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MWB Mwb Group

4.875
0.00 (0.00%)
23 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Mwb Group LSE:MWB London Ordinary Share GB00B2PF7L39 UNITS (COMPR 1 ORD & 20 B SHS)
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 4.875 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
  -
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 4.875 GBX

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Date Time Title Posts
06/5/201314:11Marylebone Warwick Balfour496
18/9/201122:27Sack the chairman, senior mgt, and board17
11/9/200908:44Recovery play?190
27/4/200920:03Due a recovery?10
13/4/200709:32MWB Gonna Jump up, due to MBE rocketing34

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Posted at 19/3/2013 10:09 by scburbs
The administrators appear to have done their best to get the lowest possible price. The price looks to be between £180-200m vs a book value at 31 December 2012 of £330m (40-45% lower than book). I am suspicious that the price has been determined to get repayment for the lenders rather than seeking the best price.

"KSL buys boutique hotel chains
19-03-2013 | 07:00 | Print
Denver-based private equity group KSL has bought boutique UK hotel chains Malmaison and Hotel du Vin.

It is thought to have paid close to £200m. KSL will look to see how it can expand both chains in the UK and overseas. The two hotel brands have 27 properties as part of the Malmaison Group which was unaffected by the administration of parent company MWB Group in November. KSL owns the Belfry golf resort in Warwickshire

19/03/13 Financial Times 21
Times 31, 34, 39
Daily Telegraph B4"
Posted at 20/2/2013 09:18 by scburbs
Great work by Pyhrro on the MBE sale, forcing the price up to over £1/share. If the incompetents previously in charge of MWB had sold MBE when the original offer came in then MWB would not be suspended today IMV.

MBE was in the MWB books at £4m, being its share of assets. Therefore, the sale enhances the MWB NAV by c. £45m.

This leaves the administrators a target of losing nearly £160m on the hotel business (from the last reported position, admittedly 31 December 2011) to ensure that shareholders get nothing!

I am not a great believer in administrators doing a good job, but here is clearly a case where they should realise some value for shareholders. Either that or they will have done a seriously bad job or the hotel valuations have been widely misstated.
Posted at 14/2/2013 18:06 by markt
Wow, looks like the gloves are coming off now for MWB and MBE !!

ref. recent RNSs at MBE

"allegations against MWBPL, Business Exchange and the Directors"

"To what extent could the allegations against the current directors of Business Exchange disrupt and distract Business Exchange's management?

3. On what basis has the BX Board concluded that the nature of the Petition, and its allegations against MWBPL, Business Exchange and the Directors, do not need to be more fully disclosed to all market participants?"
Posted at 16/11/2012 17:44 by markt
Loan Notes
BTW...imho the loan note holders wont lose anything....or much....since they have already had their investment returned to them via the interest payments over a good number of years at around 10%

and in a wind up.... loan note holders would get paid before shareholders get a penny...
----

Hopefully the directors were/are in fact still large shareholders....and hadnt lent the shares to say IG Index....to then be sold short by their wives or some off shore company .....giving an overall result of 0 loss, or even a gain if you short sell more shares than you held.

Interesting, over at FIF, you could also have made a lot of money by shorting a company where an MWB non-exec. was on the board.....after it made a large acquisition at a ridiculously high price (imho) (orders of magnitude higher than the norm for the sector) saddling it with loads of debts
..and in that deal the chairman Lord Saatchi made millions, since he bailed out , and he benefitted by the acquisition price ratio being very high (imho). Not so long after....he left the company.

Perhaps the time to short MWB was when it paid out 3 pounds per share submitted for cancellation. (and maybe if that payment had not happened, would MWB still be afloat ?)

(MWB, MBE. Seemed intent on spending money...and more money (eg. Liberty, and more hotels and more refurbishments). Whether it made a return or a return higher than the cost of the money. Not sure if anyone was monitoring that !)
Posted at 16/11/2012 17:06 by markt
Each is a limited company, that produces its own accounts.
If that ltd company is viable then it keeps operating .......

but !!

