Insurance, it won't be long till inflation starts to go up, 18 months I think till it starts to kick and then these will steadily move higher. Irrelevant of covid
If you look back at 2008 and how much money was printed then and look what happened to the markets. Now look at how much has been printed with this crisis. Add to that the fact that the world basically came to a standstill. I believe there is so much pent up demanded and consumer savings that there will be a ridiculous boom. Just look at the money going into bitcoin to preserve wealth. Boom means increased infaltion which equals interest rate rises. Trick is to position your portfolio accordingly. All companies like MAB who are re arranging their debt are setting themselves in a good in position for the future. All we hear on the news is stock market bubble ready to burst. They fail to mention how much money has been printed. Where are the ridiculously hight P/Es there are a few though. i remember and got burnt in 2001 that was a bubble. GLA sorry but just want to lift spirits and share my point of view
Hmm good arguement,it's hard to know with this share .
Maybe your right ,maybe your wrong .
Guess we will find out in the coming months and years .
GLA
Anyone who does not take up their options at 210p is just handing Odyzean more of the company at a discount price, which is what they want.
I agree u need to take up options but also be aware that in the short term the price may drift down due to the dilution and the general tendancy of price to drift to option price .
I estimate it head to the 2.60-2.80 mark ,just a guess
The theoretical dilution price on offer date was 294p. We are slightly above that at present. Where else could you buy 300p shares for 210p. Odyzean will be happy to mop them up if you don`t take them.
I’m used to RIs where you can sell the rights but here there is no such option. As I held MAB on the 19th I qualify but won’t the SP just move down towards 210p now? Why not sell my shares and take up the offer at 210p? I’m not keen on LTH now as this is now a takeover without the big rise imo.
What’s stopping PIs selling up now and buying back at 210p and then banking the profit immediately? Or is this the passive takeover part?
MAB shares are now trading Ex Offer. The offer shares are non transferable and non tradable.
Anyone buying in the market at today`s price has no access to the open offer and would therefore not accept any further dilution. You are free to sell MAB shares in order free cash to take up your offer shares.
Far more likely to head back to £4 this year in all likelihood
Based on the current share price I would expect the share price to fall to about £2.78.
My logic says that if I do nothing I will therefore lose about 9% unless I take up the offer.
It is irritating that I am being forced to take up this offer, why not have a rights issue?
"What’s stopping PIs selling up now and buying back at 210p".
How do you buy them at 210p?
I mean selling my holding now at 310 taking my profit and then taking up the offer to buy the smaller fraction offered at 210, then selling soon after at some price over 210(assuming it is) and moving on from mab. The profit from this could come by holding but it seems easier this way and seeking other opportunities. Hence this way increases the holding of the companies seeking a takeover without paying a much higher price.
I assume if you sell now you will not be entitled to buy at 210.
That’s what I’d expect too but so far can find no mention of it - only that you need to be holding at close on 19th Feb to qualify. Anyone know for sure?
From mbplc.com it seems to me that it is your holding on the 19th feb that is used to determine the allocation you get, even though this is scheduled for next week. I’m surprised by that but it’s there in black and white. DYOR but I’ve sold most of my holding and I’ll apply for my full allocation hoping the SP remains above 210p (might do some estimates on that first!)
Record date for Open Offer was 17 Feb
Ex offer date 22 Feb (8.00am)
Your broker should have applied your offer shares to your portfolio (nil paid). Pay for them at 210p or they will disappear at the end of this week.
If you have sold your shares since 22 Feb you still have your Open Offer shares available to purchase.
Thanks pseudonym. I’m used to RIs, this is a bit different. Have taken up the open offer shares having sold most of my holding a few days ago, hoping for a quick profit next week :-)
I've done similar to Peltata, sold enough of my holding to cover the cost of my allocation. Seems like a bit of a no brainer, especially if the sp holds up, which I don't expect.
It seems too good to be true. Why hasn't everybody sold their holding whilst it was above 210p and then buy their allocation at £2.10.
Why would anybody buy shares now knowing that the value is bound to fall in the near future?
It does encourage people to sell and I suspect the buyers would be Odyzean. They avoided a takeover and choose this method instead, investors will also take the opportunity for a quick profit with allocated shares too.
I reckon odzyean own or will own 70 to 75 of free float at least that what I reckon after open offer.
They control share price.
Plus when you take into account most employees in these companies tend to locked in.on.share plans then very small free float.