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Good news indeed. Do remember that there’s around 273 Million shares issued, so £550m. Hence if everyone took up the offer, which I doubt of course , you’d get 20% of your holding at £2.50. In reality, it’s probably going to be around 50%.
I agree with Dallo's point that the amount and strike price could have been higher. Although perhaps when the milestone money lands they will do another for say $100m at £3. In which case, this approach would probably have a bigger impact on the SP?
I bought at £4 years ago.What do i do now?
Seems like a good move, shores up the price for a long time. Gets us to April Stella results.
Rewards any holders who want the premium vs historical price. Removes holders (probably all) that think £2.5 is good value.
Opens door to setting the precedent.
Also will get a lot of coverage now
....less shares available to buy then assuming the company continues to be successful, the higher the SP should go. Far from waiting for the buyback, I just bought more!
I'm never sure about strategy on tender offers, although this one appears better than some I've seen recently so maybe I'd be prepared to let a small percentage of my holding go. What are peoples thoughts?
Great minds think alike.
I thought it should have been $200m at buyback price of £2.75 but not bad nonetheless.
Let's see what the market says today.
Still with $500 million in the bank and possibly more with approval milestone and potential deal on the royalties with BMS. I’d expect any further monies related to the Karuna deal to be distributed out to shareholders via tender offer towards the end of the year.
Great news this morning. Will be nice to see some large green candles for once.
Behold the pro(phet). 😂 nice call dallo. Glad they didn’t do an acquisition given their share price
Dallo ????
They also bought 20 mil share in on market purchases which are held in treasury
'The capital return of $100 million represents approximately 14% of PureTech's market capitalization based on yesterday's closing price.'
I think you've misinterpreted the 14%. I don't think there's any limited (noted in that RNS anyway) for the proportion of your holding that you can apply to tender.
So I guess you apply for your allocation and get a pro rata share ? Kinda works for people new to the share holding but only for 14% if your holding ?
Nm
I bought at £4 years ago.I have a feeling i would be severely disadvantaged if PRTC bought back shares.Am i getting this wrong
To finish the point should Treasury shares be reissued in the future at say £4/5 it is a benefit to existing shareholders who hold at say £2 as the proceeds are available for distribution eg a dividend of say 5% is more valuable to the £2 shareholders if you see what I mean.
Remember shares held in Treasury are a hidden asset to shareholders insofar as these shares can be reissued by the company in new shares for funding without prospectuses, offer documents etc and the resultant funds form part of the distributable reserves of the company for dividends.
Oldernowiser
I disagree with your suggestion of a 15p dividend.
If the company feels its shares are undervalued then it should make an open offer to existing shareholders to buy back their shares at a premium ie each shareholder would be offered say £2.75 up to a maximum of 20% of their holdings costing the company approx $200m with these shares then held in Treasury.
Puretech would still have existing cash of c$300m plus balance of Karuna proceeds of $100m plus royalties due from Royalty Pharma of $400m and additional royalties, milestone and sub licensing payments from Karuna over the next few years.
Alternatively or in tandem with the offer ,Puretech should look at a major acquisition to add to its portfolio .
There are so many possibilities available to them now and Puretech management need to be innovative to drive the SP higher after 10 years of underperformance.
I can't believe the SP is still languishing at £2 after todays RNS.
I would prefer to hear that we get a prettysmall dividend but a policy to continue paying incremental regular dividends wherever possible -Plus a one-off special of, perhaps 15p. This would strengthen the co going forward.
Absolutely nothIng would surprise me re Puretech
Please don’t let it be a share buy back. That only helps the dumper at £2 …
A return like this should be a dividend givens it nature .
Let’s see. Gla
Karuna tweeted deal completed with B Myres
No I don’t think it drops off the share price, fully . so I’d expect 60-90p dividend , plus maybe some share buy back.
For the share to move to c £2.50 off the back of the announcement then to drop to c £1.7 after it is ex div.
£1.7 conservative, depending on the royalities noted . A £1.7 ex dividend, it means prtc has cash to 2028 plus , royality income of several hundred million, £300m cash on b/s (even after div), and potential ipo of founding entity. Vs a market cap of £475m or so …
Seems very fair, you could argue there will be a limited drop after the ex dividend date, easily I suppose
With shed-loads of millions of $$$$ about to be paid to it. Still I'm prepared to wait a bit.