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If only it was real!! I note however that the price has been rising since open which has to be a good sign...
Held for a few months.
Standard mistake from the company, as they wanted to make money from the shareholders.
3 of my shares into 1 .
Sell. Sell . Sell .
Which i did , farewell.
" Readjustment of the index constituents (the companies that make up the FTSE 100) happens every quarter, usually the Wednesday following the first Friday in March, June, September, and December. "
Looks like a close call, £4b may be enough to keep in, but guess it'll depend when they reassess how all the companies have fared.
https://www.londonstockexchange.com/indices/ftse-100/constituents/table?page=5
Believe that's the latest statistics.
Good question - certainly both Melrose and Dowlais should be valued at c.£4b and c.£3b respectively but I am guessing those values fall just short of the FTSE100. Just a guess.....
Will Melrose be dismissed from FTSE100 after demerger?
Fair enough ftse , we will have to wait and see if or how much we may benefit from it then
TBF it was pretty clear from the Demerger Proposal section of the Chairman’s Statement in the Final Results 2/3/2023.
Ive been through a few of these processes and all I can say is that the city tends to give an indication in the lead up to it whether they feel the consolidation/split exercise is going to be accretive. The fact that the shares are going up in the run up to the split indicates to me that the powers that be who have way more knowledge than me think it’s a good deal.
Growth i think he was very harsh , that dowlais document is 194 pages long , surely a simplified version could of been put out
I think it’s also unclear as to how this will work out going forward too and whether we’ll be any better off with the demerger. I have about 30,000 shares and am in a small profit. I am really unsure whether to hold on or sell now.
Bit harsh!, why can't the company just tell the shareholders what the terms are instead of having to go to another website and attempt to search for them. its not hard surely, no very good service for the investors of 'our' company. should be detailed on their own website.
Being a bit lazy GrowthmanPO!
Melrose web site, Announcements, all, 3rd March, access doc via National Storage! Tell you all you want to know.
Alternatively keep up with RNSs.
Quite simple really!
Has anyone got the details of this demerger in terms of the terms of the share consolidation and does the shareholders actually get any of the new company or a payment for it, also whats the timeline, can;t find anything on their website or announcements about it. Its all about what the new company will be doing not about us the shareholders. thanks
BoA price target to 181p , my target price £2.50
Dyor
Im out. Gkn = disaster. The market can’t forgive this lot for not finding a proper buyer. When what you normally do is double the value of something, changing that to making something 75% of what you paid then dressing it up with a demerger is not gonna fly..
Well, yet again, another share consolidation. Talk about having your cake ??, &, eating ??? it, at the expense of the share holders. Not good ??.
Don’t like consolidating co would have been better off without a demerger , would be interesting what valuation market place on the D? Revenue ratios aerospace & D 2.9b:5.2b, assuming sp should reflect accordingly pro rata basis , at current mv of £6b looks to low where as revenue is £8b+ , 2023/24 will be much higher given activities level increasing significantly! Any thoughts on potential post demerger split valuation ?
“a 1:3 share consolidation the night before completion of the Demerger, scheduled for 20 April 2023. Shareholders will then receive 1 Dowlais share for every post consolidation Melrose share they hold”
Sad to see it cant hold a gain! What on earth do they need to demonstrate to make the sp the 250p+ it should be.
I believe in the potential of both divisions but I am pleasantly surprised to see the shares up first thing when they utteredthe two words that usually send private shareholders and institutions into a whirl "share consolidation".
Expect some debate as to the virtues and impacts of such action over coming days!
Great results, well undervalued co; sp should be at least another 50% from current level compared to revenue gestation from both aerospace and D
Dyor
nice rise today! gla.
Thanks for raising the issue BigDee. I was a GKN holder and took the paper option and became a Melrose shareholder. Bad decision, I did sell a few MRO at about 173p but not nearly enough! The spin off will not be the old GKN and my experience of spinoffs is not good. MRO will keep the aerospace side of the original business which, IMHO, has the better potential than the automotive side. But every thing has a price and I expect to be reading a lot of guff when the documents are published early next month. Wait and watch, not very decisive but we don't have enough information at the moment,
Can anyone explain or have thoughts on what the demerger will actually look like for investors? I’m not sure I understand if it’s good or bad for us? https://www.thisismoney.co.uk/money/markets/article-11795655/Melrose-set-tight-grip-GKN-spin-off.html?ico=mol_mobile_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html&_ga=2.87398942.767550197.1676376271-1680171585.1667578049&_gl=1*za6qn3*_ga*MTY4MDE3MTU4NS4xNjY3NTc4MDQ5*_ga_XE0XLFFF16*MTY3NzUwMTc0MC4yODAuMS4xNjc3NTAzNDM1LjAuMC4w
nice article, well done. gla
Manufacturing buyout group Melrose is splitting but the opportunities in the two demerged divisions are not recognised, says Peel Hunt.
Analyst Harry Philips retained his ‘buy’ recommendation and increased his target price from 195p to 204p on the stock, which lifted 3.4%, or 4.9p, to 147.4p yesterday.
The business plans to demerge its automotive and powder metallurgy arm – which will be known as Dowlais – from its aerospace division.
Philip predicted earnings of £575m will be delivered in aerospace by 2026 versus £180m in 2022, and ‘we believe this is conservative moving into recovery’.
Dowlais earnings are forecast at £560m in 2026 versus £330m in 2022, which Philips said is ‘realistic and potentially cautious’.
‘We increase our target price from 195p to 204p as we retest our sense check of putting the target margins onto 2024 estimated revenue,’ he said.
‘The improvement opportunity in aerospace is understated, while the resilience in the growth of Dowlais is under-recognised. The parts are worth more than the whole.’