Member Info for Pianista

Alas - " third that the company appears not to have taken advantage of the furlough scheme".

What makes you say that? The trading update on 2/4/20 specifically referred to "reductions in staff costs relating to 'furloughing' of certain colleagues that are directly impacted by the suspension of travel".

Alas - my best investment is DX, which fell 90% in 2016, and has not only survived but is now thriving. I'm sure Saga can do the same if it gets through the next 12 months.

Pokerchips - I think the placing costs are "only" £10m, not £25m.

The results weren't too bad, they looked worse than they were due to the goodwill write off - mere bookkeeping.

This company is strongly geared to the government finally coming to its senses, and recognising that a Saga cruise is one of the safest, controlled environments known to man. There is no need to prolong the agony....

"Don't think they did much to reject the bid, they just did not provide access to their books."

And called in the advisers, no doubt....over a period of 3 or 4 months, perhaps.

We don't know exactly, because we were kept in the dark.

For comparison, IAG are raising €2,741m, incurring costs of €69m, or 2.5%.

Saga is raising £150m, incurring costs of £10m, or 6.7%.

The capital raises vary in their detail, and there are obviously fixed costs applicable to both, which makes a direct comparison of percentages invalid, nevertheless Saga's costs do seem extortionate.

It makes you wonder exactly what is hidden within them. Costs of fighting off the rejected 33p bid perhaps?

£10m is about £42,000 per page of the 237-page prospectus (most of which is boilerplate anyway). Nice work if you can get it.

No notification from Barclays either (par for the course). Let's see what today brings...

zccax77 - it’s not a rights issue, and if the capital raise is not approved by shareholders, my understanding is that no shares will be issued to anyone, not even the underwriters.

Nothing certain about the capital raise until it is approved by shareholders on 2 October, so there is certainly time for a pre-emptive offer(s).

It would also be good if people stopped obsessing about consolidation.

ramjiali - as long as you expect the SP to stay well above 12p, in my view it would be irrational not to take up the offer, even if you don't plan to keep the shares long term, but instead sell them for a quick profit (albeit a "profit" that merely offsets the loss incurred on your original holding as a result of the SP having adjusted yesterday to the ex-entitlement price, though it took its time getting to it).

So, personally, I intend to subscribe in full - rather reluctantly though, because I'll need to find an exorbitant £13k.

If you don't have sufficient cash, then if you can sell some of your holding at well above 12p, eg 15p, I think it would also be worthwhile doing so, in order to provide the funds for your purchase of the 12p shares.

All this is assuming of course that you don't feel that there are better investment opportunities elsewhere, or that the general market won't nosedive again, etc, etc... These are factors that only the individual PI can weigh up for himself.

Anyway, good luck - we all need it!

Great job KBYK - thank you.

Toffy (and Pokerchips). My take is as follows:
You’ll get a note of your entitlement in your account by 15 Sep.
You’ll need to pay up by 30 Sep if you want them.
If the capital raise is voted down at the General Meeting, you’ll get a full refund.
If you don’t want them, that’s the end of it for you: there are no rights to sell.

Always best to confirm the details with your broker though.

My interpretation is that anyone who bought today (Thu) will be entitled to participate. The company will view the seller(s) of the shares as still entitled, because he/they held the shares on the record date, but the respective brokers will move the entitlement(s) across to the purchaser.

.....unless you participate, at an offer price yet to be announced.

...after bouncing off c15p early doors. People in the know? At 7am, we'll all be in the know!

KBYK – re questions for the AGM, I’m pretty tied up at the moment I’m afraid.

But it’s certainly an excellent set of questions that you’ve listed, though I wouldn’t ask the question about share buying by Raza, it’s a non-issue imv.

The BOD should have just said “at an appropriate discount”, instead of creating a target for a fickle market to fire at. They were clearly expecting the SP to stay up in the 20s - but to be fair the continuing delay over cruising isn't helping.

However, unless they come up with something spectacular tomorrow, the company must now be even more vulnerable to a new, or a renewed, bid. Even the rejected 33p bid, with its mysterious “conditions”, is now looking very attractive. It would at least put everyone involved out of his misery, and bring an end to this sorry saga!

zccax77 - but even so, that would only entitle them to subscribe for a fraction of the number of shares previously held.

JTD: “they have allowed the privileged institutions that will take part to pre-sell their shares knowing they are going to pay less than 15p for them (pre-booking profits)”

But if they’ve sold their shares, they won’t be entitled to the 15p shares that go with them. Or am I missing something?