Telecity Share Discussion Threads

[dr_smith] 02/2/2016 16:46

I opted for cash and have received £11.45 per share.
I had wrongly assumed that the share price shown on Google reflected the new mix:


But this shows circa £12.60 per share.

I queried this with online broker and they quoted me :
‘’The Company have announced that in accordance with Rule 2.12 of the City Code of Takeovers and Mergers it is in discussions with Equinix Inc which may or may not lead to a formal offer being made. Equinix Inc are offering GBP11.45 per share.’’

I am not aware of crystalisation/conversion dates, so expect a little tolerance in figures but can't reconcile the big £11.45 - £12.60 share price difference.
Can anyone explain please?

[dr_smith] 05/12/2015 20:34

If you are a holder you should have it all in writing.
I had an online link and went for all cash subject to availability.
google telecoty offer, find:
hxxp://www.telecitygroup.com/investor-centre/investor-centre-home.htm
and see links top right.

[ali47fish] 05/12/2015 16:58

i am surprised there ano comment sabout the takover by equinix-my broker has written and there is a match and mix offer of cash and shares- can anyone offer some clarification on the options - i am inclined to opt just for cash as i am not sure how many shares i will get in equinix plus it is an american company which unless profitable i am not keen to hold- may thanks

[dr_smith] 24/11/2015 09:21

Hi Itchy - the only other reader of this thread ;-)
Timetable out today has:

"Effective Date of the Scheme 15 January 2016 ("S")(5) "

Usual provisos re court dates may change the above date.

[dr_smith] 15/11/2015 09:15

Cheers Itchycrack.
In your book I'm very wrong on both counts (homes/long).
I believe I am probably right on both counts.
Depending upon volatility we could both be right ;-)

Re: "Massive recent Director sells!"
David Thomas BDEV Chief Executive as at 20/10/15 931,577 shares
2/11/15 1,276,328 shares
IMO DYOR :-)

[itchycrack] 15/11/2015 08:52

re: 'homes' - SHORT BDEV - easy money down to 500p to fill chart gap! Everyone else is long and WRONG! Massive recent Director sells! Follow their lead!

[dr_smith] 14/11/2015 09:26

In my post 1435 I calculated 3.48% upside, so if it is 6 months to complete (hopefully sonner) that's a 7% p.a. potential gain.
So, if I can find better than 7% return with like/lower risk I should sell.... oh nearly forgot stamp duty, alternative share(s) would need to be >8%.

Also, there is the potential upside( or downside) on the new Equinix, but don't know what expectations are.

IMO DYOR :-)

[dr_smith] 14/11/2015 09:09

Cheere ItchyCrack.
I think I stayed in as there was a small 'certain' upside and as a low risk invetsor seemed 'a bird in hand is better than 2 in the bush' point of view was warranted.
Not sure if I factored in though how long it is taking.

Re "better homes for my money elsewhere at the moment."
Not sure if 'homes' was a hint, but apart from building sector and EZJ I struggle to find co's with good EPS and prospects.

[itchycrack] 13/11/2015 22:46

I think most people have sold out buy now.
I has a huge holding here but sold out on the initial news - better homes for my money elsewhere at the moment.

[dr_smith] 13/11/2015 16:47

(I'm talking to myself but here goes)
EC now gives OK and RNS says we should have timetable by month end:
===================================
As a result of this clearance, the pre-condition of the Offer has been satisfied and the Scheme Document in relation to the Offer is expected to be posted to TelecityGroup shareholders before the end of November 2015. The Scheme Document will include full details of the Scheme, together with notices of the Court Meeting and the TelecityGroup General Meeting and the expected timetable, and will specify the action to be taken by Scheme Shareholders.
Equinix expects the Offer to close in the early part of the previously communicated H1 2016 period.
=====================================

[dr_smith] 11/11/2015 09:27

extract:
---------------------------------------------------------------
11 November 2015
TELECITY GROUP PLC
TelecityGroup Update on Recommended Transaction with EquinixThe ratio has been revised such that each TelecityGroup shareholder will be entitled to receive:

