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10.4p worth waiting for.
"On the basis the Tender Offer is fully subscribed and all Shareholders are Eligible Shareholders, each Shareholder shall be entitled to tender 1 Ordinary Share for every 1.485 Ordinary Shares held by them on the Record Date. Shareholders do not have to accept the Tender Offer..."
norrab - you thinking of holding to the final curtain to see if there’s any more increase in NAV once everything is done and dusted - not that it will possible to sell all holdings at 10.4p in current tender if fully subscribed. SB
Not addressed to me, but why would there be any appreciable increase? There may be more or less I suppose.
There may be something in the wording, “return to Shareholders of the ‘maximum’ amount of remaining available capital”.
Hi Culpepper. I guess I was suggesting that the company was likely pessimistic in estimating the costs to close its trading operations - which are now the costs to wind it up full stop - and as such the savings which are being made have already been reflected in an increase in NAV from 9.6p at first tender to 10.4p at second tender and that pattern may continue with the final payout. At that point there will be c.80m shares so a $1m upside in distributable cash adds a decent gain to NAV. But the opposite also applies if costs are higher! Interesting on see if IIs tender their full entitlement. SB
Hi Silverblade, will the company be able to distribute any cash after the company ceases to trade on AIM, especially if the shares were held in crest by a broker on your behalf.
There is a problem if shares are held in a ISA & cease to trade.
Regards SKK
Hi Sinkenken. Good points. On the first point - the reason for delisting appears to be sound in terms of some cost and regulatory benefits - but given there is no appetite for an RTO and the decision had been taken to wind the company up then a delisting was inevitable anyway post July - and given the timings on winding the company up may run beyond that they are probably just sorting it out now. At the point of delisting we will not be able to trade any shares we retain in the company post tender offer - so we would be ‘locked in’ until the company makes its final payout. We would be investors in a private company which remains subject to company law - and it’s major shareholders who have made their position pretty clear - maximum cash payout please. I don’t see any risk to this final payment other than the caveats on price and timings. On your second ISA point - not sure - I have not been an investor in a fully delisted entity in a tax wrapper - I’ll see if i can find anything out - and there is the potential to raise the issue as part of the investor dialogue at the general meeting. ATB. SB
In me experience on delisting it comes out of the ISA, and into a non ISA account with the broker. Future payments into that account.
Having looked into this Culpepper is correct in that you cannot hold private company shares in an ISA - so it appears the final payment post delisting would be outwith the tax benefits of an ISA in relation to capital gains in addition to the loss of those funds from your ISA shares account. Something which might impact on individual positions as to whether to hold or sell. SB