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It's a very good question! I put in a sell order of 100k, my last remaining of 250k, on Friday @ £1.37, not expecting to be executed. However, they were all gobbled up in various sales (shown as buys), so does raise the question, who and why? And was my full exit premature?? Guess time will tell...
If it's a done deal, why are some people/institutions still buying shares in VEC? Is it just because it's quite a safe gamble in case someone does step up with a counter offer at the last minute?
Many thanks. Looks to be somewhat opportunistic lowball bid. Will probably exit.
I sold about 40% of my holding in the market for 5/6p premium & should have sold the lot !
Chances of counter offer now v slim
Oops - hadn't finished before my clumsy finger sent that last one...
Hayashi - I have sold in chunks since the announcement, but was holding a big slice for a counter offer. Doesn't seem to be coming and I have put in a sell order for the remainder today - @ £1.37 so unlikely to be executed, but it looks like anything above the offer price now will be a bonus...
I certainly concur that we appear to have been significantly short changed on the price. I have been here through SKP 18 odd years and build a quite significant holding. I can't help but feel only this years added value is in the offer price, but certainly not beyond and echo BB and John's thoughts on this...
Hayashi -
Have not posted here before but have a modest holding. Having banked the dividend I'm thinking of selling in the market.
After the RNS today can't see any counter offer coming along. Any views?
I agree MrBB. The outcome is as I suspected but doesn't mean I am happy with it.
The only consolation one can take is that, with the resources at their disposal, big Pharma could easily have made a counter offer with loose change found down the back of their corporate sofas if it really was the screaming bargain that it appears (to us) to be.
Have enjoyed the debates I have had on here. Good luck to all.
John
I appreciate that it seems to be a done deal but that does not improve my sense of either injustice or deprivation.Our value excludes most of the potential upside from Advair & none of it from our prospective Ellipta range generics & not even sure it includes the $32mill due soon from Pacira.
Pushing out expections from 2022 to second half 2022 in respect of "normalisation" of Flutifirm sales is pathetic & no mention of our fledgling CDMO business was probably an oversight
was any one aware of this buy out before the company was taken over ?
BE HAPPY
DAVE
RNS Number : 3615B
Vectura Group plc
10 June 2021
Vectura announces completion of management buy-out of Lyon oral subsidiary, Skyepharma Production SAS
Chippenham, UK - 10 June 2021: Vectura Group plc (LSE: VEC), an industry-leading specialist inhalation CDMO, today announces the successful completion of a management buy-out of its oral manufacturing subsidiary in Lyon, Skyepharma Production SAS.
In 2019, Vectura Group made the strategic decision to become a fully focussed inhalation CDMO and work with more customers and partners in this space.
After carrying out a strategic review of core activities and site footprint, the Group decided to rationalise its overall site network and prioritise the development of capabilities in the inhalation space.
Skyepharma's service offering of oral and tablet technologies was no longer deemed core to Vectura's strategic direction. A decision was taken to support the management buy-out, led by Skyepharma Managing Director David Lescuyer with a full management team in place and support from Bpifrance private equity.
Skyepharma was established in 1996 and was acquired by Vectura in 2016. Skyepharma specialises in the development, production and packaging of pharmaceutical oral products, such as controlled release tablets, supported by proprietary oral drug delivery technologies.
Will Downie CEO said, "I would like to wish David and his team in Lyon all the very best for the future. I look forward to seeing their company grow and expand its range of services as an oral technologies CDMO".
- Ends -
I've held for similar experience, but different outcome. The last take over I had was Codemaster. First offer was okay-ish, I held for three days while the SP sat at the offer price. Deciding there wasn't going to be any change, except possibly down, I sold. The very next day, another offer comes in and it shots up. (Just my usual luck!) I'm holding Vec as the SP now is around the offer anyway, so nothing lost if there isn't another offer. (Unless it's possible to submit a lower offer).
