BCB Holdings Share Discussion Threads

[skyracer] 10/11/2011 12:28

Just to say that my holding of Waterloo has appeared in my account. No bid price therefore zero value (understandably) but down as 80p cost which is probably about right for the moment.

[horace678] 09/11/2011 12:36

It's down to about the same percentage in relation to NAV as it was before the demerger, i.e. about 25% of NAV

[hjfe] 09/11/2011 11:00

How low will this go?

[horace678] 03/11/2011 20:35

Yes, the WIHL shares are a bit of a hassle and it would be nice if Lord A could buy out our positions at a fair price. I like the idea of BCB more as we can follow the shares easily, plus buy and sell.

[jrr774] 03/11/2011 17:27

I had an email back saying they're evaluating the situation. I'm not wanting to sell but it would be nice to have the option. I wonder how the matched bargain basis for the WIHL units will work in practice. Hopefully the NAV will be calculated on a semi annual or annual basis and WIHL (that is, Ashcroft) will be willing to support the price, hence my earlier qn regarding buybacks. Given the miniscule free float I would estimate the non Ashcroft linked holders are no more than 15% of the total shares, so if he wants to do a trade sale at some point down the line hoovering out small holders wouldn't be costly. Fingers crossed.

[horace678] 02/11/2011 23:06

I have a nominees account with TDWaterhouse and they contacted me today to explain the situation. They said that if I wanted to sell the shares, I could contact them and they would contact JP Jenkins in turn. However, there's no indication of the shares in my nominees account list as yet. It looks as if Capita are the registrars for these shares.

[jrr774] 02/11/2011 20:54

Horace - you indicated the NAV per share at $2.95 for WIHL which is about 1.85 in real money, so it's well below NAV (albeit the two entities are now worth about 1.32 post demerger so pretty much double where we were before the announcement). I still have zero information or an updated share position through Barclays Stockbrokers. Pathetic. Anyone else who holds via a nominee in this position?

[horace678] 02/11/2011 16:48

It makes sense that the share price in BCB should be dropping as the NAV is much less than it was before the demerger. Now would be a great entry point, as one would expect the share price to be higher than the NAV (the NAV would suggest a share price of around 80p). In particular, look at the warrants, where the exercise price from Aug 1 2012 will be $1.95 (about £1.20 at present exchange rate) which is an anticipation of a share price being much higher. I would "hold" or "buy". BTW, the mid-price of our shares on JP Jenkins for WIHL is 88p today.

[hjfe] 02/11/2011 16:35

Horace,

Any thoughts about what is going on with the share price here? It seems to be tanking - a sell just gone through at 30p!

I'm interested by the story here, and considering is this the optimum entry point?

[horace678] 26/10/2011 15:56

My speculation about a cash repayment in post 59 is incorrect. The capital reduction must consist of the assets in BCB being fewer and the "repayment" must consist of the issue of WIHL shares. So if you have 1000 shares in BCB, you will end up with a further 1000 shares in WIHL. The share price of BCB seems to be holding up, and if it were equal to the NAV would be worth about 80p. If the shares in WIHL were to be equal to NAV then our holdings would be worth about FOUR TIMES what they have been before the demerger. There is no mention of a buyback scheme in WIHL shares.

[jrr774] 26/10/2011 15:38

Many thanks. Does it go into detail regarding the capital reduction and repayment you mentioned in post 59?

Hopefully as an unlisted stock WIHL will trade at or much nearer to TNAV when traded via JP Jenkins. I'm not sure if Ashcroft's intention is to push out small investors by buying stock at that level, but it sounds from the mention of the 80% discount to NAV at present they hope to close the gap. Is there any mention of a buyback scheme for WIHL shares? If shares are priced in accordance with an audited valuation we could potentially have a three bagger from the current share price, and still hold on to the Belize interests in 'new' BCB.

