Assetco Share Discussion Threads

[greedfear] 16/8/2011 09:26

According to my own financial analysis a takeover bid should be at least 4p.

[warwick69] 16/8/2011 09:05

Greedfear yes thats because a lot of new shareholders have paid these prices so who would not be happy with 400% gain in a few weeks?

[greedfear] 16/8/2011 09:02

A year ago share price was 60p and today shareholders would welcome a 8p takeover bid. :)

[greedfear] 16/8/2011 09:01

It's all of no importance once we see the 8p takeover bid a lot of people expect. 8p!

[warwick69] 16/8/2011 08:48

buys going through at 2.4275 yet dummy sell only offered me 2.0675 what a complete disgrace

[greedfear] 16/8/2011 08:38

The spread probably is that way because they (whoever...?) don't want people to buy?

[warwick69] 16/8/2011 08:29

highest price paid at 2.4p since the day i purchased at 2.82 when 3.1 was paid by someone this was 2 weeks ago so maybe something brewing as we get near to some sort of an announcement?

See the spread has got nice and tempting!! NOT

[treacle32] 15/8/2011 18:28

Looking good for rest of the week imo.

[tez123] 15/8/2011 14:53

AssetCo: truth can be stranger than fiction



Wanted, multi-millionaire philanthropist with a lifetime passion for fire engines? Why waste money on football clubs and tiny islands in the Indian Ocean, when you can get a complete working set of London's Fire Brigade service, in perfect working order, including its own fully functioning trade union, and a steady supply of fires, cats in trees, and kids heads stuck in railings? Current market cap around as little as thirteen million pounds.

Why do we keep writing about AssetCo? Well, we have to, as it just won't stay out of the news! AssetCo has been in the City press once more, and questions are being asked about it in the House. The company made the City headlines as the biggest percentage jump in share price (+29 percent) on the AIM market, one day last week. Its management issued a statement that it continues to be in a Takeover Period for the purposes of the City Takeover Code, and is in discussions with a number of parties which may or may not lead to an offer being made for the business, but with the usual disclaimer that whilst discussions are at a developed stage, due diligence is not complete, and there is no certainty any parties will make an offer.

The outsourced fire and rescue services business that has spent much of 2011 going round in circles (or as some press reports humorously put it, "firefighting") is said to be in talks over a possible takeover again, which takes the company back to the path down which ex-CEO John Shannon was heading, before he vacated his board position.

City A.M. reported that it understood US marine and aviation services provider Seacor Holdings has been in negotiations with AssetCo since May, and is currently in due diligence with the company. Another interested bidder, Manchester-based turnaround investment company Consilia, has been meeting shareholders with a view to gaining substantial support for a bid.

What may be confusing to the outsider is that a month or so ago, when the new management team swept out the old, and secured new capital, the spin was clearly that safe hands had taken the helm, decks were being cleared and the ship was back on course. Since then, with the revelation that bid talks have been continuing all the while, and the now routine acceptance of the idea that AssetCo is sitting on a chronically mismatched funding formula which seems incapable of resolution, almost nothing would surprise the detached observer.

Last week, Labour MP John McDonnell asked the government to reveal what it would do to protect the London Fire Brigade if the company goes into administration. "I'm extremely worried that the precarious nature of the company could put the fire service at risk," McDonnell said. "I believe we need a full investigation into how this company was allowed to get this contract."

Robert Neill [holding answer 7 June 2011] replied positively, at the same time putting in a good word for leasing, "Sharing back office functions and improving procurement are key ways that fire and rescue authorities can deliver sensible savings, while protecting the quality and breadth of frontline services offered to their communities.

"While each fire and rescue authority is responsible for their own policy on procurement, they should constantly search for the best value for money in delivering their services. Outsourcing the provision of capital equipment can be one such way, provided the precise terms and conditions of the contract represent value for money in the long term.

"I know that the hon. Member has an ongoing interest in the contract between London Fire and Emergency Planning Authority ("LFEPA") and AssetCo.

"As you will expect, we have been in close contact with LFEPA over the financial situation regarding AssetCo. LFEPA have given us their assurance that appropriate arrangements are in place to meet their statutory duties, and ensure a continued service to the people of London, irrespective of AssetCo's particular financial circumstances.

