Assetco Share Discussion Threads

[treacle32] 30/8/2011 19:12

Everyone knew the placing was forthcoming including you when you were posting about ASTO on other threads and on 22 Aug. IMO as I've said before at these levels we shouldn't be experiencing dilution and IMO more for the large holders from 10p and higher.

Market will preceive the SOA news and fundraising as a lifeline and we should jump significantly from these levels imo. We at these levels because we were going bust, not the case anymore imo.

[treacle32] 30/8/2011 18:27

Found the below which relates:-

£15m Proposed Investment - secured for Abu Dhabi

12/01/2009

Notice of General Meeting

AssetCo plc, (AIM : ASTO) the integrated support services business, announces today that it proposes to raise approximately £15 million (before expenses) through the issue of preference shares by AssetCo Abu Dhabi, its wholly owned subsidiary, in order to support its activities in Abu Dhabi. The Company will later today send a circular to shareholders seeking approval for the increase in the authorised share capital and the authority for Directors to issue 24,509,802 warrants each exercisable at a price of 61.2 pence per Ordinary Share.

[treacle32] 30/8/2011 18:23

SOA and now fundraising as predicted being put into place.

'the acquisition of the AssetCo Abu Dhabi Preference Shares'. Not sure about this?

[treacle32] 30/8/2011 18:20

RNS Number : 2744N

AssetCo PLC

30 August 2011

30 August 2011

AssetCo plc ("AssetCo" or "the Company")

Posting of Scheme Document in connection with a proposed Scheme of Arrangement with Creditors and update on proposed Placing

Further to the Company's announcements on 23 and 25 August 2011, the Company announces that it has today posted a document (the "Scheme Document") to certain of its creditors (the "Scheme Creditors") in respect of a proposed scheme of arrangement under Part 26 of the Companies Act 2006 between the Company and the Scheme Creditors (the "Scheme"). The Scheme Document explains the background to and reasons for the Scheme, sets out the full terms of the Scheme and contains notices convening meetings of creditors of the Company.

The Scheme is part of a proposed restructuring and refinancing of the Company (the "Refinancing"). The objectives of the Refinancing are:

(a) to allow for a refinancing of the Company by way of a proposed placing of new shares in the capital of the Company (the "Placing"), it being an integral condition of the proposed Placing that the Scheme is approved and becomes effective;

(b) to put the Company in a position where it is able to trade as a going concern;

(c) to improve the return for creditors of the Company as compared to that which would be expected were the Company to enter into an insolvency procedure; and

(d) to provide a stronger platform for the growth of the Group's operations in the Middle East.

Further details of the proposed Placing, the acquisition of the AssetCo Abu Dhabi Preference Shares and the Shareholder Resolutions will be contained in a circular to the Company's shareholders (the "Shareholder Circular"), which is expected to be posted to the Company's shareholders in approximately 7 days and will thereafter also be made available on the Company's website at www.assetco.com. The Shareholder Circular will also contain notice convening a general meeting of the Company's shareholders for the purposes of considering and, if thought fit, passing the Shareholder Resolutions.

[comedy] 30/8/2011 14:26

if they are getting out then just over £156k buys you over 3% of co. ...lol shame we had such a fall in markets since february most in bomb shelters holding on to their dosh...if they stop selling or deal news hits this will go 50% to 150% in a jiff...end of next week will know if getting out for sure??? news comes and wheer will eb if positive..wanted to taek another 200k at 2.1p this morning..lol hindsight??

[treacle32] 30/8/2011 12:03

I don't want a takeover. We will get more value and rises from the SOA news and the 10 million injection.

[mister md] 30/8/2011 11:54

why is arcapita dumping huge chunks when they are meant to be the only remaining bidder ?

Asset Value Investors Ltd Form 8.3 - [AssetCo/Arcapita Bank]

[treacle32] 30/8/2011 11:40

Like Friday, offering a premium on the bid, 2.22p. IMO more larger buys in the pipeline and spread deliberately wide to deter buying.

[treacle32] 30/8/2011 11:00

Nice 477,124 buy at 2.50p. Near £12,000 buy, did say a large buyer was around.

[mrs robinson] 30/8/2011 10:52

Was that a 477,124 buy @ 2.5p - could be life in this yet!

