Rpc Share Discussion Threads

[phillis] 09/2/2017 15:26

Gibson
More shares are going to be issued and the TERP is 980p so you would expect it to be somewhere near
There may be an opportunity to trade the nil paid rights as they are more geared and will move to a greater extent as the market waxes and wanes before 27Feb

[egrid1] 09/2/2017 15:20

My take on why they may have fallen...

Major purchase in US - outside normal European focus, though RPC do have interests in the US, this will effectively treble the size of them, so quite a large increase.

Largest acquisition to date, by some margin, so concerns as to whether RPC can handle integration as readily as they have other acquisitions.

Buying in US dollars, when pound is cheap - though future US dollar earnings will benefit from weak pound.

My personal view is that they have been oversold. Good trading statement with the notification today, opportunity to make savings in raw material costs, provides access to larger customer pool in US that might take other RPC products.

[typo56] 09/2/2017 15:17

Gibson59, that's one for Phillis.

Ask the rest of us the same question tomorrow.

[gibson59] 09/2/2017 15:11

Hi, as a complete newcomer to shares... could some explain why RPC share price has fallen today following this morning's announcement?Thanks!

[phillis] 09/2/2017 15:08

you might indeed be old enough to remember paper shares but you dont seem to have gained much experience in these fairly basic matters

Hey ho!

[miti 1000] 09/2/2017 15:05

Phillis and Esther.....would you like to apologize now or prefer to wait till tomorrow am at 8am when it opens ex-rights?

[typo56] 09/2/2017 15:00

I dare say next time Phillis encounters a rights issue he/she will be bad mouthing anyone who doesn't understand the difference between a record date and an ex-rights date!

[typo56] 09/2/2017 14:58

Ah, it's in the prospectus, now on the RPC site

If you sell or transfer or have sold or otherwise transferred all your ordinary shares of 5 pence each in the capital of the Company (“Ordinary Shares”) (other than ex-rights) held in certificated form before 8.00 a.m. on 10 February 2017 (the “Ex-Rights Date”), please forward this Prospectus together with any renounceable provisional allotment letter (“Provisional Allotment Letter”) that you may receive, duly renounced, as soon as possible to the purchaser or transferee....

[typo56] 09/2/2017 14:44

Dear Phillis,

What do you suppose an ex-rights date means?

Suppose you dealt in physical shares and were a holder up until today, but sold today. Since the record date was 7 Feb it's possible you'll receive a 'Provisional Allotment Letter' detailing the rights entitlement for those shares. Note the word 'Provisional'. Just because you receive the letter does not mean you are the person entitled to the rights. No, because they don't trade ex until tomorrow, you would have to forward the letter (and probably some sort of guidance instructions) to the new owner (you'd probably do this via your broker).

You see, I'm old enough to remember paper shares.

And I gave up work a couple of decades ago. Too much hassle.

[phillis] 09/2/2017 14:31

The rights issue will be on the basis of 1 for 4 held at close of business on the Record Date

Cant you read and comprehend plain english?
Stop waffling!

[shauney2] 09/2/2017 14:25

There was a positive trading update besides the acquisition.

3rd qtr revenues increased significantly and operating profit significantly ahead with currency gains, acquisitions and growth.

The GCS and BPI businesses continued to perform well with acquisition-related synergies in line with expectations, and the Group achieved good cash flow development in the period.

Letica,40% of their sales are from building and construction.So it could be a good purchase if Trump is true to his word.

Also worth noting that they have a trucking division to transport their own goods.A big saving especially if the make other acquisitions in the US down the line.

[typo56] 09/2/2017 14:21

Esther1975, I don't think anyone is disputing that 7th Feb is the record date. That won't interest you unless you're dealing in certificated shares. It's the ex-rights (ex-entitlement) date you need to know. When it that? The record date and ex-rights date are not the same thing and shouldn't be used interchangeably.

If you think they're the same, look at previous rights issues where the ex-rights date has been stated. Why the difference between ex-rights date and record date?

[typo56] 09/2/2017 14:12

miti1000, I think you're right. I'm not sure "index constituent" are the key words though. RPC is already a constituent of the FTSE All-Share index. What matters is the date they include the new shares which, as you say, does look like being Feb 27th+5. This falls after the announcement date of index review changes on 1 Mar, so the new shares will be admitted to the index on 20 Mar.

I wouldn't place a lot of money on it though!

[esther1975] 09/2/2017 14:10

from rns this morning "As the Rights Issue is not conditional upon completion of the Letica Acquisition, the Rights Issue would complete even if the Acquisition does not complete. In the event that the Rights Issue completes, but completion of the Acquisition does not take place, the Company intends that the net proceeds of the Rights Issue that would otherwise have been used to satisfy part of the consideration payable on completion of the Acquisition will be used for general corporate purposes and (where possible) acquisitions that fulfil the Company's clear strategic objectives." Therefore no guarantee that acquisition will go ahead."The Rights Issue is being made to all holders of ordinary shares on the register of members of the Company at the close of business on the record date". That's the 7th Feb

[miti 1000] 09/2/2017 13:38

Typo,

Key words are ''index constituent''. So T+5 after the 27th will apply imo.

Happy to be wrong though but having experienced this previously from a stock hopefully entering the Ftse 250 but failing on a capital raise , I'd imagine it still applies.

[esther1975] 09/2/2017 13:25

Looks good research phipps. The record date is the key which is the 7th Feb. If your buying now then you won't be entitled to rights offer. That's my take on it.

[typo56] 09/2/2017 13:19

FWIW, FTSE rules say this regarding share in issue updates:-

"If accumulated changes in the number of shares in issue add up to 10% or greater....they are implemented between quarters"

"If a corporate action is applied to an index constituent which involves a change in the number of shares, the change in shares will be applied simultaneously with the corporate action."

"In the event that T+5 falls after the announcement date of index review changes but before the index review effective date, the implementation of the share update will be delayed to coincide with the index review effective date."

So looks like new shares included either 27 Feb or 20 Mar, depending on how they view T+5. Would still need a share price of about 1040p or over IMO to make FTSE100.

[miti 1000] 09/2/2017 13:14

6th march, I'd guess ie. past the review date.

[typo56] 09/2/2017 13:11

miti 1000, good point about the T+5, so new shares perhaps not included by FTSE until 20 Mar? There again, FTSE can surprise!

[makinbuks] 09/2/2017 13:05

The synergies look like a really low figure for an acquisition of this size. Also this is by far the largest acquisition they have made which increases the execution risk. Looks like the strategy is to leave well alone, often that approach leads to disappointment and eventual full integration. I'm a bit concerned

[miti 1000] 09/2/2017 13:01

cheshire pete,

My apologies. That fool , Phillis, spouting nonsense worked me up.

Fwiw, I agree , with you.This is good news and RPC will make it to ftse 100 in June imo failing any sharp correction in the market.

[phillis] 09/2/2017 12:57

google it chaps or do you need spoonfeeding?
e.g

[cheshire pete] 09/2/2017 12:56

Miti 1000,
Go easy on me Miti, I'm just a humble man from the bogs. I multiplied the new shares to be issued 82,954,687 by 5 then by £10.03 and divided by 1000000 to get a revised M Cap of £4160m. If this is wrong, I apologise. I didn't say that they would go straight in, rather I put it in the context of their 2020 strategy. I can see them outpacing the other companies currently around the 100 mark and the market may recognize this.

[tonysss13] 09/2/2017 12:55

i've set a reminder to look in tomorrow to see Phillis eat humble pie