I would assume that the creditors to the group will want to get their loans paid back......and if MWB group has no cash to do that...then the creditors will ask, "well what other assetts have you got ?"

and the creditors will see the subsidiaries.....which have a value of X.

Then I assume they have to negiotate.
At the end of the day I assume that the creditors have the right to claim the subsidiaries ...or some related transaction.

The shares held by MWB group in MBE are also an assett......so the creditors may ask to be given those shares as part of a settlement.
----

imo the administrators of MWB can also control MBE if they want, MWB owns 75% of MBE

but I would assume that they would allow the MBE bod to keep running MBE, but with an instruction that any major decisions have to be approved first by the MWB administrators. For example the administrators would, imo, not allow MBE to take on new debts.
---

The administrators of MWB will I assume be controlling the bods of the hotel subsidiaries as well.

but if no instruction from the administrator ...then business as usual..

---
The accounts seem to indicate I think, that MWB assetts are higher than MWB debts....

but in the administration process we will imo learn more about the current market value of those assetts !!.....imho will be lower than the values given in the annual accounts...

----

I'm not an accountant or company lawyer.....I'm just making common senses guesses...
Posted at 22/5/2012 17:06 by markt
"and we expect to embark shortly on a fund raising process aimed at raising new capital to strengthen the Group's financial position"

Hence the question....

was the MWB BOD legally and intentionally negligent in making new investments over the months running up to that disclosure ?.....a new hotel in Scotland I recall, and perhaps other investments...

-----

In various European countries with debt problems....it is surfacing that public money has been spent on stupid and crazy things.....like airports in bad locations that now have no airplanes using them.....

and

that business owners made large profits in the process, often with backhanders to politicians that awarded the contracts...(ie. that money was intentionally mispent because the top people involved would get rich as part of the process)


I wonder if any investigating is needed at MWB to see if anything similar has been occurring.
-----

As a PS.....if any MWB directors or any related party or friend have large short positions open...such as via offshore tax havens with strict secrecy laws (Switzerland, Cayman Islands), and cover companies, so no one can find out...then they could/would be making large amounts of money from the fall of the MWB share price.

Most of the money of the Marshalls (David Marshall is a non-exec) looks to be held in Trust Funds. Perhaps any trust funds where DM is not a trustee can legally take short positions since not under DM control and perhaps would not need to report. There are directors on the LFI BOD from a Swiss bank. And the Marshalls have reported links to Luxembourg and to Virgin islands and Guernsey.
Of course they would not do anything not allowed, but you can see that if anyone wanted to bend the rules or push them to the limit or make personal gain....that it would be very easy to do imo, and no one would ever know.

(LFI already dances around the regulations imo.....eg. no disclosure in LFI accounts of payments made to a son as director of subsidiary company....and imo they don't comply with the related party disclosure rules or at least the spirit of the rules, eg. payments from MWB, CRE, NBI, FIF are not disclosed in LFI/WSE accounts).
Good old London markets !....very murky imo !!....
Posted at 23/1/2012 15:27 by markt
but share price down 8% in response...as continues downward slide

Directors claimed policy is same as in 2002-2005...to return assetts to shareholders...and reduce gearing...

But imho they haven't fully followed that policy.....various new ventures started..

should they be taking on new hotels/ventures ??

Massive assetts, massive debt....tiny share price....I thought the plan was to reduce the assetts and hence the debt....so that some NAV would be produced...to increase the share price...and cheer up shareholders...

Share price has gone from 50p to 11-12p in last few months.....and down slope is quite steep !
Posted at 30/10/2011 15:02 by williamgtheobald
MWB: a Mess Without Bounds?

By Stephen Wilmot, 28 October 2011

The boardroom saga at MWB never seems to end. The property company got in a tangle this spring when it tried to buy out the minority shareholders in its Business Exchange subsidiary. Now the storm has moved to its other subsidiary, hotels group Malmaison, due to a controversial refinancing. But the Malmaison affair also has the potential to derail the bid for Business Exchange.

