Assetco Share Discussion Threads

[warwick69] 17/8/2011 13:16

i wonder if someone has heard some news now? as all buys and price ticking up quickly now

[warwick69] 17/8/2011 13:10

2.9 paid must be very little on the offer to meet latest demand?

[warwick69] 17/8/2011 13:09

treacle unless someone pulls a fast one does placing prior to buy out so the bigger shareholders improve their % ownership? would be a bit underhand if no announcement prior to Bid.

[treacle32] 17/8/2011 13:03

Won't be diluted if takeover happens???

[topvest] 17/8/2011 13:02

I no longer hold Assetco; managed to get out at a small profit before the problems really started. Still keeping a watch though. I would be very wary of investing anything here until the deal is announced. Existing holders are bound to be severely diluted, so I think some of the posts above are highly optimistic for a group which is essentially bust if it were not for the support of North Atlantic Value and other major holders.

[warwick69] 17/8/2011 12:58

getting interesting now 2.73 paid and in auction again? will we break 3p this time and stay up?

[treacle32] 17/8/2011 12:08

Bigger rises soon imo.

[caledoniaman1] 17/8/2011 11:57

Just bought another £5k worth for my SIPP - reported on the Plus Mkt - 198,208

[warwick69] 17/8/2011 11:54

the slow rise continues as we get closer to the deadline for news?

[chlo3] 17/8/2011 09:31

The contract with UAE is worth 40 million over 5 years. Any predator will be licking their lips at this esp with our market cap of 5 million.
Still high risk though

[treacle32] 17/8/2011 09:20

Nicely poised for big rise imo.

[warwick69] 17/8/2011 09:20

do we know what the current debt is as this is stated on their website but not sure how current.

We delivered a £10.8m increase in profit before tax from continuing operations on the prior year, and in line with the long-term contractual nature of the business 100% of our forecast revenue for financial year 2011 is contractually committed. We have proactively reduced our recourse debt from £35.7m to £18.9m (which on a net debt basis less cash is £5.2m)

This is not as large as some have indicated in earlier posts and as such may not be such an issue to potential bidder?

[chlo3] 17/8/2011 09:15

dummy sell gives 2.35. If they go into admin all the contracts become null and void and they have some cracking ones. Hence the bidding war.

[warwick69] 17/8/2011 08:38

dummy sell gives 2.3 so bid creeping up still no news so anyones guess. Bidders taking this to the wire Board should request a put up or shut up under takeover code.

I get feeling there is not going to be any bids surely we would have had some comment by now. Looks like no one willing to bid as will have to take on all the debt?

so rather wait till administration and pickup the pieces after.

[warwick69] 16/8/2011 16:25

are you sure ther are any shorts no loan on stock on dataexplorers?

[treacle32] 16/8/2011 16:01

Looking good and nicely getting poised for news.

[tony1812] 16/8/2011 15:56

The current spread is very discouraging for short seller. It looks like a set up to trigger a short squeeze or forcing shorts running for cover.

[treacle32] 16/8/2011 13:33

Finally, started moving.

[warwick69] 16/8/2011 13:10

another tick up come on lets be having you some news would be nice from the company?

[warwick69] 16/8/2011 13:02

I think it sellers they have put off with low BID Buyers would be more than happy at 2.45 if they thought a bid at 4 6 or 8p was on the cards ? they dont want recent buyers at 2 to 2.1p scalping a quick 5 to 10% profit in my opinion?

[treacle32] 16/8/2011 11:50

Spread too high at the moment. Don't want buyers imo before news comes.

[topvest] 16/8/2011 10:58

The only winners here will be the investing group. Massive dilution for everyone else imo as the group is effectively bust.

[tez123] 16/8/2011 10:25

Don't forget Arcapita were willing to pay between 14p-21p in march and if there is the slightest bit of truth of multiple bidders we might just be punching a little below are weight hoping for a 4p-8p takover.

The current UAE contracts are worth many multiples of the current market cap.


Assetco board split on takeover approach

By Alistair Gray
Published: March 14 2011 19:15 | Last updated: March 14 2011 19:15
The company that owns London's fire engines was thrown into fresh turmoil on Monday after it emerged that its board was split on whether to back a takeover proposal from a Bahrain-based investment house.

Arcapita Bank said on Monday that it made a bid approach for Assetco last week that was supported by John Shannon, chief executive, who has a near-30 per cent stake in the struggling Aim-quoted company.

EDITOR'S CHOICE
AssetCo beset by funding woes - Feb-21

AssetCo statement - Feb-21

AssetCo looks to investors as talks fail - Feb-15

The indicative cash offer from Arcapita, which said it was "considering its options", is thought to have been pitched at a range of between 14p and 21p. "I felt it was an attractive proposition," Mr Shannon said.

Shares in Assetco closed up 3.88p at 19.75p.

But other directors showed no sign of backing the proposal. "He's got an agenda and the other board members have got a different agenda," said one person close to the company.

In a statement issued on Monday before Arcapita made its interest public, Assetco said that independent directors considered "the current approach to be opportunistic".

The company added that the "the indicated price range included an offer at a discount to the current market price."

Assetco has lost two-thirds of its market capitalisation since the turn of the year after warning that it need to turn to shareholders for cash to help deal with urgent funding problems.

HM Revenue & Customs presented a winding-up petition for the company, which has a 20-year private finance initiative contract to supply equipment to the London Fire Brigade and a deal to provide emergency backup crew.

The Fire Brigades Union has said the uncertainty surrounding the future of Assetco meant that London's fire engines were owned by a "company in meltdown" and underscored the risks of privatisation.

Arden Partners, broker to Assetco, said earlier this month that Mr Shannon as well as chairman Tim Wightman and finance director Scott Brown would stand aside from their posts following plans to raise £16m ($26m) from shareholders.

However, Mr Shannon – who led a management buy-out of Assetco in 2005 and subsequent flotation – said on Monday that he had "no intention of resigning" as shareholders not made such a request.

The other large shareholders include JO Hambro, Gartmore and Standard Life.

It also emerged on Monday that Lloyds Banking Group, Assetco's principle banker, had injected £1.45m "to meet certain critical payments ahead of the placing proceeds becoming available."

[caledoniaman1] 16/8/2011 09:41

If I had a spare grand or two for a punt, I would have a go here and average down. Bought at 6.75p and looking to get out withot too much pain :)