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Close around 100p my guess
For those who aren't clear of the reasons for delisting, look at the last fund raise - the company want to raise money on a valuation far in excess of the current public price - as the price has gone down, this will have become harder to justify - with no share price to act as background noise, it will be easier to do the fund raising they want. That's why (amongst other reasons) startup companys are not usually public listed companies.
The latest RNS gave me a headache and as a shareholder in an ISA I’m sc-re-w ed.
For the record, I'll still be 30% down with a floor price of 150p.
The MBF looks fair enough to possibly turn an unpleasant situation into a better one. It provides an opportunity to watch and wait because you still have an opportunity to sell while the MBF is active, as long as the SP re-rates beyond the set floor price you should still have buyers to sell to but as they say - NO guaranties!!
My understanding is funding will be provided shortly after going private so it's watch and wait to see if a rerate happens during the MBF period, if it doesn't I'll probably just have to hang on in there in the hope of a re-list in a few years. Could be the best or worst decision I've ever made, I don't need the money yet so Hey-Ho!
GLA
My read of it - IF you want to sell, you have a very reasonable chance of getting £1.50. IF you don't, you have a VERY good chance of getting in at a LOW level on what could be a very big company - obviously risk involved, but there are some big players putting in big money. If you could have bought Tesla for the current price would you not have done it. I don't say we will be that sort of company, BUT it is possible! I would HOPE we might see a degree of re-rating on the share price as we move closer to the delist as those who want to hold for 2-3 years will NOT be able to buy at this sort of level again - imho.
Thanks Steamy, and everyone else for their input. A rum do. Hard to know the best course of action. I would take a hit of around £20k if I sold now. And there is huge risk by holding on. This is where I wish I was more of a pessimist, and just sold up. But unfortunately I seem to be drawn to risk, so might end up hanging in there .
HI All,
I hold in SIPP and ISA. I am thinking of all the options.
Mostly I would take the money and run. But, if I plan to sell the ones in ISA, and hold ones in SIPP how does it work?
How can I hold the ones in SIPP if its delisted?
Thanks G
Mike - Nothing we can do at the moment. If the tender offer comes before the de-list we can take it. It's not guaranteed, but they have to say that. Even after de-list, the way I read it we should still be able to sell and don't seem to be being left stranded with shares we don't know what to do with. It will just require a bit more effort to sell.
It looks like if people want to hold on a few years, the aim to re-list in a different market at a higher price.
Richard Shearer says , "Shareholders should be aware that whilst it is the intention to set the price at 150p per Ordinary Share, there is no guarantee that there will be a buyer at this price."
Means, if you try to sell, we will give you a lower price, and if you hold, go only knows what and when you will get your money out... I have been holding for long with average of around 100p, should have got out, when I was in huge profit, all the Aim company directors/ceo s are real t hu gs ... dont trust any.. they play with your dream, and royally s cre w you
Just totally disappointed.
Steamy - do we have to do anything ?
I want to exit at £1.50 but not sure if that is possible now, before they leave AIM
To be fair it reads quite well and seems fair. Personally, I would sell my shares immediately at circa £1.50 if the chance arrises due to personal circumstance, but I know others have longer term plans and may wish to hang on to them.
We've said before that private investors don't usually get a chance to get in at this stage - this is a start up so could fail completely, but it could also be the next Tesla/Apple/Insert other company here! I'm hopeful that the offer will actually happen, and I think it is just possible that the price might exceed the offer price as PI's take the last chance to buy in. News one way or the other will hopefully be forthcoming this week.
Thanks Occam. I get the company benefits of not being listed but suspect that they will be more to do with corporate flexibility than reporting obligations. However you are right on this. I'm still interested in what everyone thinks about being essentially a small private investor in private companies.
In many ways it will still not be a small company if it needs $100M just to get to proof of concept. Anyone investing that much is going to want some certainty on future benefits and rewards. So does that suggest that my small parallel investment is still both secure and potentially profitable?