For each TelecityGroup share: 572.5 pence in cash; and
0.0336 New Equinix Shares
There is no further update on the Offer at this stage.
---------------------------------------------------------

My sums: 1 * 572.5
Equinux share price (old/new not sure?) = $297.54 (* .66) = £196.38 * .0336 = £6.60
Total £12.325
TCY share price today £11.91

Upside premium post meger: 3.48%

I am unsure my equinix share price above is the "new/adjusted" sp, but 3.48% upside looks about right.
My own calcs, DYOR :-)

[dr_smith] 29/10/2015 11:40

Anyone out there?
I'll stop posting on this thread if I'm the only one. ;-)
RNS (don't have link as rec'd as part of email):
================================
BALL CORPORATION

Q3 EARNINGS RELEASE



Ball Corporation ("Ball") today reported third quarter 2015 net earnings attributable to the corporation of $44.5 million, or 32 cents per diluted share (including net after-tax expense of $110.4 million, or 78 cents per diluted share for business consolidation costs, including economic hedging losses, in addition to debt refinancing and other costs) on sales of $2.1 billion, compared to $147.4 million, or $1.04 per diluted share, on sales of $2.2 billion in the third quarter of 2014. Results for the first nine months of 2015 were net earnings attributable to the corporation of $225.6 million, or $1.60 per diluted share, on sales of $6.2 billion, compared to $394.0 million, or $2.76 per diluted share, on sales of $6.5 billion in the first nine months of 2014.

Comparable earnings per diluted share for the third quarter and year-to-date 2015 were $1.10 and $2.67, respectively, versus third quarter and year-to-date 2014 comparable earnings per diluted share of $1.10 and $3.04, respectively.

Details of comparable segment earnings, business consolidation activities, historical segment reporting, Rexam transaction-related hedging and costs can be found in the notes to the unaudited condensed consolidated financial statements that accompany this news release.

"Results from operations and global metal packaging volumes were in line with our expectations for the quarter. Foreign currency translation headwinds and project start-up costs both continued, the impact of which totaled 11 cents in the third quarter and 45 cents year-to-date, including net aluminum premium impacts and director retirement costs," said John A. Hayes, chairman, president and chief executive officer. "We continue to work on our proposed offer for Rexam PLC, including reaching agreement with our Brazilian joint venture partners for an exchange of Ball shares for the partners' remaining interest in the joint venture. Conversations with regulators in Europe, Brazil and the U.S. continue, with a goal of securing necessary approvals to enable the acquisition to close in the first half of 2016, which is consistent with our prior communications."

Metal Beverage Packaging, Americas & Asia

Metal beverage packaging, Americas and Asia, comparable segment operating earnings in the third quarter 2015 were $131.9 million on sales of $1.1 billion, compared to $133.7 million on sales of $1.1 billion in third quarter 2014. For the first nine months, comparable segment operating earnings were $383.4 million on sales of $3.2 billion, compared to $400.8 million on sales of $3.2 billion during the same period in 2014.

High single-digit growth for specialty beverage packaging in the segment was unable to offset single-digit volume declines and continuing price pressure in China, despite significant cost-out initiatives executed in the region. In Brazil, year-over-year volume comparisons turned favorable and the beverage can continues to gain strength in the packaging mix for beer and energy drinks.

Metal Beverage Packaging, Europe

Metal beverage packaging, Europe, comparable segment operating earnings in the third quarter 2015 were $61.1 million on sales of $450.1 million, compared to $63.8 million on sales of $489.2 million in the third quarter 2014. Results for the first nine months were comparable segment operating earnings of $149.6 million on sales of $1.3 billion, compared to $193.0 million on sales of $1.5 billion in 2014.

Mid-single-digit volume growth for beverage cans across Europe and a small aluminum premium tailwind in the quarter were not enough to offset unfavorable currency translation. On a euro basis, comparable segment earnings were up in the quarter. Our European plant footprint navigated a tight supply situation and absorbed out-of-pattern freight to ensure our customers' needs were met.

