New Star Asset Management Share Discussion Threads

[chrysippus] 11/1/2009 14:10

Thanks for the reply wattzy - so they sit in a portfolio effectively suspended during the delist period?... Does this period get specified at delisting or is it open-ended? I am up on these at the moment and trying to work out the exit...

[chrysippus] 11/1/2009 14:01

...OK, they have the same value but if they are delisted, can the shares be sold, and is the process the same?... sorry for the questions, grateful for any replies.

[fairdeal2008] 11/1/2009 13:32

M&C I mean the terms of any acquisition deal, not the restructuring.

[mercier et camier] 11/1/2009 13:28

If the company is bought they would still have the same value as if the shares were listed. Perhaps even more as you would definitely get the bid price.

[chrysippus] 11/1/2009 13:21

There has been a lot of mentions of the potential for delisting this share - what would happen to PI's shareholding if this happened?

[mercier et camier] 11/1/2009 13:18

Fairdeal2008 - 11 Jan'09 - 13:13 - 962 of 962

"That's where the confusion comes from M&C the terms of any deal are not available to any of us yet."

With respect Fairdeal2008 the terms are available to everybody as laid out in the restructuring proposals dated 3rd December 2008.

must dash

[fairdeal2008] 11/1/2009 13:13

That's where the confusion comes from M&C the terms of any deal are not available to any of us yet.

At the moment the reorganisation involves the banks owning 75% of the new ords and existing shareholders with 25%. Then the banks also have £95mn in 'convertibles preference shares' due for repayment or conversion I think 2013.

The deal that was muted a few weeks ago was at £200mn. This presumably would mean:

Buyout of ords say 100mn
Buyout or maintenance of prefs 95mn

In this scenario the banks would get 75 mn from the ords, 95mn from the prefs and perhaps even the 30mn still in the bank. £190mn against debts of 240mn. Not bad really. Ordinary shareholders would get around 9p per share (approx).

If the deal was 100mn total then the banks would pick up 75% or 75mn, possibly the cash at 30mn so 105mn against 240mn debt. Other shareholders would still get 9p a share but this is not a very good deal for the banks and I dont think they would go with it. Rather de-list and wait for a deferred relisting or sale when the market and the business improves.

There could be other scenarios and bankers are involved so its always tricky to judge.

imho

[mercier et camier] 11/1/2009 13:03

I have no idea where you guys are getting your ridiculous valuation figures from.
The bids being placed on the table are what is being offered to the banks not what is being offered to you.

There is to be a 95% dilution of shareholders equity to clear the debts owed to the banks. So if a bid arrives for £115m as reported in the national press private shareholders equity in NSAM should be about £5.75m (£115m - 95%). The current market cap is £8m. So even at 2.8p the shares are almost 50% overvalued if NSAM is sold for £115m.

Now there may be a slight rise tomorrow based on the weekend press but don't forget the shares are to be delisted shortly. If it rises tomorrow take advantage and sell!!.

[fairdeal2008] 11/1/2009 11:05

Well you don't know if you are lucky until you find out what the proposals are. If there are competing bids that's good, but remember the banks are in control ands by definition, will look after their interests primarily. Although the one hook for me is that a lot of existing NSAM shares are help by management and staff and it would do the acquirer no favours to shaft those holders and loose the loyalty of staff. So they may have to toss a breadcrumb our way as a result.

Ps have added this to the UPS thread (but noted that 1delboy found this news first last night, good find).

[ohsod1t] 11/1/2009 10:57

So being new to this, and getting lucky at buying a few of these, do I hold onto them no matter where the price goes on Monday? Can we assume that the price should continue to rise for a few days?

[wardy3] 11/1/2009 10:40

Momentum day traders will move in on this tomorrow hoping for more bids as the week progresses,mmmmmmmmm could be a very good week for all holders.

[fairdeal2008] 11/1/2009 10:09

I suppose that the company will now have to issue an RNS to address speculation in the press and guess that will be first thing on Monday. This is still in the balance imho and we need to see details of any proposed transactions (although what they will tell us who knows)..

[jamie62] 11/1/2009 10:03

really need the other interested parties to come forward and declare themsleves. i feel that this is only the start of it.

[fairdeal2008] 11/1/2009 09:40

On assume that the £100 mn would be to buy the ordinary share capital (as expanded to include new bank holdings). On top of this is the new planned pref shares (£95mn) and it is how this treated that matters.

But assuming the two are separate in this transaction the total is around £195mn in line with earlier projections and around 9p per share.

imho

Edit: I see its also in the times now:

[onasis] 11/1/2009 09:36

I strongly believe that next months share price has nothing to do with the size of the bid, but only with the size of the bidder.
For example: If a highly respected company wins the battle, even if the bid is one pound the share price will fly.IMHO. Please DYOR.

[onasis] 11/1/2009 09:29

The bid price is not the point. The good news is that someone is buying the company and return it to "business as usual" . The share price will follow and will reach previous highs in years to come but for now, as Blue Planet has commented, the share price should be 20p minimum.

[mister md] 11/1/2009 09:15

pre-christmas report: " A deal may value the group at around 200 million pounds ($297.5 million),
or about 8 pence per share, said Jason Streets at Evolution Securities"

so the 100m reported now would equate to approx 4p per share ??? guess rival approaches could send this higher

so starting point of 4p on Monday ?

[wardy3] 11/1/2009 08:50

Good news for all holders wonder what price it will open at tomorrow, holding a few sold some though late last week DAMN.

[mercier et camier] 11/1/2009 01:32

Looks like Shroders are there first.

[fairdeal2008] 10/1/2009 23:16

Seems like there are rival bidders - could get interesting...

[fairdeal2008] 10/1/2009 23:07

1DB you might want to stick that on the UPS thread - it could put you top this week...

[fairdeal2008] 10/1/2009 22:55

Wonder how that will play out. Never know until the news is properly announced especially when bankers are involved!!

If it is against the new equity (about 1.1billion shares in total I think) its about £0.09 a share...

[1delboy] 10/1/2009 22:53

that should do the share price some wonders come monday!