Member Info for Naoma

Hi everyone, something what I don‘t get here is where are the insider buys? Seriously, if I would be the CEO, CFO or another insider and generating huge amount of cash and plan a divi for next year, I would buy this stock with every penny I have. But nothing happens here…
Do we miss something or what do you guys think. It just doesn’t add up for me…

You asked what is fishy about the transaction and there is only the „admin“ info missing. And I gave the answer why the „admin“ for some of shareholders is relevant. Not illegal, but question of good CG. Anyway, you get my point.

Lets go forward and see with what they’re coming up.

Still believe of a simple pro rata offer, but can’t be sure because of the missing „admin“. If not, it would cost me 25-30% of my return. Kind of a costly bet, thus I sold. If I would hold this position in the tax free structure, no rush to sell at all. Thats also why I mentioned that I will buy in around 8 again and if so, with the more tax efficient vehicle. So no risk at all then, only they would screw it up with the remaining funds.

Well, the „admin“ can make a big difference. If I would know the „admin“ I probably wouldn’t be forced to sell my position in the open market.

I thought exactly the same, this smells very fishy. But at least for the remaining shareholders not a bad sign…

Clued - yes sure, that‘s absolutely possible. But they mentioned a tender offer instead of (dividend) distribution. And a dividend distribution would be very tax inefficient. E.g. in my country capital gains are tax free while dividends will be taxed as income.

That said, all speculation. I just said that instead of very complicated tender/distribution constructions discussed here before in my past experience as a private investor and also involved in a similar situation in the role of major shareholder of a listed company I see no reason why not a classic tender offer with proration takes place. Thus offer around NAV, proration, cancellation of tendered shares and then going forward (whatever this will be; RTO or final distribution).

But we will see. Because of this uncertainty I sold my position, would be a disaster for me if they make any kind of dividend distribution but I actually don’t assume so….but assuming can cost a lot of taxes (happened before).

SB - exactly. I saw similar procedures mainly in the US but that sounds for me the logic way how to deal with that.
Never saw a tender offer before where a company sets a price way below market price especially if they want return cash to shareholders. Who would tender? - I guess nobody and I also don’t know how it would be possible if the goal would be that the shareholders keep their shares (as suggested by others here) without get into tax conflicts. Does not make a lot of sense for me.
Disclaimer: I sold my whole position in the meantime but will buy again if the price gets near 8 again.

Silverblade - couldn‘t it be that they will follow just a regular tender offer to an almost NAV price but will implement proration? IMO this would be the simplest and most common way to return capital to shareholders.

Does one of you has an idea how they probably will distribute the excess cash? For us non-UK holders it is quite relevant as with an expected income taxation of about 25-29% for me in Switzerland I would need a total distribution of at least 10.5 to have a better return than just selling now tax free for 7.50.

I'm following your posts for some week and something I don't understand, instead of writing our fingers wound why not team up and force management to do something. I assume all of us have between 200k - 2m shares. So all combined can have an impact. Otherwise nothing will happen here.