Member Info for ryanf

This is why the deal is a no brainer for Moulding and Co.

He gets to run a private company again.

Probably an easier route to selling Beauty and Nutrition.

He'll gobble up a load of cheap Ingenuity shares from people who don't want to stick with Ingenuity.

There's no longer any funding requirements as that has been secured by the fund raise.

I bet they've got a load of Ingenuity clients lined up.

He'll relist in a few years time on NYSE and become even more wealthy.

From here, you may be more quickly rewarded by lumping with RemainCo, but over the long term, you'll be much much more wealthy if you stay with Ingenuity, and Moulding knows this. But he's giving you the option.

I thought it was only possible to either:

Keep your Ingenuity shares

Transfer your Ingenuity shares to RemainCo shares

What if everyone decided to transfer all their RemainCo shares to Ingenuity? You'd run out of shares to give due to low valuation compared to RemainCo.

The RNS gives you two options only.

Jockbob, gut feel is we'll be much better off sticking with Ingenuity, especially when they look to relist on NYSE in 5 years time...

Relying on re-rating of RemainCo to fair value based on reasonable EBITDA multiples with minimal capex spend. Shame about debt but reduced leverage from transferring lease liabilities to Ingenuity should make refinancing the debt cheaper. Maybe that's why they've kept the debt in the group...

Reading between the lines, I think the board are suggesting:

We've done what shareholders want in demerging Ingenuity, but we've done it on our own terms (I.e. to the benefit of shareholders who remain in both RemainCo and IngenuityCo).

I suppose it makes sense, we get the flexibility of transferring shares from IngenuityCo to RemainCo, but there's a price for that value and flexibility.

All feels underhand and has certainly been done with questionable timing (with minimal capex left for Ingenuity), but it's not as if they're taking Ingenuity away from us and giving us no choice.

Different people will have different exit requirements and timings, but the board were never going to make it more desirable to transfer shares away from Ingenuity.

Think it's important to know that Frasers are now on board at this valuation. By giving Ingenuity up now, you're basically selling at the same price as Mike Ashley is buying, and he rarely gets it wrong.

Despite all this, I currently despise Moulding as I think this share price drop has been orchestrated, but I'm not letting him steal Ingenuity away from me.

To try and make you panic and sell

If you wait for the demerger, you won't get any shares in Ingenuity or a proportionate share in remainco

£300m valuation not £100m

Pearls, the placing was for THG as a whole. You could have purchased shares at 4.29pm yesterday at around 51p. Not much difference.

From the RNS:

Shareholders would therefore have the option:

· to elect to receive their pro rata distribution of IngenuityCo shares in which case such shareholders would then hold an equivalent proportion of RemainCo shares and IngenuityCo shares; or

· not to receive any of their pro rata distribution of IngenuityCo shares in which case such shareholders would see a commensurate increase in their respective interests in RemainCo's ordinary share capital. The proportion by which such shareholders' percentage interest in RemainCo increases would be equal to the value of IngenuityCo (as confirmed by the Board) which they have given up.

I'm about 2x or 3x but yea valuations point north.

Yea let's be honest, if we ever had a capital injection from a partnership or listed a division in the US, I can guarantee we would have had more dilution than we've had today.

£200m held in cash and cash equivalents

£150m in short term investments

£120m is allocated to restricted cash, set aside for debt servicing.

Total £470m

In 2025 THG are scheduled to repay £131m of debt.

They already have pretty much the entire cash for debt repayment in 2025 set aside.

They're also cashflow neutral to slightly positive as capex reducing on Ingenuity.

No liquidity issues.

We all laugh at tiger but in fairness he's called it right for the past couple of months.

The Steve's haven't been swarming today, which is highly unusual...

So long as we get exactly the same opportunity as the insiders (I.e. to roll with ingenuity), this hasn't been done to the detriment of PI's. It does give some optionality for those that don't want to roll.

Undecided until I know the terms.

Put me out my misery and give me 225p Matt

Bringing up the wealth inequality between generations again:

Boomers are the wealthiest generation that’s ever lived—and millennials are the ‘biggest losers’ thanks to economic crises

https://finance.yahoo.com/news/boomers-wealthiest-generation-ever-lived-104103574.html

Research done by Allianz.

Interesting though, millennials are theorised to one day become the wealthiest generation, but only once all the wealth from baby boomers has been passed down! Made me chuckle.

Jed, you are the generation who are (partly) responsible for pushing house prices from 1.5x median gross salary to 10x. This is part of the reason why the rest of the economy cannot handle higher than 5% rates for longer than a couple of months.

Anyway, where are Apollo?!

Well, given the market currently values Ingenuity at 0 or negative, one can only assume the advised rate will be 0p

That's right goldenfoot, in fact, my dogs have more shares than Kelso.

Ludicrous short attack. One last bite of the cherry before rerate? Here's hoping, one day Rodney.

Not to mentioned whatever dividend we receive from Ingenuity sale.