Arkle Resources Share Discussion Threads

[boobly] 27/5/2003 11:14

I have a suspision that shareholders have been - and are being duped by all these machinations.

[usure] 27/5/2003 09:59

How is that worked out spyderman, and if right when will the price reflect this.

[spyderman] 27/5/2003 09:35

check my calculations but seems that the buyback resulted in 0.9p rise in cash per share to 32.5p based on 31/3/03 balance sheet.

[realcooltrader] 12/2/2003 19:07

mad4IT

Thanks

rct

[fozdad] 12/2/2003 19:06

Mad4it,

I hope they don't tender the £1.5million of shares in the buy-back.....that really would be a cheek.

It says they are lending the money, I assume this means the company will get it back at some stage?

[mad4it] 12/2/2003 18:29

Looks about right MJ. But I'm still trying to work out the full implications.

What do you make of this, it looks like the Directors are allocating themselves 1.5 mill of shares out of OUR money:

The Board today announces the details of the return of £50.0 million
of cash by means of a tender offer ("Tender Offer") involving the
repurchase for cancellation of up to £48.5 million worth of ordinary
shares (less the costs of the Tender Offer) and the lending of a
further £1.5 million by the Company to the trustee of ARC
International's Employee Benefit Trust ("the EBT Trustee") to fund
proposed market purchases of ordinary shares by the EBT Trustee.


IE, the directors say, 'we are returning 50 mill to the shareholders'...

....except we're not cause we've decided to keep 1.5 mill for ourselves!

....Oh, and less costs too.

Hmmmm! Am I being to cynical or are they trying to pull a fast one here ?

[mjcrockett] 12/2/2003 18:12

The tender offer seems to me to be quite a cunning ploy. I would have thought that it was fairly good news. However, there were still some sells going through the market after the announcement - so perhaps I haven't fully understood the implications.

I would have guessed that this would effectively put a floor under the share price at 22p - wish all my holdings had floors within 10% of the current price!

My interpretation of the announcement is that all holders can put a bid in to sell their share between 22p and 130% of the 10 day average price before the offer. So say the 10 day average was 30p, the maximum price would be 39p. THEN we all put our tenders in between 22 and 39p and the price which burns up all of the £50m is the strike price and every person who bid the strike price or LESS gets their shares bought at the strike price. So, possibly in my example, greedy people who tendered close to 39p, might not get their shares purchased.

Why I think that this should be a good thing for the share price is that the company is spending £50 million and there are only around 300 million shares in the company. Taking account that some of these shareholders will not want to put their shares into the tender, it is quite possible that a strike price in excess of 30p is on the cards.

Anyone agree/disagree with my interpretation?

MJ

[logica507] 12/2/2003 17:54

What is the qualifying date? are there any restrictions? or can anyone purchase xx number of shares (and if the market does not fall further!) collect a 30% premium?

[mad4it] 12/2/2003 17:53

realcooltrader

The edit button can only be seen and used by you. We all have our own.

It's for correcting spelling mistakes, or changing any wording you're not happy with after you've posted.




fozdad

That's my initial reading as well, but I'm off to read it again.

On first reading it looks like a good deal for shareholders.

[fozdad] 12/2/2003 17:36

Symbol,

As I understand it, if you make a successful application, you are guaranteed at least 22p, but you may receive up to 30% more than the average price of the 10 days leading up to the offer date. Therefore, the higher the price leading up to the offer date, the higher the redemption price.

Archangel,

The date has to be announced but it will be sometime in the future, not the past.

[archangel gabriel] 12/2/2003 17:32

What wwas the date you had to be holding by? Assume it's past as the price has dipped since the announcement.

[symbol] 12/2/2003 17:30

Iam lost, does the staement mean shareholders will recieve 22p per share PLUS a 30% above share price ???

[realcooltrader] 12/2/2003 17:09

Off topic, I'm a new poster, so be gentle

Can anybody let me know how to get rid of that edit beside my message number?

TIA

rct

[cygnus] 12/2/2003 17:04

It seems to be a bit open-ended as regards the final share price ("max price paid will be avg. market price + 30%"). Will traders force this one up in the morning??

There also appears to be the hint of a management buyout.

Experienced commentators ... any comment?

[realcooltrader] 12/2/2003 17:00

Cygnus

I'm glad I'm not alone in not really understanding what it means!!

rct

[cygnus] 12/2/2003 16:34

I have to assume that the tender offer is good news for shareholders and will drive the price upwards.

[mad4it] 08/2/2003 19:40

spyderman

That's, err, easy for you to say! ;)


No seriously, he's right of course.

[spyderman] 08/2/2003 19:05

mad4IT

as philip green said recently - limit your your downside and the upside will work out itself for you

[mad4it] 08/2/2003 18:10

maestro

Welcome aboard, I'm sure you wont jinx us, afterall with 34p in cash the medium term downside looks minimal and the potential upside considerable. We just need a cyclical upturn to see the market re-rate ARK at a realistic value. I only have a modest holding at the moment, but I will go large on any good news or signs of a chip sector recovery.


Hi spyderman

A good set of results, especially given the economic and sector recession. I was immensely impressed with the revenues generated in Asia from a standing start and, it's worth repeating, so were 'Citywire' and shrewd fund manager Andy Crosswell :


For 2003, ARC's keyword is Asia, where the rise of China as a manufacturing centre is driving economic growth far faster than almost anywhere else in the world. Having increased Asian revenue from nothing to 6% of sales by the final quarter, the company is hoping for bigger things in 2003 with offices in Taiwan and Japan and a full year of a distribution deal in Taiwan and China.

Citywire Verdict:

By returning the cash and pushing into Asia, ARC is doing all the right things as it waits for the upturn in IT spending in general. The big question is when is that coming? The answer from the likes of Intel, Microsoft and last night Cisco Systems, is no time soon.

Of course Arc is a lot smaller and nimbler than those behemoths of the IT world and the shares (ARK), down 0.25p at 24.25p, trade well below cash.

Indeed the amazing cashback deal promises a full 16p a share on its own - one reason why Andy Crossley, smaller companies manager at Invesco-Perpetual, likes the shares.

[spyderman] 08/2/2003 17:30

mad4IT, exactly. its going to be interesting to see if revenues can continue to grow at 40%+, a couple of big contracts in asia could even step up the pace

[maestro.] 08/2/2003 16:56

mad4it...got in after results...hope this don't put the mockers on it though ;-)

[spyderman] 08/2/2003 14:38

down 36% in IC bargain portfolio 2002, but perhaps they just got their timing wrong ;)