Avesco Share Discussion Threads

[rogash] 29/11/2013 09:00

Michaelmouse, Thanks for your help.I misread your post as regards ntav.

[j24601] 29/11/2013 08:38

I want my money!

Think I will get it and a bit more now

Why comment on price when two holders own over 50% so can tell you what you will get and still have the majority

Wonder how Celador will fit into this equation.

Happily holding

So convinced I'm off to Adare Manor today to chill out and get a few rounds of golf in.

No stress here

[michaelmouse] 28/11/2013 21:06

rogash

1) Best to check back through the news items yourself, particularly the demerger that took place.
2) Nav of above £3 is before the return of cash (£1.10), an offer of £2 would value the company just above Nav after the pay out.

Just looked back at my previous post which stated that "over the years Avesco have not been an acquisitive company", I should have said "in recent years".

I am fascinated to find out what this "potential transaction" is and remain a firm holder.

My blog is purely speculation on one possibility.

Michael.

[rogash] 28/11/2013 08:10

Michaelmouse,Regarding your post perhaps you can help me on a couple of points?
1.They have a lot of cash now with which to do a deal.Have they been in this position before,ie a surplus of cash?
2 If they have an nav of £3,wouldn't an offer of approx. £2 be a little miserly?Or on the other hand basing on pe,basing on forward eps 2014 of 10p, an offer of 20
times be generous.What about basing on cashflow?
I would be very happy if your forecast is right, and I feel is a real possibility.

[gwr7] 26/11/2013 23:23

The wording is very careful. My reading is that there will be no surprise with the cash distribution. The interesting thing is what comes with it.

[michaelmouse] 26/11/2013 21:18

I posted this article back in February:-

hxxp://michae1mouse.blogspot.co.uk/2013/02/interesting-development.html

Since then the NTAV has increased to over £3 (pre Disney pay-out). My best guess is that Taya may be negotiating a buyout to take the company private, but I could be totally wrong.

The RNS is unequivocal about the return of £1.10 in cash, it's just being delayed by one month. If I'm right then expect £1.10 in cash, and an offer for the whole group in the region of £2+ (post payment). A hefty premium to the current share price.

Over the years Avesco have not been an acquisitive company, but of course there is always a first time!!

Either way it looks very positive to me.

Won't be long to wait anyway.

Michael.

[gwr7] 26/11/2013 10:18

Maybe not a Christmas Number 1 but could be Top of the Pops in 2014. All very interesting.

[wjccghcc] 26/11/2013 09:56

More likely means they only have to call one EGM rather than two.

[zoomydoo] 26/11/2013 09:50

So is it something that shareholders need to vote on, to be sent out at the same times as the the information regarding the cash return so saving on duplication of postal charges? That is my take at the moment.

[deanowls] 26/11/2013 09:16

Good point que pasa,

He found the money from somewhere to pay it off and for what reason, surely wait for the payout and then pay it off rather than incure financil arrangement fees in order to do that?

Alas the most important thing here is that the local Virgin megastore will be deprived of 13.99 for x factors greatest hits this coming christmas which will reduce how much x factor can then afford to pay avesco for the studio thus depriving us shareholders of funds, this is a downward spiral if ever I saw one!

[quepassa] 26/11/2013 09:03

Of course, if it is significant. But a sale of a division is not something which you would want or need to make relevant to the (timing of) Return of Cash.

These are very different types of corporate action.


On another point, it may or may not just be co-incidental that two weeks ago, Richard Murray freed up his personal 21% shareholding which was encumbered and being held as security for a loan. This is the 11/11 RNS:-

"Avesco (AIM: AVS) announces that the pledge made over 3,880,492 ordinary shares in the Company held by Richard Murray (the Chairman of the Company) as collateral for a loan and as announced on 28 July 2010 has been released. Following this transaction Richard Murray remains interested in 5,508,211 Ordinary Shares, representing 21.2% of the Company's voting rights. "

ALL IMO. DYOR.

QP

[wjccghcc] 26/11/2013 09:00

Thanks tiger.

[tiger20] 26/11/2013 08:53

They have had troubles in Germany which I think has been resolved-things not so good in Dubai-but Far East doing well.

I hear,also may be expanding another division.

imo but who knows !

[wjccghcc] 26/11/2013 08:52

QP, a sale does require shareholder approval if it's a significant part of the business.

Felix, I don't read it that way. They define the "Return of Cash" as 110p and state that they still intend to proceed with it in January alongside the transaction if agreement can be reached.

[felix99] 26/11/2013 08:43

Clear as day isn't it ?

They have found something to buy and if it goes through they will spend some of the cash earmarked for return to shareholders. The final price if a deal can be agreed will then lead them to adjust the amount of cash to be returned.

If a deal cant be reached then cash returns as was?

[quepassa] 26/11/2013 08:37

Concur.
However, selling just a divison would be unlikely to require shareholder approval/notification.

ALL IMO. DYOR.

QP

[wjccghcc] 26/11/2013 08:28

If they're delaying salary increases until the transaction is done, then it's more likely to be a sale of the company or one of the divisions.

[quepassa] 26/11/2013 08:13

Well, one thing is for sure. Avesco are not short of money after the massive Disney windfall.

If your info is correct, companies frequently delay salary increases when there are major corporate/management/ownership changes afoot.

All IMO. DYOR.

QP

[tiger20] 26/11/2013 08:07

I hear that Co.salary icreases been delayed till january ?

[wjccghcc] 26/11/2013 07:54

Can't tell if they're buying something or selling something.

[quepassa] 26/11/2013 07:31

Confirmation that they are going ahead with the Return of CASH.

One cannot rule out the possibility in my view only that they may or may not be in discussions negotiating selling the Company.

As pointed out above, it has to be something of a major corporate action/ nature to have " to present such transaction to the Company's shareholders at the same time as, and together with, the Scheme. "

Remember that this company has chosen for a long time now not to have a stand-alone Chief Executive. And esteemed founding Chairman Richard Murray, also a major shareholder, has fulfilled a dual role also as Chief Exec. This certainly simplifies and takes out a big management tier in any major corporate matter, discussions and negotiations.

Sounds good for the underlying share price!!

ALL IMO. DYOR.

QP

[gwr7] 26/11/2013 07:29

This is no longer my Christmas Number 1.

[stoxx67] 26/11/2013 07:22

lol... the stockmarket is a cruel mistress , at times...

[deanowls] 26/11/2013 07:14

Oh and the missus's CD for chrimbo has now gone for a burton!

[deanowls] 26/11/2013 07:14

It states "together with", if they were buying something why would they need to put it to shareholders?

Would they have to announce an offer or merger?

After the dissapointment at first reading it I am now quite upbeat.