Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Cheers rob, but there has to be someone who has been invested longer than me? 25 years?
There is Dan, I have an uncle who brought these in the early 80’s I think when they were a subsidiary of Racal who were an electronics company. Racal I think used to provide comms for the Police, fire etc before out friends across La Manche snapped it up.
My uncle still has his shares & he often tells me he brought them for 1p, yes one penny. I don’t know if that bit is true but it won’t be far off & he has thousands of them.
There’s always someone better off than you! Or is that worse off, anyway positive thoughts today team.
Bought my 1st as an employee in 1996
been regretting it ever since?
I did work out recently, if you bought on IPO day in 1995 and held, you made compound total returns of 4.5% pa. This includes divs. Better than a kick in the teeth as my dad would say.
So, I’m looking at vod. UAE bought 9% of the company a few months back at I believe £1.30 a share and cevian bought from around £1.10 to around £1.30 ?
There’s also a bidding war over towers business going on that jumped the sp when leaked
So, I guess my question is, is this looking like an opportunity that bigger players had knowledge or influence on how all this would / could play out ?
On my watch list for now - as follow the money is an interesting thought
'opportunity that bigger players had knowledge or influence on how all this would / could play out ?'
My thought is UAE want the brand, and that could be the partner markets model. Cevian want a simpler operating model, so that means disposals . Disposal of all VODs share of vantage or only part will be telling imo
Yes getting £13 or £14 billion is big money
But UAE bought into this at £1.30 to make money and I’m guessing it wasn’t just a spur of the moment investment but one that took a lot of due diligence
I was looking at vod US today to judge my potential investment and it finished positive and then up further 1.2% after hours
Of all the disposals VOD could do, selling the 80% left of towers is the worst. Once gone it does not absolve them of any responsibility really as they swap managing the separate unit for managing and paying to rent space on a tower network.
If Towers is the item that goes, it will be an enormous red flag of what’s really going on internally.
'Of all the disposals VOD could do, selling the 80% left of towers is the worst.'
Interesting. They would avoid the capex and return on investment risk and pay a higher access price for own use. So how would the terminal value of cost savings from disposal compare with, say, the sale of Italy and avoiding spectrum costs etc.
I agree VOD got lots of options but a deal in the hand is worth 2 in the bush ..
"Once gone it does not absolve them of any responsibility really as they swap managing the separate unit for managing and paying to rent space on a tower network.
If Towers is the item that goes, it will be an enormous red flag of what’s really going on internally."
That's difficult to say. It's likely a full sale will create a lease liability on the Vodafone accounts, due to rental costs, but it would also inject a significant amount of cash back into the company, and the Tower owner will then be responsible for maintaining the towers, access roads, wayleave's, etc. I would think Vodafone will become an anchor tenant and will negotiate a good forward rental rate at the point of selling the infrastructure. There'll be a higher operational cost for use of the towers, but VOD could potentially save more by reducing debt with the cash from the sale.
My guess is much will depend on how much private equity will offer for a stake. Maybe VOD will decide how much to sell dependent on how much private equity are willing to pay. If a bidding war ensues, and the offer price is something VOD can't resist, maybe it'll be in VOD's interest to sell it off completely. Not sure if there'd be any red flags under those circumstances.
If the offer for VODs [83%] share of Vantage is €10Bn+, that would be c31p cash per share. Thats something to look forward to despite the gloom out there
vodger. If the offer is 31p per share, but the share of vantage is worth more,(for example) 41p per share, then the vod sp should fall by 10p. Do you know what it is worth? Don't just sell for the sake of it, unless you know the true worth. I don't know, do you??? But I like your non doom & gloom suggestion! Talking of doom & gloom, good luck to Mikey. He can't help it you know?!
Dan, I think vantage was originally valued/ ipo c€12bn, hence using €10bn as a strawman for vod share . Of course only the auction will establish a number to accept or reject. As to what's in the SP currently,..well that's not the sum of the parts otherwise we would be back up at 180 or 200 imho