I to use Barclays have done for years ,but they don't send out RNS , but if you go to the Vectura web site you can look it up there .How ever below is a copy of the RNS
BE HAPPY
Dave .
RNS Number : 3615B
Vectura Group plc
10 June 2021
Vectura announces completion of management buy-out of Lyon oral subsidiary, Skyepharma Production SAS
Chippenham, UK - 10 June 2021: Vectura Group plc (LSE: VEC), an industry-leading specialist inhalation CDMO, today announces the successful completion of a management buy-out of its oral manufacturing subsidiary in Lyon, Skyepharma Production SAS.
In 2019, Vectura Group made the strategic decision to become a fully focussed inhalation CDMO and work with more customers and partners in this space.
After carrying out a strategic review of core activities and site footprint, the Group decided to rationalise its overall site network and prioritise the development of capabilities in the inhalation space.
Skyepharma's service offering of oral and tablet technologies was no longer deemed core to Vectura's strategic direction. A decision was taken to support the management buy-out, led by Skyepharma Managing Director David Lescuyer with a full management team in place and support from Bpifrance private equity.
Skyepharma was established in 1996 and was acquired by Vectura in 2016. Skyepharma specialises in the development, production and packaging of pharmaceutical oral products, such as controlled release tablets, supported by proprietary oral drug delivery technologies.
Will Downie CEO said, "I would like to wish David and his team in Lyon all the very best for the future. I look forward to seeing their company grow and expand its range of services as an oral technologies CDMO".
- Ends -
For more information, please contact:
Vectura Group plc
David Ginivan - VP Corporate Communications +44 (0)7471 352 720
Olivia Manser - Director, Investor Relations +44 (0)7947 758 259
Consilium Strategic Communications +44 (0)20 3709 5700
Mary-Jane Elliott / Melissa Gardiner / David Daley
About Vectura
Vectura is a leading specialist inhalation CDMO that provides innovative inhaled drug delivery solutions that enable customers to bring their medicines to patients. With differentiated proprietary technology and pharmaceutical development expertise, Vectura is one of the few companies globally with the device, formulation and development capabilities to deliver a broad range of complex inhaled therapies.
Vectura has thirteen key inhaled and eleven non-inhaled products marketed by partners with global royalty streams, and a diverse partnered portfolio of drugs in clinical development. Our partners include Hikma, Novartis, Sandoz (a division of Novartis AG), Mundipharma, Kyorin, GSK, Bayer, Chiesi, Almirall, and Tianjin KingYork.
For further information, please visit Vectura's website at www.vectura.com
Fo
The original announcement suggested that we would pour another £10mill into the Lyons Black hole over 3 years & that Lyons was unlikely to be cash flow positive for 5 years, or more.
If Lyons is loss making I am not sure why it is not simply being closed down & written off , & , if that saves £10 mill over 3 years, we would all receive an additional 1.5p or so , or around £9k extra to you , Aclearmind.
Hi Dave,
You get a lot more info than I do, my stock is looked after by Barclays Shares.
They tell me nothing.
Would be nice to know as I do own 600,000 shares
Have a good weekend lets see what next week brings
Cheers
I like many others had an E Mail today from VEC, saying they have sold the Lyon and Sky pharma business which is owned by VEC, to a management buy out .First question ,who gave permission to the board to of load this facility , and secondly how much was it sold for? and third where have those funds gone ? surly they should have announced they were in talks with this group via an RNS prior to selling this plant, plus we should have been told what products and intellectual property, were also being sold of as part of this buy out as they are part of our inventory .
Any Views or guidance with regard to this would be much appreciated ,if non, then would a letter to the take over ombudsman be appropriate, as we have not been informed of the disposal of this facility, or the price it fetched , or where the funds are going .
Be Happy
Dave
Be Happy
Dave
Today’s RNS shows Directors holdings & options .
