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No news since 4 of March since was temporary suspended
I would say this though - it's quite possible that the administration will result in a higher consideration for the assets. The UK operations were hugely loss making and weren't expected to pare those losses over the next few years. The financial plan was for them to be effectively subsidised by Saietta VNA revenues.
With the UK operations shut down, what you have left is the IP and Saietta VNA stake. The latter is expected to be profitable from the next financial year. So really there is not anything which a buyer will have to fund or subsidise.
Entirely depends on what price someone is willing to pay for it. As much as the tech may be valued by the company at e.g. £20m, if someone is only willing to pay £200k then that's what will happen.
The administrators are obliged to obtain the highest price for the the assets, not to obtain a sale at what the company perceives to be the market value.
There must be a return to shareholders. Unless the information provided to us in the previous two years is false.
Message from stockbroker: No indication has yet been given as to whether there is expected to be any return to shareholders as a result of administration. We will write to you again if indication from the administrator is given in respect of the likely outcome for shareholders. When IOG went into administration, the message I received simply said my shares would be cancelled.
FlyingHigher, don't worry and you're right to be pessimistic as nearly all admins end with some creditors out of pocket and of course shareholders wiped out.
So statistically there's little to no chance here.
But on paper it seems like there might be, which is why I'm cautiously optimistic, but expecting the worst.
"You should note that if the delisting goes ahead you may have difficulty selling this investment at a reasonable price and, in some circumstances, it may be impossible to sell it at any price."
This amused me, and I queried it with HL as the implied inference is that I could sell before delisting, though I know there is no chance of that. They rang the brokers to prove it!
I'm open to being wrong, I probably know less about this process than most!
No indication has yet been given as to whether there is expected to be any return to shareholders as a result of the administration. We will write to you again if indication from the administrator is given in respect of the likely outcome for shareholders.
You should note that if the delisting goes ahead you may have difficulty selling this investment at a reasonable price and, in some circumstances, it may be impossible to sell it at any price.
OldFortyNiner this is the communication I got from my broker to reassure you.
‘We will notify you on receipt of any further information from the Company or if any distributions are made by the Administrators.‘
IMHO DYOR
Flying high lol with that scenario that’s a corker of a fib. As shareholders any surplus will be distributed amongst the remaining shareholders! End of. And Maxi is correct they could come out of administration it’s not game over. Wait, watch and see. IMHO DYOR
Are you being serious? You think the shareholders aren't entitled to the surplus? Who is entitled to it then? You realise companies can enter and then leave administration?
The administrators have no obligation to shareholders even after debts have been settled. It's not a takeover process.
The shares are assumed worthless.
Even if there is £1bn left over shareholders have zero entitlement to such money.
It's basically handing over ownership of the company from shareholders to the administrators to solve the credit issues.
I've received a message from HL this morning that the shares will be delisted on 4 April (caveat: unless anything happens in the meantime. I managed to winkle out of them that they will tell me if anything does happen?!). Failing that the shares then sit in my account until such point that the company is finally wound up and the shares become of nil value. HL will then just remove them from my account and at that point I can claim that as a tax loss against anything I might make elsewhere in future. Great.
Basically FlyingHigher, you're assuming there's only one potential buyer. If there is, then as you say they will want to pay as little as possible.
But if there are two or more buyers, they will pay as much as they're willing to pay.
Also, we don't know what the terms of the JV agreements are. It's common in JV agreements for the minority partner to have a put option, in other words forcing the majority partner to buy its shares at fair market value. If the minority partner is insolvent this may be at a discount, typically 15-25%.
If such a mechanism exist in Saietta VNA then Saietta Plc will be entitled to fair market value or thereabouts for its 49% stake. What is the fair market value of that stake? If the forecasts are reliable and Saietta VNA will have £40m EBITDA in a few years then it's not going to be cheap.
We simply don't know.
FlyingHigher, the administrators have to find the highest bidder for the assets. They normally do this through an auction process.
If the highest bid is £10m and the outstanding debts are £5m the shareholders get a return. It's really not that complicated.
Maxi I don't think you're giving due consideration to the negotiating position of SED.
All value is irrelevant to shareholders because SED invoked administrators.
Administrators are interested in delisting a company and making sure creditors are paid in full.
They have zero interest in shareholders, who took their own risk.
So I repeat this point:
You have a buyer that meets the demands of the administrator to pay the creditors and clear any debts. On what planet would the buyer then put in a bid to take over the company and pay shareholders when they don't have to?
The £100m diamond scenario you gave doesn't work either in my opinion. The answer is the diamond would be sold off on the cheap for whatever is required to clear the debts. That's the process.
I've never known an administration process to offer a payout to shareholders.
You can alway leave !! Bye bye
Some here seem to be perturbed by their own precipitous behaviour. Understandable, I suppose...
Get over it and move on pmsl , coming from some bell end that thinks he’s the saviour or aim . Sad tw at
I sold a few weeks ago. But that does not change the fact that I lost money because of the liar Tony Gott. I will be voicing that. Why are you here?
Neil, in the event you're wrong, I'd just like to thank you in advance for your great efforts to help collapse the share price and allow the multi-bag buying opportunity. And try not to cry by the way.
Https://www.lse.co.uk/rns/appointment-of-administrator-5jed162cmed0clc.html
Its over and share will disappear in 4 weeks
Get over it and move on
You were all warned many many times last week
Thanks Tony Gott. An expensive lesson indeed, but you have taught me a valuable lesson that nothing, NOTHING a company director tells us about it's position or prospects can be trusted at all.
You are a liar, just as so many others have been.
The only thing that can be trusted is profit, and I would have my doubts about that now.
Bloomy, as much as NicName may well be right, if he's wrong then he doesn't need to be wrong by much to have missed a massive multibag opportunity. Probably shoiting himself at the thought.