The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Mentions 100p cash call
This is new info
Now how is this 100p cash structured remains to be seen...
My speculation:Rights issue with TERP of 100p which will mean that Rights issue at ~67p on 3 for 2 basis
All Jamie's scoops have been bang on
Rolls-Royce is poised to tap investors for £2.5billion at a steep discount to the current share price to solve its funding crisis, The Mail on Sunday understands.
City sources said it was considering pricing the cash call at £1 per share – 35 per cent below Friday's closing price of £1.54
This part is new
Cash call at 100p
Will be interesting to see the full structure of this £2.5billion funding
Jolly good
Portfolio valuation as of end of June sits at £7Bn
60% disc £2.8bn
Less £2.2bn debt net if cash so equity at £600M or 15.66p equivalent
So the current equity is sitting at your so called 60% discount from 30Jun valuation levels...
You recon APG and Lighthouse who hold over 40% equity in HMSO have just burned over £220Million participating in the rights issue??? And already sitting on £100's of millions of losses...
So according to you they've got it horribly wrong???
And today's buyers got it wrong???
Besides those who thought they are getting the bargain of a century loading at 200p to qualify for ri's are sitting on ~27% losses already...
Marvelous
Same will happen here
Won't be pretty
Not wishing anything bad to anyone...
Just a reality check
Look at another latest rights issue play HMSO
Price dipped to 14p today when rights issue was at 15p
This is brutal
Wait for the announcement to see what will they manage to pull out of the hat...
Good Fortunes all
Shamrock,
Thanks I am well aware
Monday 7Sep sp was 220p I mixed up two days.
Pokerchips, 36% discount to TERP where they assume that every holder will subscribe to the rights. This is is incorrect.
200p on 9Sep
Rights announced at €0.92/84p which is 58% discount. Brokers converted eur to cable with 5% fee so it worked out at 88p or 56% discount.
Running discount from TERP is nonsense
Always from the COB of the previous trading day.
Allthough they are smart writing 36% discount which doesn't look that bad on paper
Lol which planet do you live on???
Greenhammer planet must be...
If they are raising all £2.5Bn through the rights issue then 60% discount or thereabouts will be applied
Current Mcap is ~£3.1Bn
Shamrock,
Well if you pull the calculator and check what was the sp on 9Sep(200.9p close) then you will get the calcs bellow
35% disc from 200p is at 130p. It is where TERP(Theoretical ex rights price) is...
Rights issue price is €0.92/84p but brokers converted at 88p so discount was 56% or real discount was 58% at €0.92/84p
You are welcome
Look at IAG
They managed to raise at €0.92 when sp was 220p
And sp dropped under 90p already today without RI's even finished...
Similar cash raised
Reality for RR is RI's will happen at 60% discount or more
150p - 60% = 60p
Shares will trade at 60p
Current shares in issue 1.93bn ~£3.1Bn Mcap
£2.5Bn RI's
5bn shares at 50p
4.16bn shares at 60p
3.57bn shares at 70p
3.125bn shares at 80p
Total shares in issue 7bn to 5bn
So Sovereign wealth funds with £250m each will take a small stake in Rolls Royce...
Any single investor can have 15% max stake in Rolls Royce due to UK Gov holding of 1 golden share plus no takeover without UK Gov agreement.
Hola jolly
Good points... kinda
Currently HMSO is trading at £600M Mcap
NAV is £4Bn at zero disc
So currently it is valued at 85% discount to NAV
Is this enough discount for you???
Strike sales at 60% discount as you imply would still value equity at 31.7p
Double the current sp
Sniffing the bargain yet???
JackDiamonds,
Thanks for your calcs
"RBD total interest in WN is 56.325%
So each RBD share has a 0.0000000079365% share in WN.
By comparison:
UJO
Shares............................19,815,906,325
Direct Interest...............16.665%
Interest per share..........0.0000000008410
Therefore every RBD share has the equivalent of 9.44 UJO shares in WN.
With UJO at .16, RBD would be 1.51 based on the share of WN alone"
RBD Mcap ~£39M at 0.55p
UJO Mcap ~£31M at 0.16p
Something is not right here
Huge value distortion where one one is valued too low and another one valued too high???
Friday 08:00
Ha so I guess the time to load up is now lol
Hurricane Energy downgraded to Underperform from Outperform at RBC Capital RBC Capital analyst Al Stanton downgraded Hurricane Energy to Underperform from Outperform with a 1 GBp price target.
Read more at:
https://thefly.com/n.php?id=3163693