Member Info for GruffJ

Can somebody explain to me why when you have this activity going through at 22p with Seafox rapidly approaching the 30% mandatory threshold people are selling with a 14p handle ? I must be missing something......

The "material change in circumstances" clause is a key one I think. If GMS sign the debt restructure deal this month this would be a material change in circumstances in my opinion. Hence, open the door back up for Seafox. So I expect them to increase their position up to the 30% threshold by then.......

Morning Ron,

I've been in this one for a long time as a turnaround / buyout story, having been buying all the way down from 14p (I now hold a lot more than initially planned!). There's a lot of moving parts to this one, with a potential bid from Seafox who now look to be restricted from increasing their 10p offer for a couple more months. Anyway, the BOD and management team have had an overhaul over the the last 12 months and now look to have a grip on where the company is heading. Order book and utilisation rates are strong. However, the major issue is the company's debt structure. They have agreed in principle with a syndicate of banks, but this isn't signed and we also don't have any clarity on the structure of the capital raise that was announced a couple of months back. With this hanging over the stock the recent price moves have been bid led and todays move anticipating something off the back for a trade at 22p (that now looks to have been cancelled, but is was off book).

As for your actual question, on price target. For me I would cut my position in 1/2 at 20p to bank some profits and let the rest ride a bit longer, either as a bid or longer term turnaround play. I do feel the current management team have a much better hold on the company and controlling costs etc.

Hope that helps a bit. (I'm obviously a stock holder though and the share price has been driven down significantly, so I may be looking through tinted glasses!)

Off book trade....

It can’t be seafox because of their stupid 10p no increase statement, they will have another 2 months to run on that one, unless I’m missing something but I did check with the takeover panel to confirm.....there are a few other significant holders already, RNS tomorrow will clear it all up!

Would you sell at 22p? Now that is a harder question to answer than 10p.....

Surely another counterparty with a bid announcement coming, that's a massive premium to pay otherwise.

22m shares at 22p....cant wait for the RNS on that one.

Seafox continue to buy at 10p (RNS with 28th May dealing)......this is far from over and people still sell sub this level !

On the 26th Seafox purchased 315k of shares at 10p, if they decided they were no longer interested in pursuing this takeover why do this!!! Why oh why sell in the 8s?!! Doh

Seafox are still buy stock at 10p and below, so this isn’t over, they just need to reset the clock in order to increase the bid later down the line. Their 10p an no increase bluff has backfired due to the level of shareholder support for the BOD.

Correct me if I’m wrong but I don’t think Seafox have actually made a formal offer for the company, the language in the statements is along the lines of “should seafox make an offer” and the “possible offer”, the reason I mention this is that the takeover codes refer to the date of formal offer being made. With regards to “no increase” again the language is vague as it’s says, “amounts” to a no increase statement. So it’s unclear to me as to whether Seafox have drawn a line at 10p regulatory wise. If they have then it’s 3 months from the offer point until they can increase.

Unfortunately we are now outside of the 12 month window for the take over max price paid to apply and having issued the no increase they are limited as to what that can do other than continue to buy in the open market at 10p or less. Whilst the pricing point stays here Seafox might as well continue to employ this strategy. The solution is for smaller holders to stop selling at these levels!!

Was off book via a market maker, interesting to see who was on the other side, there's been limited liquidity to build that position....

Seafox aren't finished yet......

I can't see why the board would spend the last year doing all the hard work of reorganising the firm, negotiating with the banking syndicate, lining up a capital raise, to then support a buyout at these levels. IMO this is Seafox anchoring (excuse the pun) for a more sensible pricing point down the line. (I hope!)

Was it 18p they previously offered?

Finally some positive steps. Not a market to be looking to raise shareholder capital at decent level though.......what do people think? At the levels are are currently at this can only be positive in the long run surely? Cutching at straws but if GMS was going under the banks would have pulled the plug by now??? Will be interesting to see the capital raise details and what if any underwriting it contains.....

Will be interesting to see if we get the standard copy and paste today or something with some more context given the last month globally and oil markets.

Boooooooooooo another month of drip drip drip

......or maybe not then, unless it’s late, or an actual statement about banking (please)