Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Just read Zico on other bb and implies i think what i was trying to get at, what happens if 1 entity/bank take the bulk of the placement, but a very low price and effectively takes control of the company, by owning over 30% threshold??, of the share in issue, cannot they control the direction of the company by installing their own team. If the shares were to be worth a low price, could they force the PI to sell their shares at the discounted price, for a full takeover and take the company private??
What happens if GH and his banking mates, having now seen the books, decide to pile in and buy the lions share of the placement, therefore technically taking control of the company, they have knowledge and can lead the conversation on the new shares price and the future direction
Nobody seem bothered by the RCF facilty extension until 2025, SUBJECT to the lenders being happy with the equity raise, basically means to me if the equity raise is not well received, they will rein back on the RCF, the pyrimid of cards will fall
Kier living is worth next to nothing after all the money put to it, if you take out the pensions and debt, which has been accrued by the KL division. The best is left as 15m, they pumped in 164m not that long ago. After tonights rns, why do shareholders have to vote on the 7th May, to a deal all the info is not out there. The way it is written on Fridays rns it give the impression GH has been funding for about a year, it gives the impression that more monies are due to kier group upon completion, KL is probably still loss making and there will possibly be a switchback that kier group will have to pay GH, maybe thats why kier keeping 15m in cash,
Money will be hard to come by as the have nothing to offer to underwrite it, the landbank is now gone, looked in to nmcn and the lenders they've gone to, look like non regulated, and offer loans from 8%, against property portfolio, results tomorrow will have to be exceptional, or the banks will be taking control, offering 5%to the shareholders to vote on, like interserve
That explains the blind faith in kier, thought it would have climbed higher today?. Nervousness still in construction with stepnell and nmcn bringing bad news, see nmcn are not getting mainstream banking help, looks like some type of secondary sub prime type bridging company, proves banking industry cautious,
Kier group injected 164m in to KL in Dec 19, looks like internal debt for equity, getting it ready for sale, and in June 20 stated it had lost 89m in the year end accounts, maybe Kier group are better off without it, and maybe a clever move if, they've sold to GH for 110m, if with that he is taking some of the current company debt.
Not sure if the market willl react well, to the news,? of the money received, 10m going in transaction costs??, 10m to the pension, 75m to lessen debt and 15m to retain. The market may read it badly if they see KL as the best money generator. I think the market will rise on Monday, breaking the £1 threshold, mainly with smaller investors buying in, will be interesting if large value sells take place, possibly institutions getting out. The 21st and the RNS stating still an equity raise, possibly means the pain hasn't finished.
Why not wait until the 21st to announce, is there other news they dont want to get overshadowed by the sale of Kl, 110m is a good price?? but nobody seems to state the size of the current landbank, so is it?? , it definitely make inroads in to the debt pile,
Tried to find if kier still do much supply chain finance, AD said he would reduce, and with the prompt payment code, i think most will have disappeared. Did find, that the practice kicked off mainly with, Balfour, carillion, and kier, mears, and others, the list is large, to extend payment terms up to 120 days, strangely the practice was much heralded by a D. Cameron!!, as for the government enquiry, as i can see, at the moment, the spotlight is on government departments and the use of greensill capital, no wider.
My thoughts are the lack of anything from the company regarding the constant stories of a KL sale and the possibility of an equity raise. Is either going to happen.? My opinion the board and the banks have something cooking, but I think they will put it to the shareholders to take a big haircut, leaving them with 5%,in the re-capitalised business. ie like they tried with interserve, and if it gets voted down, they will de-list and leave shareholders with nothing, the banks dont normally lose , day to day trading companies remain and only the group holding PLC disappears. The workers, contractors and clients all carry on like nothing happened. Time will soon tell
Nothing to do with kier International, as you correctly say are a, utilities company,toatally separate, do your digging on on kiers plc (uk) own website and look at dubai and saudi, and it is there, they are on the riyadh contract, and i agree in my over 30 years in construction, it has never suffered shortages as we are getting today, but i would say just as busy as mid 2000's,. The issue this time around is practically the whole world is on a infrastructure, building push which is straining the system