Metal Food & Household Products Packaging

Metal food and household products packaging comparable segment operating earnings in the third quarter 2015 of $30.6 million on sales of $372.0 million, compared to $43.0 million on sales of $450.6 million in the third quarter 2014. Year-to-date results were comparable segment operating earnings of $89.5 million on sales of $1.0 billion, compared to $119.1 million on sales of $1.2 billion in 2014.

Third quarter segment results and volumes were influenced by the previously disclosed U.S. food container customer shift, unfavorable currency effects and project start-up costs. Global aluminum aerosol volume grew mid-single digits in the quarter and our new aluminum aerosol plant in India celebrated its grand opening earlier this month.

Aerospace and Technologies

Aerospace and technologies comparable segment operating earnings in the third quarter 2015 were $21.4 million on sales of $203.4 million, compared to $21.2 million on sales of $221.7 million in the third quarter 2014. For the first nine months, comparable segment operating earnings were $60.9 million on sales of $648.4 million compared to $70.1 million on sales of $683.5 million during the same period last year. Backlog at the end of the quarter was $638.4 million.

During the quarter, the segment successfully integrated the propulsion subsystem for NASA's Green Propellant Infusion Mission ("GPIM") onto the spacecraft bus and began system performance and environmental testing. GPIM is scheduled for a 2016 launch.

Year-to-date 2015 segment earnings continue to reflect the greater number of program completions that occurred in the first nine months of 2014. Effective cost management continues across the segment and contracted backlog has stabilized ahead of various programs expected to be awarded in late 2015 or early 2016, including several recently submitted proposals.

Outlook

"The businesses are effectively managing working capital and, including approximately $500 million of capital expenditures, we now expect 2015 free cash flow to be in the range of $600 million, excluding cash costs for the proposed Rexam acquisition. Though the purchase price and interest rate hedges we executed to mitigate risk related to the proposed transaction's purchase price economics impacted our quarterly GAAP results, we are financially well positioned at this stage in the acquisition timeline," said Scott C. Morrison, senior vice president and chief financial officer.

"Our third quarter was largely consistent with our expectations given anticipated currency translation and start-up cost headwinds. The difficult year-over-year volume comparisons and aluminum premiums headwinds are behind us and existing growth capital projects will provide momentum as we move into 2016," Hayes said.

==================================

[dr_smith] 23/10/2015 08:13

RNS:
===============================================
Equinix, Inc. ("Equinix") confirms that the European Commission has entered into a period of market testing based upon commitments proposed by Equinix and Telecity Group plc ("Telecity").

These commitments have been proposed with a view to obtaining EU Commission Phase 1 clearance of the previously announced offer by Equinix for Telecity (the "Offer").

As a result of this development, the European Commission's Phase I review timetable is automatically extended by 10 working days to 13 November 2015.

Whilst there can be no assurances, as a result of these commitments Equinix is of the view that there is a good prospect that the proposed transaction will be cleared by the European Commission during its Phase I review. If that happens the pre-conditions to the Offer will be satisfied and the relevant shareholder and scheme of arrangement votes will be sought from Telecity shareholders thereafter. Although there can be no assurances, this would allow the Offer to close in line with the previously communicated guidance of H1 2016.

There is no further update on the Offer at this stage.

========================================================================

So thats Europe, I can't find on my previous notes any mention of needing state side approval. In absence of comment on this in the RNS I assume it is n/a or already approved.
I guess 13/11/15 is the latest date. We could well get a EC response (hopefully postive) before then.

[dr_smith] 30/9/2015 09:15

RNS "TelecityGroup Update on Recommended Transaction with Equinix".
Pro rata adj to keep same monetary offer, but still no fixed date mentioned - it's not rocker scince.
Maybe the merger will be a double celebration with man landing on Mars. ;-)

[dr_smith] 25/9/2015 13:09

I don't usually repeat RNS in threads, but this may be lost in sea of forms 8.3/8.5:
==============================
Telecity Group PLC ("TelecityGroup") confirms that Equinix, Inc. ("Equinix") has notified its proposed acquisition of TelecityGroup to the European Commission for merger control approval. The initial deadline for the decision has been set at 29 October 2015.

