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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Chieftain Grp | CFT | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 210.00 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 210.00 | 210.00 |
| Top Posts |
|---|
Posted at 31/10/2008 15:42 by hywel Thanks Gengulphus, yeah because of the big spread on CFT i guessed it was marginal.RNS today: Cancellation of Chieftain Shares By 1.00 p.m. London time on 30 October 2008, Redhall had received valid acceptances of the Offer, in respect of ordinary shares of 5p each in the capital of Chieftain ('Chieftain Shares'), from, in aggregate, the holders of 7,787,037 Chieftain Shares (representing approximately 88.90 per cent. of the existing issued share capital of Chieftain). Accordingly, now that the Offer has become unconditional in all respects, as set out in paragraph 14 of Part II of the Offer Document, Redhall has arranged for Chieftain to make an application to the London Stock Exchange for the cancellation of trading in Chieftain Shares on AIM. It is anticipated that such cancellation will take effect at 7:00 am on 1 December 2008. |
Posted at 12/10/2008 19:15 by davidosh featured in the FT yesterday..Shares in Redhall, the Aim-listed specialist engineer, have held up well this year, enabling the company to continue on the acquisition trail. Last week it announced a recommended bid for Chieftain, a smaller Aim-listed group providing engineering services to the marine, petrochemical and power sectors. It is offering 209.2p a share in cash, a premium of 9.5 per cent to Chieftain's share price on September 18, when news of the approach surfaced. Redhall is also raising £20m through a placing at 245p a share to fund the deal, which values Chieftain at £18.6m. Chieftain is for sale because Bill Taylor and Peter Wardle, who have led the board for 23 years, want to retire and sell their interest in more than 30 per cent of the equity. Redhall believes the acquisitionwill boost its capability as a niche UK engineering services group. The deal will improve its access to the nuclear marine sector and enhance its prospects in the oil and gas industry. It might also point to further consolidation among Aim companies. I must admit looking at some of my Aim stocks with solid businesses on p/e ratings of around 2 to 6 it is not difficult to expect further consolidation and at this moment in time I am very much thinking that accepting the deal on Thursday if there is no counter bid by then is the way to go and re-invest before the next deal is announced....Save for the fact that I will expect a huge premium on a company trading on a p/e of three. CFT still has huge potential but in these markets the retiring directors probably are taking a safe exit. |
Posted at 07/10/2008 09:49 by davidosh I am sure that 40p or so of the cash could have been handed back to shareholders this year at CFT without any distress to the business. It therefore suggests that the earnings flow is being bought for closer to a fwd p/e of 9. I still think they are getting a bargain and would be a buyer of RHL if they go below £2 if the deal is accepted. |
Posted at 01/10/2008 12:06 by gengulphus dpaccount,The first thing to understand about takeovers is that there are two very different types: normal takeover offers and schemes of arrangement. This is a normal takeover offer. In a normal takeover offer, the bidder is basically offering to buy your shares from you at a given price (209.2p in this case), subject to a number of conditions. If you accept and the conditions all become satisfied (known as the offer going unconditional), you've sold your shares to the bidder. That's basically a contractual sale between you and the bidder that comes into effect on the later of the date you accept and the date the offer goes unconditional. And as with any other contractual sale, it is not subject to a vote by the other shareholders - it's basically between you and the bidder. The conditions of a normal takeover offer always include an "acceptance condition" that says that the contractual sales won't come into effect until the bidder has received enough acceptances. The bidder can choose what level to set it at, subject to one constraint: it must be high enough that if it comes into effect, the bidder will end up with more than 50% of the shares and so will get operational control of the company. (That basically means that they can then force through any ordinary resolution at company general meetings. However, resolutions that have more serious impacts on shareholders generally have to be special resolutions, which require 75% "yes" votes to pass - so to get full control of a company, a bidder has to acquire 75% of the shares. Most bidders want to get full control.) So what happens if you don't accept? The immediate answer is "nothing" - you keep your shares and the bidder doesn't get them. If the bidder doesn't get enough acceptances to reach their acceptance condition, or if one of the other conditions fails to be met (normally, they're regulatory matters and conditions that the company being acquired doesn't strip itself of value, e.g. by paying out a massive dividend before the offer goes through), they don't buy anybody's shares. If they do get enough acceptances and the other