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Retail bond price seems pretty relaxed about today's announcement.
Again, hope you're right on all counts Penta. Fingers crossed.
This isn't rocket science, Inglis only needs to sell £80 million of offices, call it at 11% yield. His made the situation bad by in action.
And the situation would be stabilised.
Don't know why his hanging on, he needs to call his mates I other REITS/property sector who have cash to buy a good 11% yield.
The dividend should be paid in script not cash.
This is bieng made into a debacle, the market is valuing the company at £60million plus debt now far from the so called NAV.
Wake up Inglis get a move on.
@Krusty, ah yes i see. under that assumption it tracks. but we're not there yet IMO(I hope). i'm not gonna agree or contradict the likelyhood as all of our input is quite equal here. But i understand the point of view.
i agree on the logic that it would make 0 sense to pay dividend if the bond was at risk. But that is also just our assumptions. What may be (il)logic to us, could have another reasoning behind it, that we have no idea of.
Maybe management was acting under the assumption of ongoing options and considered it a non-risk. Aside from this horrible RNS (lets assume forced by info leak), it could be that various options are on the table.
We can just hope that the RNS has not changed The terms that were already in motion.
Agreed re divi. I assumed things were in train re bond when they announced the divi otherwise it would be stupid but they obviously are stupid after seeing todays making a bad situation worse
They really need to get this resolved this week after todays clanger
Penta, see my post at 8.55 re valuation. I sincerely hope you & Roger are right but I can't see it I'm afraid. What the hell they're doing paying a dividend when they've got a £50m bond to settle in August is beyond me. Seen these situations before, when things start going bad. Never ends well for ordinary shareholders. Let's see what happens next.
Should anyone try to call the Investor relations chap,quoted on the RNS,they have quoted the wrong telephone number.The correct number is 02038319700.Anyone surprised?
There is an alternative. A members voluntary winding up; better than a creditor's voluntary winding up. Time to act now and kick out the BoD. They've been given every opportunity to try and resolve a problem of their making (the last portfolio acquisition should have been financed by an equity raise not medium-term debt). It's now time to save value for the members; an orderly wind down rather than a fire-sale
@Krust. its not thou is it? 700+ in investments assets + the other assets (900m FY22) vs 500+ in liabilites.
Last reported FY(22) equity was 400m with a nav per share of +- 78p
Yes, the bond thing is not ideal, but we're still in a business that annually generates 35m in dividends alone.
saying its virtually worthless is a bit of an overstatement imo
Strangely there are a lot of buys today. Someone sees a recovery.
You might not like it,but voting against an equity raising would guarantee shareholders would lose everything.
An orderly win down cannot happen unless the bond is refinanced.No time. Equity value is retainable with decent breathing space.
Once the equity raising rumour is out there unless the company comments they would be creating a false market in the shares.Forced to announce.
But,this is the time to lobby the corporate advisers to change the Board and get Inglis off it.
You might not like it,but voting against an equity raising would guarantee shareholders would lose everything.
An orderly win down cannot happen unless the bond is refinanced.No time. Equity value is retainable with decent breathing space.
Once the equity raising rumour is out there unless the company comments they would be creating a false market in the shares.Forced to announce.
But,this is the time to lobby the corporate advisers to change the Board and get Inglis off it.
Penta, the company is virtually worthless (it's assets are roughly the same as it's liabilities) so who is going to participate in a raise? Would you? As for banks lending them more money, we're in Amigo Loans territory.
I'm baffled as to why this was announced today. Expected details to be on 26th with ARA, as per recent Edison note.
Why would anyone announce this?
You either - stop trading & launch the raise - or - you announce the financing has concluded.
All this does is shoot themselves in the foot. Lower share price = bigger dilution & Better bargaining position for the banks
"Portfolio value 20% discount: £560."
In a firesale? Not on your life. Take another £100m off. (say £460m + £30m est. remaining cash).
Then pay off the debt (£437m) and settle the bond (£50m).
That leaves about £3m for fees associated with the sale, and nothing for shareholders.
Total Debt = £437m
Cash = £40m
Portfolio Value £700m
Portfolio value 20% discount: £560.
Shareholder value: £163m
Shareholder value per share: £0.31.
They are doing this to milk the fees. Im voting NO.
A firesale could clear the debt, might even be enough left to cover the bond. But there'd be nothing left to distribute to shareholders.
Not just tacit approval of Edison report, they paid for it and authorised its publication. The clues have been there about questionable management all along, before today's RNS for those willing to listen. Unfortunately for shareholders it's now entering that doom loop scenario I mentioned where the lower the price of the equity, the less they can practically raise and it fast becomes existential.
Anybody
Sharehold action group??
Can't believe that RNS
They helped to create the speculation with the latest Edison research note (which must have received their tacit approval)! This is the final straw. The manager and BoD must go.
I think there are still one or two here who don't realise how serious this is. Who in their right mind would lend them money, or buy more shares? The bondholders must now be getting extremely anxious, and for shareholders (who are obviously further down the food chain) this looks pretty gloomy. We need someone to come in with an offer to buy the lot and pay the bond, but that will mean they'll want the business for virtually nothing.
MY VOTE GOES FOR A MANAGED WIND DOWN OF ASSETS SO THESE LEACHES GET NOT A SINGLE PENNY MORE IN FEES.
ALL THE ROADSHOWS AND BULLSH*T PRESENTATIONS MEAN NOTHING WHEN YOU ARE AN INCAPABLE & INEPT HUMAN BEING. CLOWNSHOW. FROM A SUBSTANTIAL SHAREHOLDER. VOTE IT DOWN. WIND IT DOWN.
What a silly RNS - making it more difficult to raise capital and inflicting even more pain on the shareholders; I continue to hold the retail bond, but not the equity.
Unbelievably stupid announcement. You either announce refinance or wait until you can. This has just added to the enormous uncertainty. The refinance should have been dealt with months ago however painful it was then would be a lot less painful than its going to be now. Utterly idiotic. The Board and Manager must go