Details of the case will be published on the Commission's website at

This is consistent with TelecityGroup's previously communicated guidance that it expects completion of the acquisition by Equinix in the first half of 2016. This guidance remains unchanged.
==============================

So, still 2016 H1, hit snooze again..zzzzzzzzzzzzzzzzz

[spacecake] 24/8/2015 21:53

Looking at some of the failed T/O and the doubts over the Shell/BG deal, will this one survive the current panic equity sell off.

[jontyone] 16/6/2015 15:46

Iomart (IOM), for one. I've invested in it in the past.

[eyesoc] 16/6/2015 11:05

are there any other london quated companies in this sector ?

[dr_smith] 04/6/2015 18:26

Trouble sleeping at night?
Try reading this re merger (rec'd today via broker):
hxxp://www.telecitygroup.com/Downloads/presentations/Recommended-Cash-and-Share-Offer-for-Telecity-Group-PLC-by-Equinix-%20Inc.pdf

The 'effective date' is seemingly 2016 and within 15 days of first Calendar quarter following satisfaction of a pre-condition (but that could be waived by Equinix.

So seemingly before 15/1/16 or 15/4/16?

Semms slow and a long way off.

Any other expectations for 'effective date' amongst followers?

I was recently surprised by the slow process of t/o for REXAM which I hold, so it looks like more of my portfolio is in a go slooooow time warp. ;-)

In REXAMS case I thought the US authorities are slow, but seemingly, we are no better.

[dr_smith] 14/5/2015 08:43

Today, I note Digital Realty rules out offer for Telecity.

I assume they are a separate entity to Equinix:
----------------
7 May 2015
Possible Offer for TelecityGroup
The Board of TelecityGroup today announces that it has received an approach from Equinix, Inc. ("Equinix") regarding a possible offer for TelecityGroup at 1145 pence per share.
--------------------
I wasn't aware of a potential second offer, rumoured or otherwise.

Given that todays share price has dropped 3% I am trying I am trying to fathom what todays RNS means.
If it is/was a separate (potential) offer and Equinix offer is presumably unchanged, then share price would be unchanged.

So perhaps:
i) market was expecting a price war above 1145 which won't now happen (atleast from DR).

ii) market fears Equinix in absence of known competiton will drop offer below 1145.

and I suppose
iii) The Equinix offer is not solid, legally binding yet, so until such time as it has been formalised the share price will reflect the possibility it will not come to fruition.

Fair comment?

[caveat_emptor] 07/5/2015 10:38

God help us all if Sturgeon and Milliband are left
to face down Putin when he makes his next move.

I would'nt have to be a Conservative to want Cameron and Haig
for that (inevitable) job, and it should be enough to soberbthe thoughts
in every voter's mind.

Of course the UKIP guys would invite Putin to take over the country,
with their Lord Haw Haw approach.

[asturius101] 07/5/2015 07:13

Excellent news

[silverfern] 20/3/2015 18:09

INteresting but no substance there at all imho. Just read the whole of the RNS especially this bit: "...announce that they have entered into a definitive agreement on an all-share merger on the same terms as announced on 11 February 2015. The transaction will be structured as an offer by TelecityGroup to acquire all the issued and to be issued share capital of Interxion. (not may be or could be)

The boards of TelecityGroup and Interxion believe the combination of the two businesses is strategically compelling." etc . I will buy back in when the deal finally becomes done as there is a buy back programme for £800m which will support the share price

[jontyone] 18/3/2015 15:11

Not seen this mentioned by TCY, unless this is old news (evem though dated 17/3/15)

hxxp://www.itproportal.com/2015/03/17/problems-for-telecity-and-interxion-proposed-merger/