RE: THINK THIS WAS THE PLAN ALL ALONG14 Dec 2020 12:50
To raise capital via an equity raises to only pay it back as dividends means the big boys got shares at a discount, thus kind of proves that this is a stealth raid. They could have easily gone to the bond market and raised the money at very low interest rates if they wanted too. But they raised it via equity and the cost that dilutes everyone
RE: THINK THIS WAS THE PLAN ALL ALONG13 Dec 2020 11:06
I don't mean to step on anyones toes here but this is simply my opinion.
The p/e and therefore the share price is based on the forward value of the stock, and in this case roughly 6x mark. By diluting the stock we essentially push the P/E to around 10x as earnings per share reduce significantly.
Now normally I would be all for equity raises for capital provided the cash raised is used to develop the business to increase earnings and justify the new forward p/e.
However, in this case majority of the cash is used to write down debt with a small portion for platform development which is the more important part that drives earnings.
Therefore, I can only see this as an equity raid, as most of the money raised is not used to benefit the earnings in the long term but to serve short term debt.
RE: It's only cost £28m in cash for UGC23 Jul 2020 19:05
It says the market value of those shares are £28m Otherwise if it was £28m of the convertibles, this would give them a 22.4% of convertibles including their 22% of held stock. Idiots I swear, can't do simple maths
RE: It's only cost £28m in cash for UGC23 Jul 2020 12:10
Kenj, if you can't do basic maths you should avoid stocks https://interfax.com/newsroom/top-stories/69356/ The right to convert at the expensive of not receiving a coupon is the holders right. If you logic was right every bond holder would have converted from day 1 if they got compensated for the coupon
RE: It's only cost £28m in cash for UGC23 Jul 2020 02:04
In case of an exercise of Conversion Rights by a Bondholder, the Guarantor has the option to (i) deliver the relevant number of Ordinary Shares, (ii) pay the Cash Alternative Amount (as defined in the Conditions) or (iii) deliver/pay a combination thereof. The Guarantor may exercise its option (the “Cash Alternative Election”) to pay the Cash Alternative Amount
It's only cost £28m in cash for UGC23 Jul 2020 01:43
Paying the convertible bonds in cash is loose change for pog. 8.25%x£125m x (31p/10.8p) = £28m To be honest it's better paying them the cash. They'll have to buy the shares back on market which is brilliant for us.
Get out whilst you can, dont be the INTU/HERTZ/WIRECARD buyer. Go with a company that doesnt pay its board members extorniate bonuses after borrowing that money from the market via a rights issue. N browns major shareholder has held for decades and owns 60% of the stock. He didnt ask for any bonuses, but pays dividends so everyone benefits