Member Info for Temple_of_Doom

"Doesn't it fit exactly with that, as it's the sale of the equity holding in a subsidiary?"

.. for a nominal sum .... so read my posts below ... 5p a share maybe?

"You can hold unlisted equity inside a SIPP"

Depends upon the SIPP provider - Interactive Investor would not since it requires a KIDD investor document ... as illustrated by the now cancelled sale of Evraz's now cancelled delisting of coal assets because it was being listed on the MOEX .... so as I implied ... there will be a forced sale of these assets if there are any assets to sell.

"Yes it does" - you agree then whinge on.

"that destroys their public and professional profiles" - Oh dear .....

Why bother to counter argue whilst adding nothing?

Seems a case of verbal doo doo.

"they've sold equity in the form of a put option, not the holding company, so the shares in the holding company still exist."

The above doesn't fit with:

"to allow it to dispose of the entire issued ordinary share capital of Raven Russia (Holdings) Cyprus Limited ("RRHCL") (being the existing owner of all of the Group's Russian assets and related debt) to its Russian management team, for nominal consideration."

.. to my mind. The equity is being transferred to the Russian management team so current equity holders are gone for a nominal value.

"they can of course be held outside on an ISA/SIPP."

It's the transfer of untradeable stock out of the SIPP/ISA wrapper that is difficult. SIPP holders will be obliged to sell. They cannot transfer untradeable stock out of a SIPP wrappper.

"banks will accept a default on RAV's debt "

I'm pointing out that RAV as the holding company, with debt, being paid from preference shares held in Prestino Investments Ltd as a part of the transaction also needs a mechanism to pay preference share holders in RAVP.

Without a mechanism, preference share holders will receive nothing ... with the additional possibility, that with equity transferred to Prestino Investments Ltd there is no incentive to keep RAV solvent - so directors can let RAV implode, keep the assets and let banks nurse their losses.

Tutusadaxus …

My reading is that ordinary shareholders are just about wiped out … by the put option …. Since that equity is gone by virtue of agreeing tonthe put option … the preference shares mentioned in the new holding Cyprus company will be used to pay off debt held by the now shell company Raven Properties … what happens to holders of RAVP preference shares is unclear … and difficult because as a delisted company any rights will not be suitable for SIPP or ISA wrappers …. So those folk will similarly be forced to sell or will equally be wiped out.

I’m afraid this looks a case of writing off the holding and keeping fingers crossed something comes back.

"The Transaction is structured as a put option for nominal cost in the Company's favour, to allow it to dispose of the entire issued ordinary share capital of Raven Russia (Holdings) Cyprus Limited ("RRHCL") (being the existing owner of all of the Group's Russian assets and related debt) to its Russian management team, for nominal consideration."

Put Option
"an option to sell assets at an agreed price on or before a particular date."

"Zelensky is stuck " We will never know how much Zelensky voicing wishes to join NATO and the EU tipped Putin off the edge .... but I suspect some diplomacy would have been better either way ... but then we would not have learned how much of a nutter Putin actually is.

With £437 million net assets from todays RNS that would seem to equate to a £1,100 million portfolio valuation minus £673 million loans, so with 226 million prefs valued at £1 and 566 million ordinary shares that would fill in the gap valued at 39p each.

From the RNS:

"the Company is unable to assess the current value of these loans and preference shares or the ability of RRHCL to service these loans or preference shares in the future at this time."

and

"to its Russian management team, for nominal consideration."

Suggests to me that shareholders will be given an offer .... probably a paltry premium on the last traded price so perhaps 4-5p a share?

Limits tripped out at 120p ah well … such is the market GLA

Not so easy …. For the same reason NATO could not go into Iraq in the first Gulf War … although entering Iraq in 2003 just goes to show how the west panders to the whims of the USA … and Blair took the flack in the UK.

Biden standing with his smug face saying ….. oh by the way USA has plenty of expensive oil to sell … sums up sanctions. Major oil producing countries with major sanctions.

"can't see why it can't continue to earn loadsa dosh - problem is that we are probably screwed unless you want it in roubles"

Russia is unlike any western nation - When the Rouble is in trouble, Russian people default to $'s as a legacy of the USSR and the soft currency that existed at the time, and now the € - as will business. There will be a lot of western currency floating around.

Moreover, stores holding goods in the Raven warehouses will not be able to sell, so I imagine they will be forced to pay storage costs as surplus goods are held up for sale.

A short war, and things will probably be OK . the west hast to reduce sanctions as an incentive to Russia to be good. A long war ... bust of course.

But for god sake Putin ..... stop this madness ... it's obscene.

Agreed …. This is a binary flip now …. Bust or back to £1 … but directors have a fair number of RAVP holdings so will want to claw some money back if it goes to the wall and preference shares sit above equity holders when the vultures come out.

"Is this legal or illegal? "

The question can only be answered by the courts. I take the view, that folk like Abramovich, if they come out against Putin, are likely to end up on his hit list, so are wise to keep quiet. Meanwhile, Abramovich's daughter spoke out against the invasion, and I suspect that is all that one can reasonably expect.

I would have thought it better to try to get Oligarch on the side of the West .. but the USA, has taken a different route, while the UK has followed suit.

Either way, Russian sanactions I saw are predicted to cost UK another 0.5% of GDP wiping out the benefits of Japan and USA trade deals post Brexit ....

.... so after Brexit, CV19 and now Russian sanctions things do not look great for the UK economically speaking ... IMO.

" if Chelsea had not been such a popular football club" Aside from the fact it is a big club in Prime London position, whilst being badly run in 2003 and is why Abramovich bought it ....
... the bloke has done an excellent job with Chelsea.

That suggests that Abramovich has business acumen .... there are some people who are just good at what they do.

I'll have a few more by £1 ..... but not in a hurry too many bombed out stocks elsewhere.

Demerger cancelled?

Those short Evraz are going to be bricking it.

NAV 40p target.

Grabbed a few back today .. sell spikes buy back dips ..... works .. until it doesn't. GLA.

Certainly before 2014 the UK was a major supplier of arms to Russia …..

"Under the planned laws, a Moscow court would consider requests from board members to bring in external managers and could then freeze shares of foreign-owned companies."

Tit for tat.

Fair enough.

Indeed …. Imagine being short with a risk of a 200% gap up after the war ends.