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If it was a misprint, they'd have to issue a statement making the correction. I assume it was the correct level of warrants and lignumvitae's question needs answering.
Thanks MrUnderhill for the clarification
I thought the offer was 4pence a share.
However, I don't see the SP going higher because of the offer because it is a share for share deal. The real value is one share of SKIN and they could be £10 or 0.1 pence, it is still the same deal.
I'm not aware of a consolidation at MWG. I thought it just changed now that the SKIN consolidation has gone ahead from 1:1 to 1;10 shares.
Not that it makes any difference, it is a paper exercise I believe.
When does the takeover of MWG complete? I'm surprised no other company has come forward to bid for MWG.
Hi Retireby40, I like your name. Is it an aspiration or an achievement? Or is that too personal a question?
Surely it is right to have some explanation of the membrane division's future as part of this deal? Although I support the deal generally, I might vote by 0.3% against the deal if the membrane division is ignored. I don't see why a subsequent sale (probably raising the current market value of MWG) should be shared with existing SKIN shareholders - although I'm also an investor in SKIN.
Hi Finance Muser,
Perhaps the fairest way for the MWG board to deal with this is to negotiate with the SKIN board that if the membrane division is sold in the next 2-3 years, the proceeds of that sale will go to original MWG shareholders, or perhaps a portion above a certain amount.
However, I don't want it to be sold. Unless I am missing a trick here, I think this division will be worth a lot in the future with the need for desalination plants growing with continued population growth. I don't think it is a matter of being too small - partnering is the answer as someone else mentions - and I don't think it should be treated as the poor relation to monitoring. I would also like an explanation of what happened to Gibraltar. GB said in one message (forgive the paraphrasing) it was the past and therefore not of concern. I do not agree with that attitude, although am very grateful that GB moved when he did and shall also be putting my shares behind the merger.
But I would very much like an honest appraisal of what happened to the Gibraltar contract.
I wonder if anyone else is going to come out and bid for MWG? Or will they wait until the merger is complete and then bid for SKIN, saving them the hassle of making all the synergy related changes/ savings?
Muggins, I agree. How much of the old management team will go forward and how much does this represent the savings they will make on merger?
Correct me if I missed it, but most mergers/ takeovers talk about making overhead savings, as well as all the synergies etc. I didn't see that with this proposal. Presumably there will be head office savings, helping the combined companies get to profits all the earlier. You don't need two head offices, two chief executives, two chairmen, two annual reports etc.
The publicity around this might entice an offer from another company, either for MWG, SKIN or both.
It doesn't surely work like that - because there are new shares issued in exchange for the shares in MWG, hence valuation stays around 4 pence a share but market value increases when you multiply by the increased number of shares.
I think the share price will rise substantially in the short term but the real gains will be someone else - a large corporation - buying out SKIN/MWG. This may even happen before the merger goes ahead, someone being opportunistic before the share price rises. The publicity surrounding this merger will bring it to others' attention. There may be a rival bid all cash at say 6-7 pence a share - I think most shareholders would take a 14 fold increase over six or nine months!
With regard to ongoing share price without an immediate second bid, I can see the new price starting around 4 pence and this becoming 40 pence through the share consolidation. I can see this rising to £1 easily with some good news. The stock market does not work in even spurts - it tends to go rampant and then enter a correction. But remember £1 after consolidation is 10 pence a share today.
I think it is irrelevant, both from a long term holding point of view and as method of valuing the takeover price because it is a share for **************, one for one, that means whatever the price of SKIN on the day it goes through is the correct valuation - but if you are holding the shares for the long term, it does not mean anything anyway - not that I can think of.
I agree it is crazy not to accept it.
Except, might this prompt someone else to make a cash bid?
I think these last few days of share price drop is more the stock market fluctuation after a rise from less than a penny a few months ago. I think there are valid points about Simon Humphrey remaining in control of the company that need to be answered and have not been answered so far. I suspect if he refuses to push himself forward at this point, he will face formal opposition at the next AGM. I think his lack of judgement is leading him to silence now and it will impact him badly if he does not start to talk a bit about his strategy.
I also think MWG has great potential, both divisions, and am always tempted to buy more when the share price dips. As well as the monitoring division's prospects, there is the membrane division which, given the scarcity of clean water and the relentless increase in world population, is going to be very significant in the long term. I would like to understand clearly what happened with the Gibraltar project, why it died and, possibly, how it could be resurrected.
Buying and holding for the long term is exactly what I am doing. As soon as MWG tips into profit, I imagine it will increase the share price a whole level above the current price, but on the back of real substance.
A good buying opportunity then?
What is the significance of 6th?
Retireby40,
I agree entirely with you. I just wonder why the old executives don't speak out, just silence from Simon Humphrey. I think he'd find a lot more tolerance if he was open to some discussion. We've trebled our shares in MWG in the last few months - I bought originally because of the sentiment you express - water is going to be a critical commodity.
What harm does asking these questions pose? I certainly don't understand the purpose of a share chat if it is not to ask questions such as these. I don't understand why you object so strongly. You don't have to read them. Am I just missing a trick here altogether?