[treacle32] 30/8/2011 09:47

For now Tez, the others will be here when the SOA news is out and at higher prices.

[tez123] 30/8/2011 09:36

Looks like it's just me and you then Treacle.

Come on Riddler keep that deramping up on LSE

[treacle32] 30/8/2011 09:08

Auction at 2.50p. Did say someone is buying big on Friday and on the order book.

[treacle32] 29/8/2011 20:34

The SOA deal could also be announced well before the next court date of 28th September. That date is only for final approval it seems. Documents to be posted this week so maybe even finalisation by mid-September.

'The majority of the investors will still have to agree before the deal can go ahead and it will need final approval of the court on September 28'.

[treacle32] 28/8/2011 22:43

IMO as thought we will have the scheme of arrangement implemented then fundraising of 10 million. This is exactly a JJB scenario and then do the fundraising at a higher price. The same backers from 10p early this year imo wouldn't want their shareholding too diluted by doing it prior to scheme of arrangement. It's already stated that it is subject to scheme of arrangement. I can see a massive spike and over 10p once SOA is approved and then fundraising at 7-8p possibly. If the spike is replicated as happened in JJB then who knows...that went from 4p to 35p on the CVA news before coming back down to 12p. The large shareholders have asked for the SOA and if approved, they'll stump up the 10 million pounds. There's every reason to predict a spectactular rise on this news as witnessed with JJB.

From 25th July RNS:-

'As a result, the Board is pleased to announce it has received a refinancing proposal from the Investor Group that would involve, inter alia, a GBP10m equity injection into the Company and compromises with certain creditors of the Company to be implemented through a scheme of arrangement'.

[treacle32] 28/8/2011 15:57

When JJB had their CVA approved in February this year the price rocketed in a straight line over a day or so from 4p to around 35p before coming back down to around 12p. Subsquently, fundraising followed. IMO we will experience a significant rise like that too once our SOA is approved in September. And then ofcourse fundraising or takeover may follow afterwards. I'm in for that spike on the SOA news. It was hard to buy on Friday and IMO our rise maybe more lethal with not much of a free float imo.

[treacle32] 26/8/2011 20:32

'But if they agreed to negotiate with the company on a deal they could walk away with 23.5 per cent. In return they would have drop any further demands for cash, wiping out the £100m plus owed by the firm'.

If the above happened then the debt would be reduced from about 140m to only around 32 million. I'm presuming there would be set repayments every month etc. How much would Assetco be worth on the share price? I think it would be quite a bit especially if the bidder is left with 32m + whatever he offers for shares. Current position for bidder would have been to pay 140m + whatever on shares.

32m + 25m for shares (i.e. 10p) = 57 million only to buy the company and satisfy all the major shareholders. Or why not more than 10p and say 15p which would still be only 60 million and 20p being 80 million. Even at 20p it would still be 60 million less on the current position and from the 140m figure.

Why not wait for a couple of months and offer 80 million i.e. 20p a share and the bidder saves 60 million too by holding off?

As we all know, bids of 20p and more have already been rejected too recently. The debt going is my preferred option and I don't want the takeover just yet otherwise we could end up with around 7-8p. I think there'll be alot more value and anything between 10-20p at the very least here now for those prepared to hold until October.

[treacle32] 26/8/2011 16:36

Positives for me:-

'But if they agreed to negotiate with the company on a deal they could walk away with 23.5 per cent. In return they would have drop any further demands for cash, wiping out the £100m plus owed by the firm.

A hint came from Northern Bank's lawyer after the hearing when he told me that the deal could be "good news" because it could rescue the company and remove most of its debts. He thought investors were " taking a punt" on the firm's future.

Once the debt is cleared it then makes the company more attractive to a take over. Nothing more was said in court about a bidder – known to be Arcapita Bank in Bahrain – which suggests they have gone cold on the idea'.

[treacle32] 26/8/2011 16:33

Judge aids rescue package for " bust " privatised London fire firm

A High Court judge came to the potential rescue of AssetCo, the near insolvent owner of London and Lincolnshire's fire engines, by granting the company another month to negotiate an extraordinary deal with its creditors to wipe out debts of over £100m.

