Uniq Plc Share Discussion Threads

[stewjames] 17/2/2011 15:32

Is the current share price accounting for the dilution ?

If markets are at all efficient, then (broadly) yes.

If we assume the restructuring is almost certain to happen (it is, IMO), then buying today is effectively the same as buying into the restructured company at a valuation roughly 10 times the currently stated market cap.

[peawacks] 17/2/2011 15:23

So the pension fund will be given 1.03 billion shares, which is approx 90% of the company. We have the remaining 114.7 million shares (10%). Is the current share price accounting for the dilution ? That's the risk you take by holding.

[stewjames] 17/2/2011 15:17

Current shareholders will go from owning 100% of the company to owning 10%. That is clearly dilution.

To put it another way, in order for your shareholding to have the same value after the restructuring as it does today, the new market cap will have to be 118M.

[purplebox] 17/2/2011 15:14

It's all in the 'Circular' - look here:-



'SCHEME OF ARRANGEMENT' - Page 47

The effective dilution is 90.2% - so the real question is all tied up with the value of the company when freed of it's pension liabilities.

Certainly more than the current market cap - but if the shareholders approve the deal they will only be entitled to 9.8% of the company.

For example, if the company is worth £100 million then after the restructuring the current shares value should only consider 9.8% of that value.

How much will the company be worth after the deal - not a published figure as people can only guess. The knowledge required to make a good guess is beyond the scope of PI's IMO.

However - you can be sure that the Pension Fund has a target figure in mind and that the Pensions Regulator has also done it's sums before allowing the deal to proceed.

Do your own research and read the Circular.

[warranty] 17/2/2011 15:05

My understanding is that there is no dilution just that effectively 90% of the shares pass to the Pension Fund in return for them removing the debt to the company which should result in a re-valuation of the shares.

[peawacks] 17/2/2011 14:37

Does that mean that the present shareholding is equivalent to 9.8 % of issued shares ? Hence a huge dilution ?

[propane] 17/2/2011 14:33

johnyee, that's how i see it also.

[johnyee 7] 17/2/2011 14:27

brando69,can't find anything about dilution,just says 90.2% of shares go to pension fund and rest left to share holders.

[olly2] 17/2/2011 13:15

topped up at 10.75,so hopefully back up.would be nice to be kept up to date with l2,max bid/offer.thanks........

[equitydealer007] 17/2/2011 12:47

got @ 6.68 out just over 11. climbed back in for a smaller amount @ 10.15.

So where is it going now??? gla

[brando69] 17/2/2011 12:34

but you have to factor in dilution once restructured

[johnyee 7] 17/2/2011 12:31

this was over 40p 2 years ago with all the debt,debts gone so should be a lot higher if it's voted through.

[ayesha4] 17/2/2011 11:40

L2 improving

[trebor22] 17/2/2011 11:39

Buying again on UNIQ

[ihavenoclue] 17/2/2011 11:30

OLLY ... share price can stay the same but the bid can vary ... it's called a spread

[olly2] 17/2/2011 11:16

bid at 10.15,chart above not keeping up.....

[brando69] 17/2/2011 10:29

daylight dawned yesterday

[billybankrupt] 17/2/2011 10:25

profit taking or daylight dawning?

[stevi111] 17/2/2011 10:24

About to go sub 10p

[olly2] 17/2/2011 10:22

just keeping an eye.wonder if its worth adding.bought a few at 6.17 last thursday.

[brando69] 17/2/2011 10:21

but i think it will find support around current levels as new wave of buyers come in

[brando69] 17/2/2011 10:20

rose 75% in a day

a sharp retrace to be expected i guess

[olly2] 17/2/2011 10:16

how far they going to drop this?

[hungry123] 17/2/2011 08:19

And possibly post on the HHR thread ??? This is UNIQ.