It's a convoluted tale, so let's start with the basics. MWB Group is a property holding company, which like many of its peers emerged from the property crash with too much debt. It used to have three subsidiaries, but sold one - the iconic Liberty department store - for £42m last year to satisfy the banks.

That left it with a 72 per cent stake in Business Exchange, a listed provider of serviced offices, and an 82.5 per cent stake in the Malmaison and Hotel du Vin hotel chains. And still loads of debt.

It is this messy corporate structure that has proved so problematic. We reported on its attempts to buy the rest of Business Exchange on the cheap here. The short version is that MWB was eventually forced by Pyrrho, an activist private equity fund with an 8 per cent stake in Business Exchange, to raise its offer from 50p per share to 80p per share.

That seemed like a victory for small shareholders at the time, and Business Exchange's shares jumped to near 80p on the news. But MWB never actually formalised the offer, which was mainly made in stock, and its own share price has since plummeted. So the deal will have to be renegotiated yet again - if, that is, a formal offer is tabled at all. MWB has until 14 November to make clear its intentions under the new Takeover Code. Given the rumpus that has since erupted over at Malmaison, not to mention in the stock market, we wouldn't pin any hopes on it.

Malmaison (including Hotel du Vin) basically consisted of a £437m portfolio of hotels and a £283m RBS loan held against it. That loan was due to expire at the end of 2011, and so on 29 September MWB announced a refinancing deal. It has agreed to pay back £100m by selling off (and leasing back) five of its most valuable hotels, in return for which the bank has agreed to extend the remaining £180m or so of the loan by three years.

Richard Balfour-Lynn, MWB's chief executive, claims this puts the group on a robust financial footing, leaving it free to pursue long-term strategic ambitions such as international expansion.

But Pyrrho, which owns 24 per cent of MWB as well as its stake in Business Exchange, disagrees. In a long open letter to MWB's board on 17 October, it took strident objection to just about all the terms of the refinancing. Above all, it objected to the treatment of Malmaison's minority shareholder, RBSM Investments, a private equity arm of RBS, whose annual return on its stake will more than triple from 5 per cent to 16.25 per cent. Pyrrho's director, Paul Cummins, thinks RBS used its nepotistic position as lender to extract a disproportionately generous return for RBSM.

Actually, it's not just the details Pyrrho objects to – it's the whole strategy. Mr Cummins, who is based in the Far East, thinks the debt should have been reduced not by a fire-sale of the best assets in a weak market, but by asking shareholders for more equity.

Mr Balfour-Lynn dismisses Pyrrho's concerns as the hobby horse of a lone shareholder that "doesn't recognise how difficult the banking world has become". He points out that the deal secured the necessary vote of approval at this month's EGM – and even before that he had to get irrevocable commitments of support from 51 per cent of shareholders.

Against the background of this spat, it's clear that even without the refinancing problems Malmaison – effectively a play on UK business and consumer spending – is in a tricky spot. Occupancy fell from 79 per cent on average in 2009 to 77 per cent in the 18 months to 30 June. Cash profits were down 6.8 per cent to £25.9m for the year to 30 June. The company even resorted to blaming bad winter weather, the ash cloud and the Royal Wedding.

The value of the hotel portfolio was consequently marked down 9.6 per cent. But the recent sale-and-leaseback deals suggest even those valuations may be optimistic: Malmaison received £103m for five hotels with a book value at 30 June of £151m.

True, the 70-year leases MWB negotiated with the buyers hold some value, which will not be quantified in the books until the year-end. But even if the leases do make up for the apparent £48m discount to book value at which the hotels were sold, they are an intangible asset. Malmaison claims it has retained asset backing of 77 per cent of the portfolio, by number. But counting the number of hotels this is pretty disingenuous – actually it has sold off 34 per cent by value (which is what counts). Little wonder RBS could still call the shots in the refinancing, despite the £100m reduction in debt.

Is it coincidence that Malmaison's long-standing chief executive, Robert Cook, announced his departure a fortnight ago? Mr Balfour-Lynn vigorously denies acrimony - he even penned a denial to the stock exchange this month in response to a piece in . The two may well not have "fallen out", but the more pertinent question is whether Mr Cook would now be looking for a "fresh challenge", as Mr Balfour-Lynn puts it, if his company's strategy had not been overwhelmed by debt issues.