"Notwithstanding, I would note that these outsourcing arrangements have previously been beneficial for Londoners by strengthening resilience and business continuity. Indeed, the level of investment provided by the contractor as part of the private finance initiative contract has meant that the current fleet and equipment is more modern and effective than could have been achieved by LFEPA if they had procured directly themselves. During the industrial action last year, AssetCo deployed 27 fully crewed fire appliances, from 27 strategic locations across the London Fire Brigade area."

The Fire Brigades Union ("FBU") has condemned the For Sale notice placed on AssetCo, and hints darkly that the London Fire Brigade has no control over what happens to all its fire engines and 50,000 pieces of rescue and safety kit. They warn of a scenario where debtors could seize assets and the fire engines and kit could be forfeited to creditors and sold off in full or part to any fire service in the world.

Matt Wrack, FBU General secretary said, "Assetco could be bought, bought and re-sold, bought and broken up or creditors could take court action and the fire engines and kit sold off piecemeal or as a job lot. London fire service is being forced to sit on the sidelines waiting to see what's going to happen to all its fire engines and 50,000 pieces of critical fire kit.

"The privatisation of almost its entire operational capability has left the London fire service facing enormous uncertainty. It is a ridiculous situation for an emergency planning authority not to be in direct control of its appliances and the result is there for all to see."

Fundamentally, AssetCo is a full-service / contract hire type lessor, like a rail lessor or car lessor, which buys the equipment required by the Fire Brigade with funding lines from banks. It has said that whilst it is cash generative and could meet its interest costs, it was not generating sufficient funds to meet all the repayment of capital as scheduled. It's a shame they didn't arrange the funding on a head-lease / sub-lease basis to start with, but then probably there were no takers for the residual values in the equipment at the time? To try and fix the problem, AssetCo said it was talking to its banks about further funding options, and that they had been broadly supportive, but now it looks like it is looking for a buyer with deeper pockets who can carry the capital element for longer periods.

[treacle32] 15/8/2011 14:40

2.10p bid now, move soon???

[treacle32] 15/8/2011 13:44

Chill out Warwick, no one said about news on Monday.

[warwick69] 15/8/2011 10:57

yes Friday shananigans no doubt?

But as stated we do hav to have some news before 25th August re court case?
so hopefully wioll drag out at least one bid offer before that?

Company will have to do a put up or shut up. Or will have to confirm a placing which will lead to massive dilution. So hope its a bid

[effortless cool] 15/8/2011 10:49

What a surprise.

[warwick69] 15/8/2011 10:48

so all rumours on Friday and now completely quiet?

[baldeagle5] 14/8/2011 14:46

I would guess there is news this week on either the T/O or placing

[treacle32] 13/8/2011 16:40

In the worse case scenario, the backers at 10p are prepared to inject a further 10 million pounds. As per post 1708, they won't want to give their existing shares at too lesser a price considering they're prepared to stump up more money. I think settle for something at 7 to 8 pence through a takeover.

[effortless cool] 12/8/2011 22:29

In the worst case scenario, this is bust.

[tony1812] 12/8/2011 22:09

In the worst case scenario: Before dilution there were 90,712,714 shares and Arcapita was willing to pay something between 14-21p. If we take 14p it gives us a market capital of £12,699,779.96. After dilution the total float is 250,712,714 shares, if we keep the same market capital, it will be 5p.
However, those that bought at 10p will expected to received at least 10p.
If the company doesn't go into administration 2p sounds good.

[effortless cool] 12/8/2011 19:53

Yes, a 1 June news report is hugely relevant here now.

[tony1812] 12/8/2011 18:58

It looks like there are 3 biders: seancor (USA), investindustrial(Italy) and Cosilia (UK). Arcapita bid was already rejected. It seems, after dilution, we can have anyting under 10p.

[treacle32] 12/8/2011 16:38

1 Million buy order on the order book at 2p remained at closed.

[treacle32] 12/8/2011 16:03

1 Million buy order on the order book at 2p.

[readytotrade] 12/8/2011 14:55

1m buy on the order book on l2 @2p somebody wants them