I have no problem with Paul Fry as he has been with the company for some time & has done a decent job .Downie on the other hand is all fake & no give & will no doubt make many millions out of this deal having invested nothing at all .I am sure the deal will happen but let’s hope the IIs & HIK see what is obvious & at least demand a fairer price than 136p.19p is our share of the GSK win & was our anyway & ludicrous for Downie /Carlyle to suggest otherwise
I have interest in 2 companies subject to bids/ proposed bids at the moment. In each case the shareholders are very critical of the BODs.
I can't say that such an attitude is incorrect, I find the VEC bid disappointing having spent I think 20 years (+) with SKP/VEC.
All we can do is vote against, but be realistic that us PIs combined votes hold little sway. Getting stressed about it is more likely to affect your health than change the outcome
Definitely with you on this BB - we have certainly been screwed on the price in my view.
Thanks for your thoughts Alex, which make sense.
As a long term holder here (through SKP), the offer is pretty poor and as Dave has rightly pointed out, seriously undervalues the business, as the divi was a done deal anyway. The Board had indicated regular dividends would be paid too, and painted a glowing picture of future strong growth, which had been building for some time - I have no doubt that the £1.36 would have been the base price pretty soon. If Bidco were shorting to suppress the price, highly plausible, then we have been taken even more for a ride......
100% correct dgaser-Our Board have clearly accepted 136p per share for our company ,in which they have less paid for shares than many of us.To value our shares at 136p with 2 or 3 major onknowns in respect of our potential revenues from Advair generic,Ellipta generic & the possibility of a C-19 solution ,apart from our substantial remaining cash balance ,to be increased b an additional $32mill in the next 12 months (Pacira),is mystifying .Purchases of over 3% of our issued share capital announced late today may be a prelude to a higher bid & we will have to wait with bated breath
Hi John
You could say as I do, that prior to the take over announcement ,VEC had already cleared a special payment of 19P to it's share holders ,therefore it had nothing to do with the take over offer and should not have been added , to me Carlyle are only offering £1.36 p/s. Remember it wasn't until after the take over was announced that VEC actually withdrew that offer, Carlyle in the mean time stated in their take over document ,that any dividend made by VEC would then be repayable to Carlyle ,subsequently, VEC issued another notice saying the special payment and script had been cancelled ,and they were replacing it with a 19p Dividend instead ,that meant to offer was £1.36 + the dividend payment of 19p, making the offer £1.56 per share .But VEC shareholders were already eligible for that special payment ,as it was a reward for shareholders holding VEC share's through through several years of indecision and court hearings in 2020 ,and again after winning that court case in 2020 ,we had to wait to see if GSK would appeal ,but after GSK failed to appeal the court judgement in early 2021 , the company allocated us a 19p special payment and a script reduction of shares , therefore that had nothing to do with the takeover, as that award had all ready been offered to the share holders .
To me, the actual cost to Carlyle is £1.36 per share which in my opinion is well below our value , of course I might be wrong and non of this happened ,and if that is the case I apologise in doubting the figures ,but to me the £1.56 price is an inflated price ,and is not a true value of VEC
Be Happy
Dave
Hi Mac, This happened with Horizon Discovery and eventually found out through RNS that it was shorts expected to have to close, by the same company that made the offer. the SP had been depressed for 9 months by the shorts so the offer was kept low. I held and got 185p, (thinking there was another offer coming) when I could have sold at 220p.
This is not advice, just explaining possible underhand action that screws the small investor.
Not invested here, was looking at the yeald of 13.51%
ATB Alex
It's curious that the price is still 4p above the offer price, and has remained consistently above since the (pretty poor) offer was made 2 weeks ago. Can't still be mopping up shorts surely? So would suggest the market still expects a counter offer? Or is there another explanation?
Anyone got any thoughts?
Have the arbs arrived? Softly softly?
The Directors are greedy and a disgrace as they have done nothing to benefit shareholders and are engineering a deal which will primarily benefit them and Carlyle at our expense