Sinclair Pharma Share Discussion Threads

[glynedwards] 13/11/2018 11:44

Final chapter. Cash has arrived. Surprisingly, at the same time in my Barclays account as the others. Whatever next? Are Barclays becoming competent?

[stalbans66] 05/11/2018 16:07

Likewise me.

[glynedwards] 05/11/2018 13:20

Who held on to get the payment from Huadong? Me. Who sold in the market?

Been an interesting ride. Thanks for all the posts and comments.

[dealit] 24/10/2018 20:25

Thanks steeplejack.

[steeplejack] 24/10/2018 18:52

Probably by around 10 Nov.I've sold in the market at 31.9....I want a contract note,easier to identify my capital loss!What a pitiful investment,mind you I've known worse :)

[dealit] 24/10/2018 16:44

Any ideas of when small investors will be issued cash for shares. Early November dates mentioned for various deadlines not sure if these are settlement date for small private investors?

[steeplejack] 24/10/2018 16:14

That's that then....I got a bit overly imaginative

[gobbie100] 23/10/2018 16:23

I agree it has been bizarre one bought today at 32! Who knows what is going on if indeed anything

[steeplejack] 23/10/2018 15:37

Which it probably will be.Yet,I'm still confused by all these recent purchases by hedge funds.It could be a way of parking some cash in uncertain markets I suppose.

[glynedwards] 23/10/2018 14:38

Court and shareholder meetings tomorrow. Let's see what happens. If approved then its all settled.

[steeplejack] 23/10/2018 14:35

Man Group now have 10.8%

[steeplejack] 19/10/2018 18:32

Also,of course,purchasers have to pay stamp duty at 0.2%.There was a purchaser today at 31.8p.They’ll be precious little profit left after costs if one accepts a bid at 32p.

[1nonprophet] 19/10/2018 16:51

I certainly don't disagree with you on your points. I also "know a lot less than some other parties". I think we can both agree that there has been some unusual activity surrounding this takeover in recent days which has appeared to have dried up as of today, Next week will be interesting no doubt. I will message you at a later date to explain my interest in this company.

[steeplejack] 18/10/2018 16:57

Interesting to see that you’ve joined ADVFN as a free member today and this is your first post.Welcome.

There are inconsistencies in your argument.You say that Tosca is giving up very little in selling up now but then suggest that the hedge funds are attracted by this titchy potential gain which Tosca is happy to pass up.Weiss management has actually been picking up stock since around 30p,so with 12.1% it has more to gain than a fraction of a penny.However,these other hedge fund operators (including Man Group)have according to you been stirred to action for a gain of half a penny.Frankly that’s strange behaviour for such strategic thinkers,masters of the universe.If that’s the case,I’m surprised they’re not swarming round Shire which is selling at a near 10% discount to the value of the Takeda bid.

Do I think that all these hedge funds could act in concert to cajole Huadong into paying a higher price.Of course I think it’s possible,have you never worked in the City.It should be remenbered that this bid requires 75% to pass.Yes,there’;s the risk that Huadong might pull out altogether if the bid resolution fails to pass and the shares fall.That’s the one thing that confuses me but that’s because I suspect I know a great deal less than some other parties.

[1nonprophet] 18/10/2018 16:35

I think you are reading more into all this hedge fund activity than there really is. Tosca exiting now is not an unusual move given the fact that they just guaranteed their price close to the buyout number. A small price to give up to eliminate the risk and move on with their money. Why would all these other funds come in at the late stage lapping up all these shares at a price just above 31 when they had a chance to buy it in the 20's or lower just a few months ago. Do you really think they are all working together to kill a deal hoping for a higher price from Huadong? That would require one hell of a coordinated effort for an outcome that could also result in the share price plummeting back to the June prices. My hunch is that these are all short term arbitrage plays these funds are making to gain a small % in a very short timeframe. Just my opinion as I am not a prophet.

