|Game over by the looks. My guess a 35p return.|
|Assume we'll get some news tomorrow. Suspect if a deal had been done it would have been announced on completion, so likelihood is return of remaining cash, which should be around 37p. Hope we don't get another extension - surely they've now had long enough!|
|Any views on likelihood of NBNK proceeding with a deal before 11th April deadline?|
|Bought 25k first thing this morning. Not appeared on trades data for some reason.
Been watching these for a couple of years and with possible cash distribution 20% above the current value only 6 months away it feels like the risk : reward is pretty favourable.
Could still be a deal done, particularly given the strength of Virgin Money, Aldermore, One Savings. Not too many other challengers out there, but there are some - ATOM, Charter Court, who could well see Nbnk as a cheap route to a float. Time will tell.
Also influenced by the success in recent months of Chrystal Amber. With two deals just finalised I suspect they may well turn their attention to Nbnk.
|Nice one Tree - lol|
|I doubt that very much treeshake. I think your credibility would take a hit on that.
This one will be a very costly invesment for anyone seeing as wilbur is strugglinig in greece and that's not including the £30 mill wasted on fresh air to date.
Legal costs alone make this a certainty to be wound up and a return of what's left (instis first) to shareholders.
^ 6 months left before it becomes a reality ^
For the record the tip to get people piling in was "bait" You will have noticed how it had the complete opposite effect. ie "Someone bailing out"
|New bandwagon arriving here soon|
|Somebody has piled out I guess, but not reported yet.
A bargain opportunity ?|
|By the way hedge fund wizard thank you for your post.
Are you following any other similar funds of interest ?|
|ahhh, im cashing in then|
|I think you'll find that this was tipped over the weekend in a newsletter. Hence the spike this morning, with the tip-followers piling in.|
hedge fund wizard
|It's just very very illiquid. Moves 10% on a couple of grand of trades.
My reading of CRS statement today is that they are "gathering evidence". May be some time before a decision to press ahead (or otherwise) with litigation...but who knows?|
|Well it will be interesting to find out what is going on behind the scenes, which we may get to know ahead of the full year results if the share price goes nuts as they will be forced to issue a statement on price movement.|
|It's up today presumably bcoz a few buyers read this
"We continued to engage constructively with NBNK's main shareholder, Wilbur Ross, and director, Lord Brennan, as well as former board members of the company. The Fund maintains the view that NBNK has scope for a legal case against Lloyds Bank over the failed sale of the 631 Lloyds TSB and Cheltenham & Gloucester branches, in 2011."|
|I rather suspect if they are going to make a move, now is the time to do it whilst TSB is in full play, there are now at least two parties who would be keen to stop NBNK creating waves (if not three), which would obviously be an out of court amicable settlement.|
|Hmmm I've been hoovering up all the loose stock at 34p and below Eurovision. That's 10% below net cash. Given the potential lawsuit (£100's of millions) the risk reward looks fab. However most likely nothing happens IMO.
I'd love it if they could persuade Juridica (or similar) to take on LLOY on a risk free basis (to NBNK).....and if not simply to cash out.
Will be interesting to watch but I expect a lot of protracted silence.
Dream dream dream...a £500m win would be a nice 20+bagger ;)|
|I wonder if there is an out of court settlement to be had here, otherwise they could put an injunction on the sale and throw all manner of spanners in the works until Lloyds start to play ball.
Market makers have clearly gotten wind of something.
Surprised the thread is so quite!|
|It was in Crystal Amber summer update by Numis:
|eurovision....where do you see this info regarding the additional £600m? Thanks|
|Are we in play? Given Lloyds recent dubious involvement with the FSA/FCA and PRA over its ongoing ECN fiasco, it really is looking highly likely to me at least that NBNK got completely shafted. (IE. an FCA director being an EX Lloyds director of risk, PRA showing recent incompetence by releasing false market sensitive information, etc.
37 odd pence currently held in cash. From majority activist shareholders 2014 update:
The manager notes that if NBNK is able to demonstrate that there was
misrepresentation by Lloyds Bank in the sale process, NBNK may seek to recover not only the £20m but up to an additional £600m (1,110p per share) of lost profit which it was denied as a result of a potentially flawed sale process.|
|CRS upped their stake again last week and we've had trade today. Its all getting a bit too much for me ;)|
|Few trades in the last couple of days.
Mcap lower than cash in the bank again.
Lord McFall to become Atoms senior director (was previously director of NBNK).
New bank being lined up to start next year... a possibility for NBNK to get involved?
Answers on the back of a postcard please.
|From CRS's finals today:
NBNK Investments PLC ("NBNK")
NBNK listed in 2010 raising GBP50 million from a solid list of institutional investors. Its aim was to build, through acquisition, a new UK retail bank.
In 2011, in "Project Verde", NBNK competed against the Co-op Bank to acquire 631 Lloyds TSB, formerly Cheltenham & Gloucester, branches which Lloyds was obliged to sell on competition grounds. As has since become well known, the Co-op was undercapitalised and had serious operational failures, yet in July 2012 Lloyds agreed to sell those assets for GBP350 million upfront and up to an additional GBP400 million based on performance. The Co-op failed to complete due to its weaknesses and it withdrew in April 2013. To fulfil its obligation to dispose of the Project Verde assets, Lloyds went ahead with plans to float the business, culminating in the recent GBP1.5 billion IPO of TSB Bank.
Having been unsuccessful in its attempt to acquire banking assets, NBNK's directors initially decided in mid-2012 to take steps to wind up the Company. However, during the second half of 2012, a proposition was made by funds within the WL Ross & Co Group to inject GBP8 million of new capital into the Company, which would enable it to continue in existence as a cash shell, to take advantage of any further acquisition opportunities that might arise in the financial services sector. Net cash on the balance sheet stands at GBP20.1 million, or 37p per share. NBNK's operations have been scaled back and costs reduced to a minimum, and the cash burn is GBP200,000 per annum.
The Fund first invested in June 2013 and has engaged with the current Board of NBNK and with founding director and ex-chairman, Lord Levene, and is supportive of the Board. According to various media reports Lord Levene has said he was told by former Bank of England Governor Mervyn King that Lloyds' decision to sell the Project Verde assets to the Co-op was politically motivated. Lord Levene told Parliament's Treasury Select Committee that the Governor had informed him that NBNK's offer would not be accepted at a meeting in May 2012 - a month before the Co-op was identified by Lloyds as the preferred bidder. The Committee is now examining the sale to see whether there was undue political interference and whether NBNK was treated unfairly through the process, ultimately losing out to the GBP1.5 billion TSB float. NBNK is understood to have offered in the region of GBP630 million for the Project Verde assets, spending over GBP24 million in the bid process, or 45p per share.
Crystal Amber obtained a 10.6 per cent stake in NBNK from an institutional investor in exchange for shares in the Fund. We have since continued to build the holding, which now has strategic value and stands at 27.9 per cent. The Fund's cost price per share is below NBNK's net cash and net assets per share.
Crystal Amber continues to engage constructively with NBNK's Chairman, Wilbur Ross, and Director, Lord Brennan, as well as former board members of the company.|