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Real-Time news about Neuropharm (London Stock Exchange): 0 recent articles
|tabber: Well if you look at the huge rise in share price over the past couple of years, along with the results and figures, 260 seems pretty cheap. I'm sure if there were no offer, it would have surpassed that figure all by itself over the next few months anyway. So, I am actually tempted not to sell, but I don't understand what happens if I don't.|
|this_is_me: It looks like the potential bidder will have to pay more than he intended if the share price keeps going up like this.|
|this_is_me: It looks like yesterday's RNS mighht as well not have happened for all the difference it made to the share price, which just followed its recent trend.|
|humphbumph: September 16, 2004
NHP reveals bid approach after shares surge 21%
By Sarah Butler
NHP was forced to reveal it had received a takeover approach for the company after bid speculation had pushed shares in the nursing home and property firm up 21 per cent per cent in a month.
In May, NHP told investors that it was planning to dispose of Highfield Care, its nursing home operation, and a deal was expected to be announced with the group's full-year results in December.
However, the new approach, revealed last night, is for the whole company, which also leases care homes to third parties, at a "slight premium to the current share price". Yesterday shares rose 6½p or 3 per cent to 238½p valuing the company at £484 million.
NHP's board emphasised yesterday that discussions with the potential bidder were at a "preliminary stage" and that there was no certainty that an offer would be made.
Last night it was unclear who the interested party might be, but NHP held abortive bid talks with REIT Asset Management and Morgan Stanley in 2001. Some observers believe one of them may have returned.
Rumours of a bid for the company and a "buy" note from Merrill Lynch, the bank, have both helped to lift the stock in the past month.
Prospects for the company's future were also seen to have improved because local authorities, who pay the fees of most of the group's clients, are having to raise the amount they pay for care because of a shortage of beds.
In May NHP appointed NM Rothschild, the merchant bank, to find a buyer for Highfield Care which has 5,900 beds in its homes.
Run as an independent business, Highfield provided 72 per cent of the company's £172 million turnover last year, although it made a small loss.
At the time, the company said that any agreement would probably take the form of a management buyout backed by private equity.
NHP has been nursed back to health by Bill Colvin, chief executive, after almost going out of business in 2000.
The group began running its own care homes when a significant number of third-party operators, with which it had contracts, went into administration, sending NHP to the brink of financial ruin.|
|this_is_me: This is the reason for the saying 'buy on the rumour, sell on the facts'
Continuing good progress - the share price will soon be on the up again.|
|tabber: Long term trend will still be up for this company IMHO. They went through a very bad patch, have sorted the problems, and hence the gradual and definite recovery in share price, and market confidence. Will start paying a divi pretty soon too, which should boost it's share price. I'm in from 38p, so i'm not particularly concerned by the drop yet.|
|wirralowl: I've been tracking these but haven't bought mainly because of the price rise. I'm not tempted by the growing gap between rights and current price, in fact quite the opposite, because at this price, current holders will now be able to sell their new rights shares for an instant profit. I fear the size of the potential profit will now mean quite a few may do this, and drag the price lower than the current diluted price after issue, as happened with one of my shares (EDG) in a recent 3 for 8 rights issue. DYS however which I was also tracking, held firm.
I should point out that I have had an appalling record with shares I've held or been watching that announcing rights issues, and basically whatever I expect, the share price does the opposite, so you will probably be alright
zaxx99 - I've read and respected your posts on BMU - how do you feel it will pan out ? Are you expecting an xr fall ?
Good luck all holders,
|red army: I cannot understand why MORE people are not buying as the record date is the 6th June and the issue price is 62p with a current share price of 91p (and rising). If you need an ISA for this year then I can only suggest that you buy why stock last. Even taking into account a degree of dilution it is well worth it IMHO. Don't use all of the £7K allowance as you will need some of it to take advantage of the rights issue profit in a tax free environment.|
|zzaxx99: New shares being issued are 54,777,789. On a 3 for 8 basis, that means that the number of existing shares is 146,074,104. At 81p that gives a current market cap of £118.32m
They're raising £31.86m from the placing, which gives them a market cap of £150.18m on 200,851,893 shares, which gives a share price of ~75p
Dunno how you get to 58p ... oh, hang on, are you not not adding on the capital raised to the market cap? Let's see, that would give £118.32m / 200,851,893 shares and ... 58.9p. Et voila!
(Actually, if you think about it, 58p couldn't possibly be right - the diluted price can't be less than the weighted average of the placing price and the current price - so in this case, couldn't have been below 62p, even if they'd placed 54 trillion shares rather than 54 million)|
|klal: Just happened to glance through an old issue of Investors Chronicle (Dec 2001) while waiting at the surgery - their recommendation on NHP at that time was a Sell. How wrong they have been. Never had any respect for IC's views before. Looking at NHP's share price today, I can only conclude I was absolutely right (about the uselessness of IC's recommendations).
It always pays to do your own research.
Neuropharm share price data is direct from the London Stock Exchange