So what are shareholders to do? Business Exchange shares are now worth 61.5p – below MWB's 80p offer back in July, but still well above the 45.5p level before the initial bid. It's always tough calling takeover situations, but we would suggest shareholders get out while they still can. At MWB's current share price, the July bid is now only worth 58p, and there's a good chance it won't be made formally at all.

After all, MWB's shares have lost a quarter of their value this month and 41 per cent since August. They're now trading at 26p, a level not seen since early 2009, when they bottomed out at 21.5p. That reflects both the debt mess and pretty gloomy operating figures published a week ago. MWB announced a £44.9m pre-tax loss for the 18-month period to 30 June, with shareholders' equity down 21 per cent to £81.2m, or 49.5p a share.

That's almost double the share price, so the valuation discount is wide. Existing shareholders, poor souls, may want to wait for a trading bounce before selling out. But they should sell out when they can: with exposure to fairly cyclical sectors in the UK economy, and only three years until the debts are again due, MWB will struggle to turn the page. The whole sorry saga remains a vivid reminder of the foolishness of the property boom and the unfortunate link between real estate and the banking crisis.
Posted at 13/6/2011 21:15 by knowing
Withdrawal of Possible Offer
TIDMRGU TIDMMBE

RNS Number : 3647I

Regus PLC

13 June 2011

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES OF AMERICA OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

REGUS PLC (SOCIETE ANONYME)

("Regus")

Withdrawal of possible offer for MWB Business Exchange plc ("MBE")

Despite Regus's all-cash possible offer of 92.36 pence per share for MBE (the "Indicative Offer" or "Regus's Indicative Offer") representing a 71.3 per cent. premium over the offer made by MWB Group Holdings plc ("MWB") for MBE on 28 April 2011 ("MWB's Offer") (as at close of business on 10 June 2011), and Regus announcing on 10 June 2011 that it had dropped all of the reservations to its Indicative Offer price, whilst the Indicative Offer remained subject to confirmatory due diligence and a recommendation from the independent committee of MBE (the "Independent Committee"), Regus confirms that neither MWB nor the Independent Committee have sought to engage in meaningful discussions with Regus in relation to Regus's superior Indicative Offer. Accordingly, Regus has no choice but to withdraw its Indicative Offer for MBE and therefore announces that it does not intend to make an offer for MBE.

The refusal of MWB and the Independent Committee to engage has been despite the announcement today by Pyrrho Investment Limited ("Pyrrho"), the largest independent shareholder of MWB and MBE, that it will vote against the resolution to approve the scheme of arrangement to implement MWB's Offer (the "MWB Scheme"), which will effectively mean that the MWB Scheme cannot succeed.

Background

On 7 June 2011, Regus announced that unless (i) the Independent Committee or the board of MWB entered into discussions with Regus by 17.00 (BST) today and (ii) because the meetings had already been called, either the Independent Committee or MWB or MBE confirmed publicly that they would be seeking an adjournment of the shareholder meetings required to implement the MWB Offer, Regus would withdraw its Indicative Offer.

On 10 June 2011, Regus reaffirmed its commitment to and the seriousness of its Indicative Offer. As at the close of business on 10 June 2011, Regus's all cash Indicative Offer of 92.36 pence per MBE share represented a 71.3 per cent. premium over MWB's Offer. Regus also confirmed in that announcement that neither the Independent Committee nor the MWB board nor their respective advisers had engaged in any meaningful way with Regus to discuss the Offer.

Regus also announced on 10 June 2011 that it was improving its Indicative Offer by dropping all previously announced reservations to its Indicative Offer price. This was to reaffirm to minority shareholders of MBE, as well as to MWB and the Independent Committee, the seriousness and commitment of Regus to the Indicative Offer.

