They did not pull 5p out out of thin air...
That would be after crunching lot of numbers in to their Models....using various different scenarios. I bet you they already got their consortium finance in place. MA just want to take control and run Debenhams on his terms with his team.
various savings already been outlined.
Synergies and savings with HOF would just be the start of a major turnaround.
Daniel,
Once MA has majority Holding and is in driving seat, then he deals with the lenders directly.
He might have his own consortium of financiers to simply take over the Debt and pay it off..who knows?
MA needs to protect his own massive investment building 30% stake.
Game of chess...who blinks 1st and all that.
If SPD buying in open market, then expect MA to make a Hostile Take Over approach...where he needs to take it directly to shareholders.
The letter is your first clue...
Yin Yang,
What did you expect MA was going to do when he made first 5p offer?
Did you think the debt was going to disappear somewhere in thin air after MA became CEO?
He would still have had to restructure it on best possible terms with the lenders.
Formal offer of 5p has to come with him as CEO as a pre-condition. He is reaching out to the BIG boys to revolt against this BOD.
That would be logical next step.
That RNS could come anytime.
JP Morgan increased their Holding to 5%
MA will protect his £150m investment in Debenhams...no matter what.
5p coming folks...despite shorters telling you otherwise....they running scared now.
MA along with his financial advisors and backers would have their own finance plan to be implemented after Take over. They would have crunched all the numbers before coming up with 5p Offer price.
That offer price could now be revised higher coz Debenhams secured their own finance.