Member Info for JSB1989

I thought a reasonable bid price this year would be £3.50-£4. Given that 2/3rds were willing to sell at £2.50, that seems to me to be a price where a bid might first come in from which is ridiculous given the share price was at £2.38 less than four weeks ago.

I’ve scaled back my expectations on the back of the TO results as £2.50 would be a very small win for me and not what I had hoped for.

TO money should be dropping into accounts today for UK holders. Even if they have a 15% withholding tax to pay, they can buy shares 20p cheaper than the TO - Tax.

Now the tender offer is done, there will be a number of TR-1s over the coming days. Any II’s who haven’t sold may have crossed a threshold as they will own a larger % of the company.

Anyone looking to take over Puretech could happily revise down their price. Two thirds of shareholders were happy to part at 250p. If that were a takeover price, you would assume that would be accepted by the threshold number. I personally don't understand the valuation but maybe I'm getting it wrong!!

I’m in agreement with you Dallo. Not impressed by management at all. Bizarre situation. Is there an institution who wants out and is selling down in the open market now the tender offer is done? Could those who sold in the tender want a cheaper buy in possibly? The money will be available tomorrow for those owning uk shares.

Market cap at £480 million now based on the new shares in issue.

172 million out of 271 million were put forward for tender! Only 31 million will be tendered so that equates to 18% of your holding for anyone who put all of their shares forwards.

Must be some of the major shareholders applying for it too.

They want a three year runway. They chose to allocate capital via the tender offer. If it is subscribed, there will be 31.5 million fewer shares in circulation. 238 million x 210p = £500 million market cap.

The EV sits at under £150 million at this price. Silly valuation. The management can’t seem to put this across effectively to investors.

Monday will be very interesting to see whether the tender offer is filled or not and find out if any of the big players have taken this up.

I have added more at 208p. The management should look at this at take stock on the way they have executed this so called ‘returning value to shareholders’.

Dropped nearly 10% from 238p two weeks ago. That was when it became clear that 250p on the tender offer was actually with a 15% discount. I’ve emailed the IR to share my frustrations. You are right SoundMan. They have listened to Investec and a couple of others who will be able to make off this by doing the tender offer.

Results of the offer out next Monday so let’s see what happens. This does leave a bad taste and demonstrates poor management.

Yet Puretech are in a far better position than 2021 with more cash and potentially with 18% fewer shares in circulation if the tender is fully subscribed.

It has been a shocker for UK shareholders with the tax implications. Let’s get this over with and we can hopefully move onwards and upwards in early July.

Great post Unprecedented. The SP has held well given that over 4% has been sold and hopefully they can exit their surplus position in the tender.

Another alternative is these were transferred to another II directly. Only a TR-1 next week would confirm that.

This must have been a long drip feeding of dropping the shares as 13 million can’t have been dumped in the last week. The SP would have cratered. I would assume they have done this slowly and only just now declared the TR-1. Probably a factor for a lack of upward movement in since the Karuna deal.

I wonder if this is a forced sale, are they fed up with the share performance and if they plan to sell more. Obviously the coming weeks will answer the latter.

I had no intention of tendering my shares but this tender is a shambles. Special dividend would have been a far more efficient way of returning to shareholders.

This tax is crazy. Surely you should only be taxed on your overall gain rather than the cost of the entire share.

Special dividend would be around 25p so 15% tax would be 4p approx so net 21p dividend? Is that correct if no one took the tender offer?

The tender offer has acted as a ceiling over the last three months. Two weeks and we should see a breakout. 285p is the first target and there is clear skies after that.

That’s correct. You can buy now ahead of the tender offer and request your broker to sell them for 250p. As TheSoundMan said, do it well in advance so you are on the register.

That’s a fair point TSM. The tender offer isn’t looking popular with PIs. If it isn’t oversubscribed, it spells good news for sentiment.

Gelesis was a write off. The Ozempic and Wogovy drugs came along. I wouldn’t call Gelesis, Alkali or Vor jewels for Puretech. The focus should be on the four main areas in Gallop, Seaport, Vedanta and LYT-100 now and realising more value on them.