[steeplejack] 18/10/2018 14:58

Yes I think 40p would be acceptable.What is pretty evident is that the management are recommending a level of bid that suits them given the negotiated future incentive package.They seem to have forgotten that this is NOT their company.The management here have failed miserably to deliver over many years and have negotiated a nice little earner to deliver the sort of returns that they should have delivered all along.I would have thought another bidder might be in the wings but I reckon it's more likely that Huadong are going to have to sweeten the package.

[gobbie100] 18/10/2018 14:18

Steeple, I think I agree with you. The question is whether there is already a new bidder in the background who hasn't shown their hand yet or whether this is purely leverage to force a higher bid from the Chinese. If this is just leverage I would suspect a sweetening of the bid of 20-25% so a sale price close to 40p. All IMHO

[steeplejack] 18/10/2018 13:34

You can rest assured that the likes of Man Group,Jeffries,Weiss Management etc didn't buy this stock to assent to a 32p cash offer.

[steeplejack] 18/10/2018 10:29

LMR Partners (hedge fund)now have 2% of the equity.interestingly,they have an interest in Shire,this outfit are clearly alert to risk arbitrage opportunities.Anyway,numerous hedge funds now hold a good chunk of Sinclair stock.I imagine Spooner and the other selected clutch of potential beneficiaries of the incentive plan (£25m over the next 5 years)must be wondering if the 32p cash bid will prove successful.

[steeplejack] 18/10/2018 08:34

Indeed.All up in the air.So if the bid fails,does the price fall given uncertainty about whether Huadong might walk away or is that countered by the possibility they might increase their bid or another bidder emerges.The mystery is why Tosca would sell now.It could be that they've received calls for margin.I guess it's common knowledge why they've sold in the City.Be interesting to watch the Weiss management holding news.

[gobbie100] 18/10/2018 08:13

Tosca down to zero now. Looks likely I think that current bid will now fail I think. Counter bid coming or higher offer? Let’s see what other sales/purchases come today from institutions. Good luck all.

[steeplejack] 17/10/2018 19:04

In a very real sense,if Huadong can win Sinclair with a low ball bid of 32p,there's that much more money available to fund the management incentive plan.(Mariana Resources received a similarly low ball bid and were keen enough to recommend it to shareholders because they,the management,would be winners under agreed future remuneration plans with the new company).There's something rather inherently questionable about the whole methodology.Greasing the palms of the board works wonders ,and always did I suppose.What surprises me is that such a quality list of shareholders might well go along with this deal and not question,disrupt an inadequate offer.We'll see soon enough.

[dontshoutatonce] 17/10/2018 16:54

Steeplejack, Your 3rd paragraph - quite so. The company is worth more than present offer and, knowing the Chinese they will expect us to refuse the bid. Who makes on offer first time and expects it to sell? Not even the naive English. I'm sure the Chinese will make a better offer if this is refused. It's only a warm up and I hope the board don't give in because they alone will make money. Most of the rest of us won't unless we refuse and wait for a better bid.

[gobbie100] 17/10/2018 16:36

Lots of activity today...... odd?

[steeplejack] 17/10/2018 12:44

I really don’t know.I presume Tosca sold because they want some cash now but they would probably have got the bid proceeds of 32p cash by the end of November anyway.If you take Weiss,Oddo and a few others who have declared interests,you’re getting perilously close to interests that have a combined 25% required to vote the bid down.75% is necessary to pass the bid.If the vote fails,what happens then.Do Huadong up the bid or walk away.Do our management team miss out on their Xmas bonus.

Tosca has sold some 18% of the equity assented to the bid under the”unbinding” letter of Intent.They’ve put the cat amongst the pigeons.I’m presuming that Peel Hunt snaffled that stock to assent to the bid but it’s far from clear.Weiss have upped their stake and GWM Asset Man. have emerged today,perhaps they’ve bought some of that Tosca sale.

I always thought the bid too low and frankly,a board recommendation has been achieved through this highly lucrative management incentive plan.