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Dallo
I am also a longtime bull of this share has you know
But luckily for me I have traded it for a number of years now
With this pittance being offered to shareholders and the tender offer to lower the shareholding as well has the buyback
I smell an agenda from management to either sell the company or a management buyout for has cheap as possible??
This will also explain why the septics in the know are not kicking the doors down to buy it on the Nasdaq !!
I raised my holdings yesterday to my maximum hold and I am averaging 198.5 a share leaves me in a comfortable position whatever occurs ??
This outfit Dallo has been promising holders payouts for a good couple of years now not once have they kept their word !!
I hope you long term sit and hold gang get something in return!!
But I am afraid to say I am happier in my boat than yours!!
GLA.
As an uber bull on Puretech for many years I am very disappointed with today's crumbs from the table capital return strategy and have made my view known to the management.
The Karuna bonanza was a great opportunity to reward shareholders for years of patience and in my view , Zohar has blown it.
Not a happy camper.
H2Nick
I expect the arbitrage opportunity to narrow tomorrow and we will probably see the SP move to c £2.40 ish tomorrow to deter punters.
H2Nick
Given that the Tender documents are not approved and filed as yet it is almost certain that qualifying shareholders will be those that are on the Share Register on the date the Tender Offer becomes final so there is an arbitrage opportunity here at £2.20 for a 10% twist assuming all goes to plan.
.......FILL YOUR BOOTS TIME!!!
Imagine the publicity this is now going to get and do it now.
Dallo - thanks for that info !
H2Nick
Be careful on that strategy as the Tender Offer may only apply to holders who were on the share register prior to todays announcement .
Dyphne Zohars's response to Lesley that the offer may clear out some sellers from the 20% free float mainly is risible at I cannot see the Institutional investors with 70% and management with 10% selling very much.
At £3 a share and at extra $20m cost, loose holders may have been tempted.
Puretech have got the Tender price all wrong by suggesting the Board feel that the value of the company's shares is just £2.50 so why should investors pay more.
Big misstep imho but can be rectified by increasing the offer to £3.
I have said this to Kana for what it is worth.
Cheers
Contacted Daphne Her reply was clearing out some sellers would have a beneficial effect but she understands my point.
Dallo
Some folk might buy some now ~222 if they know they can sell for 250 next month ?
I just need to flog something else first...
SoundMan
I have emailed my views on this derisory offer which I suggested will fail miserably and leave us with a near $80/90m special dividend of 10% plus and we hold on on our shares for future shareholder returns to made by the company as per RNS.
I said to Kana that I bet none of the management shareholders will sell a single share at £2.50.
I await her response
ATB
Just noticed Dallo's comment from 11.09. Pretty much my view on the other thread, but Dallo is more articulate ;-)
£2.75 required to make me even look at the maths again, but PRTC is worth so much more.
The more I think about it, the more I can't think of any reason to sell any at 250.
In fact, it's illogical for anyone not in need of immediate cash to consider it if the SP moves beyond 230 when taking into account all the factors, even if they bought in at 150-160.
I can see a special divi coming and 90% failure on the tender offer.
The Pecker
CGT not a major factor as 70% of shares in Puretech are held by Funds with another c10% held by management who will not be selling one share.
As I have said Puretech's Board and shareholders would crack up with derision and laughter if a full bid for the company was made at £2.50 .
If the tender price was at £3 it may tempt a few and only cost the company an extra 20% or $20m which is nothing.
Lesley !!
Try looking 👀 on the bright side of life old chap
Either average down or sit tight and hope for a return on your 4 pound outlay
Not sure share trading is your forte !!?
There's no way PRTC would ever simply delist. It could get taken out by PE or any other major Pharma but it wouldn't delist (which is what I think you mean by being taken private, otherwise if you don't mean that then it's simply a takeover)
What if you dont accept a derisory offer and the company goes private
I assume that this has been structured as a tender offer so those shareholders (outside ISA and SIPP holdings) can get a better tax outcome as a CGT event rather than a taxable dividend?
Great idea if your sitting on a pile of loose change!
So I will double my holding too twelve thousand shares buying six thousand at 2.20ish
I will then take the tender offer for six thousand which will leave me with six thousand to carry on
Anyone who are in at much higher prices it’s time to buy buy buy to lower your averages surely??
In my view there will be few takers at £2.50 in the tender as most investors are under water here at £2.5
leaving the prospect of a large special dividend of maybe 8% plus and we can still keep our shares.
Best option unless tender offer price is raised to £2.75/£3
I will be emailing the company with my views.
ATB
It does say that "If the full $100 million is not returned, then the Company intends to return any remainder following the completion of the Tender Offer, by way of a special dividend."
If the price exceeds 250p by the time of the tender, no-one will sell and the whole lot will be returned as a special dividend.
Are the directors going to accept the offer?
Thanks Dallo very much appreciated
Lesley
You can keep your shares which I intend to do as the £2.50 , is on mature reflection on my part , derisory in a company with potentially c$1 billion in cash by the end of the year ( before today's Tender Offer).
On all valuation models the company is worth £4 a share minimum and clearly market reaction is decidedly muted today at this low ball offer.
Ask yourself the key question "If a formal bid for Puretech was made by a large Pharma today for £2.50 a share would shareholders accept it....no blooming way imho.
Not impressed.
If the markets improve further and we continue with further good news, the SP may sit above the tender offer by the end of April in which case the $100 million will be paid as a special dividend to shareholders instead.