[horace678] 26/10/2011 14:52

I have seen the circular (from my mum who has the shares in certificated form), but didn't bother going to the GM. We are getting an equal number of shares in WIHL as we already hold in BCB. The total assets of "old" BCB were $421m, of which $126m will constitute the "new" BCB (Belize bank) and the rest, $295m, will constitute WIHL (interests in T&C, Numar etc). On this basis, if the share price of BCB stays the same, it'll be a much better indication of the underlying assets. I have been trying to find out the initial price of WIHL. If there are 100m shares representing assets of $295m, does this indicate that the shares should be worth $2.95 each? I'll keep you posted.

[jrr774] 26/10/2011 12:51

Horace have you seen the circular? I'd be interested to know the terms of the demerger and the repayment we can expect. I've asked my broker to contact BCB for the circular again. I know BCB/Ashcroft has a reputation for keeping analysts at arm's length but shareholders (or at least those held via nominee accounts) seem to have been excluded too.

[horace678] 25/10/2011 13:13

Is anyone going to the GM at Allen & Overy at 8:30 am tomorrow (Thursday 26 October) ?

[horace678] 21/10/2011 17:57

Reading the second para of the press release again, it looks as if BCB shareholders will be issued with shares in WIHL, but that these will be then bought up in return for a "repayment" for our holdings. This will make sense of the oddity of having trade on JP Jenkins, i.e. we won't have to trade on JPJenkins as we won't have any shares. I have not seen the circular yet, but if anyone does, it would be nice to know how much the "repayment" is.

[horace678] 21/10/2011 15:55

The dividend consists of the new shares in WIHL, does it not? i.e. if at present we have 5000 shares in BCB, then after the demerger, we will end up with 5000 shares in BCB and 5000 in WIHL, i.e. a dividend consisting of 5000 shares in WIHL. The terms can be seen in the footnotes of the Demerger press release, if you look under the First Meeting and the Second Meeting.

There is massive amount of value to be unlocked from BCB.

[jrr774] 21/10/2011 15:29

Horace - my broker has not received anything yet. I hope this demerger can unlock some of the value in BCB but assuming the private company portion is traded on a matched basis I won't hold my breath. Hopefully the dividend will be generous but we as small shareholders are at Ashcroft's mercy as to how this plays out given his majority stake. I bought at 72p but don't intend to sell. Yet.

[horace678] 21/10/2011 12:05

Has anyone seen the circular that is being sent out to shareholders?

[horace678] 21/10/2011 10:30

I wonder what price the shares in WIHL will start trading at?

If the assets behind WIHL are $295m and the number of shares in WIHL is 100m, does that mean that the shares will be worth $2.95 each?

If it does, it means that our total holdings will be worth much more than they are now, if BCB stays at the same price.

After the demerger, the BCB shares will still be cheaper than the underlying assets (which will be worth about £125m). Any thoughts?

[skanjete2] 21/10/2011 10:13

Tomorrow they're voting the Ninth amendment in Belize.

Could it be that they (Ashcroft) try to protect the company from nationalisation? They're stripping all non-Belizean assets from the holding so that they can't be nationalised (they will be now in a BVI holding).

The Belize government can still try to nationalise Belize Bank, but that bank only comprises 30% of the assets and is seriously loss making. Maybe the government will not be very eager to take on and sponsor a loss making bank.

I suppose that the possibility exists that they will merge the assets again once the political situation in Belize clears up.

That's the only explanation I can think of for this demerger.

Has anybody any experience with the JP Jenkins facility for trading the WIHL shares?

[horace678] 20/10/2011 09:21

Looks like all the debt is being parcelled off to Waterloo along with the edible oil business (Numar), while the Belize interests are the functioning bit which are being kept separate. There is the admission in the press release on page 2 that the shares are at a discount of 80% to the asset value.

[skanjete2] 19/10/2011 17:04

Are there any views here on the demerger?

[horace678] 14/7/2011 14:30

Down the slippery slope...this must be one of the cheapest shares on the planet...

[hjfe] 14/7/2011 09:50

What just happened here?!