The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
We should keep in mind that the main reason Evraz was suspended was that's its largest shareholder was sanctioned.
Do you really think that the UK government is going to drop RA from the list of sanctioned individuals within a few weeks of Russia declaring victory?
Hope you're right but I can't see it myself.
Assuming the worst and Evraz lost RASP, the operations in Russia and all the cash held by Russian banks then Evraz would be left with the non-Russian assets and cash in non-Russian bank accounts.
That would still retain some value in the company but it would be a real kick in the danglies for us minority holders. I:m sure the oligarchs would get the assets back in some shape or form that eventually as long as they don't upset you know who.
If this Bill does go through, Evraz (as a foreign legal entity) will be in an interesting situation. Yes, it does have an interest in RASP that could be confiscated. Yes, it does have Rissian operations that could be confiscated. However, the majority shareholders of Evraz are Russian oligarchs so Russia would mostly be penalising Russian owners. That is unless they are taking with one hand and giving back with the other.
I guess they could take assets away from Evraz in order to penalise the minority shareholders, but would they really be interested in us little guys? Maybe, but they must have bigger fish in mind...
Lodan1 are you referring to the draft Bill detailed in the link below?
https://sanctionsnews.bakermckenzie.com/draft-bill-on-nationalization-of-russian-assets-owned-by-foreign-persons/
Ladies and Gentlemen, give it up for Mr Sigmund Freud :)
LB21 - come on, be honest. You want shares but can't get any, right...? Just buy a fund that already has a holding shares and then you've done all you can. No need to come on here with nonsense about Evraz going bust. This stock may be worth nothing in a couple of given scenarios but Evraz going bust isn't one of them.
My reading of the RNS is that Evraz is deleted from the FTSE indecies, but it remains listed on the LSEG.
Apologies, if I:be made a mistake. I'd like to be abusive towards you too but I honestly can't be bothered. Catching up on Eastenders atm.
Further to the FTSE Russell notice released 11 March 2022, detailing the removal of several UK companies due to difficulty in trading, please see details of affected indexes and effective dates below:
Evraz (UK, B71N6K8) will be deleted from the index.
Polymetal International (UK, B6T5S47) will be deleted from the index.
Petropavlosk (UK, 3154454) will be deleted from the index.
Raven Property Group (UK, B0D5V53) will be deleted from the index.
NB Private Equity Partners (UK, B28ZZX8) will be added to the FTSE 250 Index, and deleted from FTSE SmallCap Index.
Standard Life Private Equity Trust (UK, 3047468) will be added to the FTSE 250 Index, and deleted from FTSE SmallCap Index.
All changes are effective from 21 March 2022.
The Financial Times Stock Exchange (FTSE), now known as FTSE Russell Group, is a British financial organization that specializes in providing index offerings for the global financial markets. The London Stock Exchange Group (LSEG) owns the FTSE Russell Group. In addition to the FTSE Russell Group, the LSEG also owns the Borsa Italiana, Millennium IT, and other financial brands.
Logan1 - let me look into that. I've not got to the Daily Star yet. I don't think RA is risking his health attending these meetings between Russia and Ukraine simply because he is bored. Do you?
hopeful118 - that is a very valid point. But the multi bagging opportunity is there for long term holders, if they are prepared to take a bit of stick. What price do you put on a reputation anyway? It's not like oligarchs need to get references to do business. They just set up one shell after another and before you know it you can't get to the bottom of who you are dealing with. That's part of the current problem already.
I only had a bit of fluff I'm afraid. Uncharted waters is where we are.
Oligarchs are feeling the squeeze and we don't know what this will lead to over time. It could become an option for them to try and protect assets in any way they can.
https://www.mirror.co.uk/news/uk-news/mega-rich-russian-oligarchs-surrey-26620376
Jotom750 - have you been following RAV? Granted, different jurisdiction but illustrates the concerns I had.
There's no FTSE 100 company controlled by a handful of Russian oligarchs that I've seen tumble so quickly. No recent examples of a superpower starting a war in Europe either. I think we're in uncharted waters and we don't know how the BOD or majority shareholders will react to suspension in the mid to long term. Can't give you any comparable examples, sorry.
Not stirring, honestly. Just pointing out that the multi bagging returns on suspension lifting need to be balanced against the benefits minority shareholders have received in 2022. That may be what we see full stop, end of story. It's a risk to keep in mind IMHO.
Oiy Lodan1, I'm not that old! This was only 5 years ago. You're right, of course but that doesn't always apply with the older generation.
Anyway, looking at your email is one thing. When you're on holiday in Turkey or Spain, it can be a beyach getting a proxy form printed, scanned or faxed. It's the last thing I'd be thinking of when away for two weeks with the kids on our first holiday post covid. There is also the 'what difference does my vote make anyway' brigade who would simply not bother.
You will never get 100% of the total voting rights participating in a vote for a company with as many different underlying beneficiaries as Evraz has. Only a relatively small percentage have to fail to register a valid vote before the 66% starts approaching 75% of votes cast. I sometimes couldn't get a duck that had been lined up (in HK) because thier authorised signatory went on holiday and they didn't want to disturb him!
In a previous life I was a CoSec. We would be pretty certain we had sufficient votes before sending out the proxy forms though discussions with major shareholders.
If the 75% was in any doubt, we would send the proxy forms out during the summer holidays. The forms go to the nominee accounts on the register, the nominees then contact the underlying to get them to fill out and return the form. However, the nominee would often find the beneficiary is on holiday. Even if they are not, some beneficiaries don't open their post in time to return the form because they thought it was spam.
Hence why it is easy to get 75% of votes cast if you have your ducks in a row. It's not particularly fair sometimes when you have controversial resolutions but it's what happens in practice.
Keep an eye on the in box during summer and Christmas holidays.
jezzahold - they only need to get 9% to reach 75%. If they approach half a dozen large holders with a binbag full of bank notes and a stock transfer form, they will get 75%.
Anyway, it's 75% of votes cast on the resolution and not 75% of total voting rights. A lot of Nominees or PIs would fail to register a vote sadly.