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Well said Rox. Another way to look at the offer from the PE firms - From memory it was £270m (forget the old money share price). If they came in and offered exactly the same £270m (and shares in issue are now approx. 140m) it would equate to a current price of £1.92 a share. Even if they offered £270m + the new cash of £140m = £410m = £2.92 a share. Please be careful with your "simple" £4.95. Back of a fag packet works for me too.
Thanks Rox for a very useful bit of work. Everyone will have their own variations so please don't take some of the comments to heart! I always find using the Market Cap as the easiest way of getting my head around this placing and consolidation. The market is aware that there was £140 raised so using the logic in some of the responses to your post and using current M/Cap (11.25am 26/10) of approx. £210m, the value of the old business would be 210m-140m = £70m. And this compares rather poorly with the £270m offered (albeit highly conditional etc etc)
It's now not possible to buy this stock through my HSBC Invest Direct account. They have put a block on until after the consolidation (hopefully lifted on Monday). HSBC said they could only sell. Maybe it's the same with other retail brokers and this could be a reason for the weakness in the share price. DYOR. Good luck all.
Agree with you Bat. As stated on the other board by me "When is a 33p offer not a 33p offer? The offer was heavily conditional. I know we are all tempted to be cynical (about the BoD looking after their jobs) but what if the offer was "we'll pay 33p to take this over if the Bank's write off half their debt". I suspect that we will never find out the true reasons but please look beyond the BoD protecting their jobs."
Sorry that was prelims not full year. Full article on FCA website
https://www.fca.org.uk/news/statements/delaying-annual-company-accounts-coronavirus