Mr Justice Floyd, sitting at the Royal Courts of Justice in London, granted applications to adjourn moves until September 28 to wind up the firm in favour of allowing the company to open negotiations with its creditors on a deal that will recover some of their lost investments.

Mr Lloyd Tamlyn, for AssetCo, explained that if the company went bust now, the banks and other investors would be lucky to get 0.5 per cent of their money back. But if they agreed to negotiate with the company on a deal they could walk away with 23.5 per cent. In return they would have drop any further demands for cash, wiping out the £100m plus owed by the firm.

In effect investors in AssetCo look set to lose some £77m. Since the judge was aware that this case was being reported, AssetCo were careful not to ( as at other hearings) list who is owed what.

But from the previous hearing ( where the registrar was not aware he was being reported) the creditors named included state-owned Halifax Bank of Scotland which is owed £12m and energy company, EDF, which suggests AssetCo may not have paid fuel bills for premises they run in London. Others include FD Direct, the Inland Revenue. They will still be big losers.

The difference the deal would make is shown by Northern Bank who are owed £1.3m and have been very active in opposing moves by AssetCo to give preferential pay outs to its lawyers and accountants.

Adam Goodison, for Northern Bank, who had pressed for the company to be wound up, explained to the court why the firm is now " content" for the deal to go ahead. This followed negotiations that changed the creditor status of Northern Bank, so it could benefit from the proposed pay out.

If AssetCo went bust the bank would be lucky to get £10,000 back from the £1.3m they put into the company. Under the revised deal the bank would get back nearer £300,000. The same would apply to other creditors.

The question – dealt in passing during the hearing – is where has AssetCo got the cash to even finance this deal? It appears to have come from money raised from international financiers who have given another £10m cash to the company on top of money raised earlier this year which severely diluted its share price to near junk status.

At the last court hearing the financiers were named as North Atlantic Value LLP, a part of the J O Hambro Capital Management Group, Utilico Investments Limited and Henderson, which incorporates the interests of Gartmore Investments Limited.

A hint came from Northern Bank's lawyer after the hearing when he told me that the deal could be "good news" because it could rescue the company and remove most of its debts. He thought investors were " taking a punt" on the firm's future.

The majority of the investors will still have to agree before the deal can go ahead and it will need final approval of the court on September 28 – but the judge's move means that it could get Brian Coleman, Tory chair of the London Fire Brigade, off the hook from seeing London's fire engines owned by administrators.

Once the debt is cleared it then makes the company more attractive to a take over. Nothing more was said in court about a bidder – known to be Arcapita Bank in Bahrain – which suggests they have gone cold on the idea.

The situation is far from satisfactory and does not rule out a slow death of the company,reflected in its low 2.2p share price, valuing it at £5.52m today.

FBU general secretary Matt Wrack said: "Privatising emergency services is stupid and dangerous. The long, slow death of AssetCo is a perfect illustration of this. We still do not know what is going to happen to London and Lincolnshire's fire engines. They are, we believe, going to be the property of AssetCo's creditors when AssetCo finally goes under. I call on the London Fire Brigade and the government to bring the fleet and their maintenance back into public ownership."

This blog was trying to contact Tudor Davies, head of AssetCo, for a comment.

[grannyboy] 26/8/2011 16:18

Treacle absolute boll#x, it'l be some holder putting a sell limit on their shares so they can't be lent out to shorters....As to the buyer must be shook?....

[treacle32] 26/8/2011 15:29

764,250 buy order on the order book trying to be filled.

Someone has also put a 1 million sell order at 4p on the order book. Must be confident of the ask price getting to 4p???

[mrs robinson] 26/8/2011 15:00

Now 2.00(1mill) v 2.25(50k)

[treacle32] 26/8/2011 13:18

Better, 2.15-2.25p.

[warwick69] 26/8/2011 11:46

asset value still offloading down to 8.4 million now last 600k lot sold at 2.22 they are getting more desperate to sell by the looks?

[warwick69] 26/8/2011 11:41

yes absoultely un real the MM's on this one must be having a great laugh at our expense. I am still long (will win or lose the lot this time) sorry to have been an idiot Treacle just get so annoyed by all these games by MM's ?

bet if i put a sell order in at 2.2 or 2.3 the bid would drop further and they would not show my offer to market?