My current take on UVEL21 Aug 2012 12:23
Right, I have took a step back and thought of things from the "market" perspective as to why we are where we currently are SP wise. I will post this here (ADVFN) and on lse.co.uk
OK the Shopping Centre has been a white elephant for a good few years now, a rock around the neck of UVEL, and it had looked quite a few times like it could drag UVEL under. Now this seems not to be the case with the sale, which Allenby has called "The announcement the market doubted would ever come!", which just shows you how much trust the market had in UVEL to sort out the elephant to it's own gain.
Now lets look at the sale details.
Deposit of HK$6.17 million - already paid and in the price - 4.5% of deal paid
Payment of HK$31 million to Mayne by September 25th 2012 - 27.6% of the full deal paid
Payment of HK$96.93 million to UVEL by 22nd of December 2012 - 100 % paid
So basically so far only 4.5% has been paid and that is more than priced in. So with 95.5% to be paid, and the market doubting the deal would ever go ahead, the SP is where it is now. The 4.5% was also a deposit, which as anyone knows can be lost if the deal fails, so it is hardly a "concrete" payment.
By the end of next month 27.6% of the deal will be paid and UVEL will have £4 million worth of debt taken off it's books. So I agree with bill that there should be a decent rerating then - for the £4m debt removed AND a much greater sense the deal will actually go ahead in full now that a good amount has been paid.
Of course there may be a spike and then a settling down between October and December but when the deal goes through in full all holders should have a very nice christmas present.
So if you believe the deal will go ahead then buy in .. if you don't then sit back and watch.
All IMHO
Regards
IHNC
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