Member Info for Rocket79

News Monday?

Full text...... It would appear that the board of Greenko (GKO: 55p), the Indian developer, owner and operator of clean energy projects, have been listening to their shareholders. They have now entered into discussions with two major investors to work out a compromise deal to prevent a highly dilutive share issue on the conversion (into ordinary shares) of the minority interests in Greenko Mauritius held by the Government of Singapore (GIC) (whose investment has a value of £140m), and Global Environment Emerging Markets (investment has a value of £75m). This is clearly good news as both GIC and Global Environment Emerging Markets (GEF) have the right to convert their investments (GIC owns 17.38 per cent of Greenko Mauritius and GEF owns 14.09 per cent) into Greenko’s ordinary shares from the start of July, so this issue needs resolving as soon as possible. I discussed this important point when I last updated my view when the price was bombed out at 44p (‘Catalysts for share price moves’, 4 Jun 2015). The latest news initially sparked a 50 per cent plus rally in Greenko’s share price to a high of 68p yesterday morning, albeit it only returned the price back to the 70p price level they were trading at seven weeks ago (‘Break-out looms for mobile wonder’, 12 May 2015) before some profit taking set in yesterday afternoon. My advice is to hold firm and await news on details of the compromise deal the company is trying to work out with these two major investors as there could be more significant share price upside in the event of an amicable resolution. That's because after factoring in a December 2015 year-end net debt figure of around $920m (£590m), an increased issued share capital of 329m shares - assuming that GEF and GIC accept conversion terms around 100p a share as I discussed in my article in May - then Greenko's enterprise value of $1.5bn (based on a share price of 100p) would still be only 8.5 times fiscal 2016 operating profit estimates and 7 times likely cash profits. Of course a conversion price of 100p a share is well above Greenko’s current share price, but still represents a chunky discount on the 180p level the shares were priced at last summer, and more importantly the share price at the time when they made their investments in the first place. Moreover, there is no point at all for the two major shareholders to undermine the ability of Greenko's board to progress with its expansion plans as GIC and GEF are still only minority shareholders in Greenko Mauritius, owning less than a third of that subsidiary between them. Hold.

ST has an article out today this is his concluding bit:- My advice is to hold firm and await news on details of the compromise deal the company is trying to work out with these two major investors as there could be more significant share price upside in the event of an amicable resolution. That's because after factoring in a December 2015 year-end net debt figure of around $920m (£590m), an increased issued share capital of 329m shares - assuming that GEF and GIC accept conversion terms around 100p a share as I discussed in my article in May - then Greenko's enterprise value of $1.5bn (based on a share price of 100p) would still be only 8.5 times fiscal 2016 operating profit estimates and 7 times likely cash profits. Of course a conversion price of 100p a share is well above Greenko’s current share price, but still represents a chunky discount on the 180p level the shares were priced at last summer, and more importantly the share price at the time when they made their investments in the first place. Moreover, there is no point at all for the two major shareholders to undermine the ability of Greenko's board to progress with its expansion plans as GIC and GEF are still only minority shareholders in Greenko Mauritius, owning less than a third of that subsidiary between them. Hold.

Yes well IMO this should be trading above 70p now. Patience will be rewarded on this one good luck.

Tree shake over looking at stabilising now. This should gradually climb towards 70p before news as the market makers now have their shares IMO

Tree shake don't let them trick you into selling up. This should be trading over 70p easily before any news.Buy the dips this is only going higher. Good luck

Plenty of buying this morning as news sinks in. This could easily be back over £1 in next few trading sessions with the right news. This has been oversold.

Investec currently have a BUY rec on Greenko and £1.50 target

Great day here. I expect more rises again over next few trading sessions as news is imminent.

This was 182p in the last year. Since then the business has operationally performed exceedingly well. Anyone buying in at this level is getting a bargain IMO

Next news will see this over £1. Strong Buy

80p short term target on chart. Seller now cleared. Good luck

Really suprised IC have also got this wrong. Seems this dilution issue is over done imo. GEF are not going to convert shares at this price and GIC would not also imo. Theres a legacy fund that has been selling but they are almost done now I beleive. Could see a strong rebound imo

Parkside your wrong on GEF. Maximium shares that can be issued is 29.99 %. Its all there in circular. Also conversion dates were july 2014 -June 2017 so they could have already converted into shares which they have not. Below is from circular. . Depending on the prevailing market price of the Ordinary Shares, the exercise by the Preference Shareholders of their rights under the Put Option may result in their receiving a value exceeding 29.99 per cent. of the Enlarged Issued Share Capital. In these circumstances the Company will issue Ordinary Shares equal to 29.99 per cent. of the Enlarged Issued Share Capital at the date of exercise and pay the balance in cash.

Some heavy weight institutions have significant holdings. Principal ShareholdersNo. of issued shares% Shareholding1ACMK Enterprise Limited (1)26,743,14617.17%2M&G Investments22,723,93814.59%3Aloe Private Equity (2)16,814,98010.80%4Capital Research Global Investors12,028,1557.72%5Legal & General Investment Management11,487,8557.38%6Henderson Global Investors9,834,7536.31%7F&C Asset Management6,540,3234.20%8Jupiter Asset Management4,902,6703.15%9NFU Mutual4,828,0003.10%10Impax Asset Management4,509,0682.89%11BlackRock Investment Management (UK)3,552,2002.28%

Excellent thanks could see a sharp bounce if they are good which i believe they will be. Good luck

Where did you get that info thanks.

What email address did you contact greenko on? If that update come we will rerate. Cheers

Need slightly more volume and breakout will be confirmed. Can't believe the sp is still this low. Strong bounce as heavily oversold IMO.

Looking from a technical analysis this is oversold and will rise significantly next week.