Regus also clarified that its requirement for confirmatory due diligence was a direct result of the introduction of additional information set out in MWB's announcement on 27 May 2011 and in the scheme document posted to MBE shareholders relating to inter-company guarantees and possible charges which might be introduced between MWB and MBE.

Despite the improvement in Regus's Indicative Offer and the premium of 71.3 per cent. it represents over the MWB Offer (as at close of business on 10 June 2011), neither MWB nor the Independent Committee have sought to engage with Regus. This refusal to engage has been despite Pyrrho, the largest independent shareholder in both MWB and MBE, writing to the board of MBE on 7 June 2011 to express its deep concern with decisions made by the board of MBE and announcing earlier today that it intends to vote against the resolution to approve the scheme of arrangement to implement MWB's Offer.

In the face of the continued refusal of the Independent Committee and the MWB board to engage in meaningful discussions with Regus, Regus has no option but to withdraw its Indicative Offer for MBE and now announces that it does not intend to make an offer for MBE.

Regus is disappointed that the Independent Committee has repeatedly refused to engage with Regus and continues to recommend an inferior offer from MWB, holder of approximately 72 per cent. of MBE's issued share capital. Bearing in mind the current high debt gearing in MWB, MWB's record of not having paid a dividend in 9 years and the relative illiquidity of its shares, minority shareholders in MBE may now ask themselves how long it will be before the value of their current holding in MBE attains a level equivalent to Regus's Indicative Offer.

Notes

Under Rule 2.8 of the City Code on Takeovers and Mergers (the "Code"), and except with the consent of the Takeover Panel, this statement will prevent Regus or anyone acting in concert with it from announcing an offer or possible offer for MBE or taking certain other action within the next six months unless there has occurred an event, as set out below, which enables the statement to be set aside.

For the purposes of Rule 2.8 and other relevant provisions of the Code, Regus reserves the right to announce an offer or possible offer for MBE and/or take any other action otherwise precluded under Rule 2.8 of the Code within the next six months in the event that there is a material change in circumstances or any of the following events occur:

(i) the MWB Scheme fails, is withdrawn, does not become effective or lapses, for any reason (including, without limitation, by virtue of (i) the resolutions not being passed by the relevant majorities at the shareholder meetings of MBE which have been convened to consider such resolutions (or at any adjourned meetings); (ii) the Court not sanctioning the MWB Scheme; or (iii) the MWB Scheme not becoming effective before the long-stop date set for the MWB Scheme in the scheme document sent to MBE shareholders on 27 May 2011, and with the agreement or recommendation of the independent directors of MBE or the board of MBE, as the case may be;

(ii) if MWB change their offer structure from a scheme of arrangement to an offer and that offer lapses, is withdrawn, fails to become unconditional in accordance with its terms, or does not succeed for any other reason, and with the agreement or recommendation of the independent directors of MBE or the board of MBE, as the case may be;

(iii) a third party (other than MWB) announces an offer for MBE;

(iv) a third party announces an offer or possible offer for MWB; or

(v) MBE or a third party announces a "whitewash" proposal (as described in Note 1 of the Notes on Dispensation from Rule 9 of the Code) or a reverse takeover (as described in Note 2 to Rule 3.2 of the Code).

Enquiries:
Posted at 10/6/2011 12:10 by knowing
TIDMRGU TIDMMWB TIDMMBE

RNS Number : 2419I

Regus PLC

10 June 2011

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

10 June 2011

REGUS PLC (SOCIETE ANONYME) ("Regus")

REGUS REAFFIRMS ITS OFFER VALUING MWB BUSINESS EXCHANGE PLC ("MBE") AT GBP60M, SUBJECT ONLY TO CONFIRMATORY DUE DILIGENCE

This is an announcement falling under Rule 2.4 of the Takeover Code (the "Code"). It does not represent a firm intention to make an offer under Rule 2.5 of the Code. Accordingly, there can be no certainty that any offer will ultimately be made.