Allowing "emerging markets to participate on a level playing field" has always been at the forefront of TNT's objectives.
When I read about recent collaborations between serious players that address part of these problems I cannot fail to think TNT have lost a lot of ground and may even have missed the boat.
Still holding but my optimism is waning.
Hope not but hey ho.
GLA
AndyH81 - "I could be wrong there but the fact you can buy as many as you want for under £1 tells you that."
It wouldn't be under £1 for long at the quantity required for 29.9% of the company. In fact the average would probably be much higher, due to the quantity of available shares.
RE "What am I missing here". Well, a question... where are they getting £100m from?
The company seems to have been constructed on a business plan of "fake it till you make it" and unfortunately they have not made it in time.
The 150p "possible" offer is just a weird charade, nobody will actually be getting that money. I could be wrong there but the fact you can buy as many as you want for under £1 tells you that. The market is not always spot on but I have never known it to be this wrong.
Thanks Nelson. As you say the trickiest part of this for me is the lack of an exit route. However, anyone prepared to buy stock at £1.50 despite knowing that £100M is needed just to get to 'proof of concept' must surely feel that there is huge potential here
I accept that capital may be tied up for a good while but what am I missing here?
Fwiw, example of recent bid for another company timeline for a company called Fire Angel (FA.)
LRB must be really close now (3 weeks so far since Tender Offer RNS) and looking at the above 4 weeks delivery so next week for new?
Date Source Headline
24th Nov 2023 7:00 am RNS Acceptance Level Announcement
2nd Nov 2023 6:10 pm RNS POSTING OF OFFER DOCUMENT
27th Oct 2023 7:00 am RNS Rule 2.7 Announcement
You may or may not know, that LRB 35 only own around 7% of TNT shares and there is less than 30% free float available in the market so the chances of you being able to take up the tender offer must be high. Hope this helps.
No advice intended, door.
Obnc
Main risk of this share for me has always been dilution. Moreso in a private company as you dont have that obvious route to market to sell to bail out.
I dithered about buying here as it was open that the new funding was coming and that would dilute - but the assets /prospects wood me.
My main private company concern is I dont have an exit and in the meantime they can reduce my holding by having funding rounds to which I am not invited - but to be fair I was worried about this pre privatisation.
Personally I will sell but I am holding out to see if I can get a better price or something else happens - 150p and I would take it gladly at present - but others target is clearly lower and they are clearing off sub £1 out of impatience and uncertainty of any offer.
The benefits to the management of the company are that they can save money on the legal requirements and obligations of a public listing, and devote their attention and other resources to building the business. They have said it will take $100 mill in funding and 5 years to get proof of concept system running. The disadvantage of an individual holding a few shares is that there is no obligation by the management to say how things are going, and no market for the individual to find a buyer at a fair price. A shareholder becomes a private investor in the company. Everyone makes their own decision, but maybe selling now creates value for an individual to harvest the loss and reduce a gain taken on another position that worked out.
Given the serious prospect of being left holding 'unlisted shares' It would be useful to gather general views on what people see as the benefits / disbenefits of this
/discuss
It is odd I grant you.
The monies involved in getting to 29.9% are not significant so unless the potential funder of the Tender Offer has got cold feet it's difficult to see it not going through.
More likely is the case that the Takeover Panel are moving at a snails pace in giving the green light and/or the finalisation of necessary documentation required to proceed is taking some time to complete.
Happy to proven otherwise of course but this is out of TNT's hands so it's highly unlikely the BoD at TNT are causing any hold ups.
The real unkown for me remains the CLIN situation and that might be unresolved?
If they were loading up themselves they would have to declare the purchases in an RNS as they are still under the offer rules.
There is risk this may not happen hence the reduced price. If you are certain that the offer will come then you should be buying more, remotgage your house, tell your friends to purchase, buy buy buy....
The fact this hasn't happened tells me that it's not yet a done deal and there is still some significant uncertainty.