-- Regus reaffirms commitment to and seriousness of its all-cash offer for MBE

-- Regus continues to believe that its offer is far superior to that of MWB

-- Regus is disappointed that the Independent Committee and the MWB board and their advisers continue to refuse to engage with Regus contrary to their recent misleading announcements

-- Regus is now improving its offer by dropping all previously announced reservations, subject to confirmatory due diligence

Regus has noted the announcements made by MWB Group Holdings plc ("MWB") on 8 June 2011 and MBE's Independent Committee on 9 June 2011 and can confirm that it remains committed to its offer for all of the issued share capital of MBE for cash consideration of 92.36 pence per MBE share (the "Offer" or "Regus's Offer"). Regus can confirm that neither the Independent Committee nor the MWB board nor their respective advisers have engaged in any meaningful way with Regus to discuss the Offer.

Value and seriousness of Regus's Offer

Regus's all-cash Offer of 92.36 pence per MBE share represents a 70.6 per cent. premium to the offer made by MWB on 28 April 2011 ("MWB's Offer"). Regus reiterates that its all-cash Offer for MBE is serious. In contrast, Regus notes that MWB's Offer is not only significantly inferior to Regus's Offer, but also that in the scheme documentation relating to MWB's Offer it has been disclosed that the MWB group's funding with Lloyds Banking Group is still conditional. As Regus has previously noted, the MWB group's net debt for the period to 31 December 2010 stood at GBP301.7 million (as disclosed by MWB in its Interim Statement dated 28 April 2011).

Engagement with MBE

As announced by MBE, Regus can confirm that Mark Dixon did meet with two members of the Independent Committee, Malcolm Murray and Rick Aspland-Robinson, on 11 May 2011. However, what was not disclosed by neither the Independent Committee nor MWB in their respective announcements was that this sole meeting lasted less than 5 minutes allowing Malcolm Murray and Rick Aspland-Robinson to tell Mark Dixon that MWB would not accept Regus's Offer and that they would not engage with Regus.

Regus therefore asserts that despite the misleading announcements made by MWB and the Independent Committee, both parties and their respective advisers have refused to engage in any serious fashion at all.

Conditionality of Regus's Offer

Regus can confirm that its Offer is pre-conditional only on a recommendation from the Independent Committee and limited confirmatory due diligence. As previously stated, Regus would obviously also require the support of MWB given its shareholding in MBE.

As mentioned in the Independent Committee's announcement on 9 June 2011, Regus has had access to diligence information made available by MBE and as a result of that due diligence work was able to present its Offer to MBE. However, as a result of the introduction of additional information set out in MWB's announcement on 27 May 2011 and in the scheme document posted to MBE shareholders relating to inter-company guarantees and possible charges which might be introduced between MWB and MBE, Regus requires confirmatory due diligence.

Subject to this confirmatory due diligence, Regus is now dropping all previously announced reservations to its Offer price.

Regus has previously requested that the Independent Committee partially release Regus from the confidentiality agreement dated 15 March 2011 so that it can better explain its Offer to the independent shareholders of MBE. However, so far no such permission has been forthcoming.

Commitment to the Offer

While Regus remains committed to its Offer for MBE and firmly believes in the superiority of its Offer, Regus acknowledges that MWB owns approximately 72% of MBE and therefore cannot succeed in its Offer without the support of the board of MWB.

Regus will not continue to pursue a transaction which has no chance of being completed. Regus is a global company operating in over 90 countries and has many options for investment around the world.

Regus notes the open letter from MWB's and MBE's largest shareholder expressing its deep concern with decisions made by the Board of MBE.

Regus would ask the Independent Committee and MWB to properly engage with it to allow Regus to formally make its superior Offer to MBE shareholders.*

*Notes:

As announced on 7 June 2011, Regus will announce that it will not be making an offer under Rule 2.8 of the Takeover Code (the 'Code') if the Independent Committee or the MWB board do not enter into discussions with Regus by 17.00 (BST) on Monday 13 June 2011 and, because the meetings have already been called, neither the Independent Committee nor MWB or MBE have confirmed publicly that they will be seeking an adjournment of the shareholder meetings required to implement MWB's Offer.
MWB Group share price data is direct from the London Stock Exchange

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