conditions are met, then the bidder buys the shares of the shareholders who accepted, but not those of the shareholders who didn't accept. Either way, the shares of the shareholders who didn't accept don't get bought. In other words, the level of acceptances acts like a vote in one respect: if it doesn't get high enough, it prevents anything from happening. But it doesn't act like a vote in another respect: if it does get high enough, it doesn't force shareholders to sell their shares. It's therefore not really a good idea to think of it as a vote. However, that's just the immediate answer. There are three further things that can happen. The first is that a bidder who gets operational control (i.e. more than 50% of the shares) gets the ability to do quite a few things that the remaining shareholders won't like. For example, they can refuse to recommend the payment of dividends. Generally speaking, though, the things they can do are reasonably limited. The second is that the bidder who gets full control (i.e. at least 75% of the shares) gets the ability to do a lot more things that the remaining shareholders won't like. One very important one that a bidder who gets full control almost always does is delist the shares from the stockmarkets they're on. Owning shares that you cannot sell because they're not listed on any stockmarket isn't very attractive, so this generally places a lot of pressure on any shareholders who are still hanging on to their shares to change their minds and accept. The third is the compulsory purchase rules of company law. They say that if a bidder gets at least 90% acceptances from other shareholders, they can compulsorily acquire the remainder at the offer price. (The "other shareholders" part means that if the bidder has already got N% of the shares before they bid, they've got to get 90% of the other (100-N)%. If you work it out, that means that they actually need (90+N/10)% of the shares before they can compulsorily purchase the rest.) This offer has used a fairly common formula: they've set the acceptance condition at 90%, but reserved the right to change it. I.e. they're trying in the first instance to go all the way up to being able to compulsorily purchase any remaining shares and so get 100% ownership of the company (the most satisfactory outcome for a bidder, as it relieves them of a number of costs - for example, the cost of sending reports on the company to the remaining shareholders twice a year). But if they don't get that level of acceptances, they might well revise the acceptance condition downwards. In particular, if they get between 75% and 90% acceptances, they're quite likely to revise it down to 75%, because by doing that, they can bring the sales into effect, get full control of the company, delist it and probably get enough further acceptances to go over 90% from shareholders who would prefer to continue to hold the shares, but not at the expense of not having a market for them. One other thing to say is that the Takeover Code requires an offer to remain open for at least a fortnight after it goes unconditional. So there is no hurry to accept an offer before it goes unconditional - about the only reasons I know of for doing so are if you reckon it's a good offer and want to increase the chances of it reaching its acceptance condition, or you're not going to be able to deal with it later and don't want the hassle of giving someone a power of attorney to do it for you, or for some reason it's important for you to get the money as soon as possible after the offer goes unconditional. And there are a number of good reasons not to accept before the offer goes unconditional - in particular, accepting before then will result in your broker putting your shares in escrow, where they are still yours but not under your control. That prevents you from selling if the market happens to offer a higher price (e.g. because of rumours of a competing offer) or accepting a competing offer if one comes along. (You might be able to get them out of escrow by withdrawing your acceptance, but that is dependant on exactly what the offer says about being able to withdraw acceptances, and also takes time - important if e.g.rumours of a competing offer get squashed before you can get your shares out of escrow...) The net result is that my normal procedure with takeover offers is: * Watch the RNSes carefully to make sure I know what stage of the process the offer has reached. * Before the offer has gone unconditional, I almost certainly don't accept. * If the offer has gone unconditional but not reached any of the other milestones, I probably do accept if I think it's a good offer, but probably don't if I think it's a poor one. * If the offer has reached the point where the bidder has got 75% of the shares and has said they're going to delist the shares, I almost certainly do accept. Becoming trapped as a minority shareholder in an unlisted company is not a happy situation, and it can happen - the takeover of Canary Wharf by Songbird Estates some years back is an example. It would have to be a very good company indeed for me to reckon it was worth risking that... * If the offer has reached the point where the bidder is compulsorily purchasing the remaining shares, I certainly accept - all hanging on any longer can do at that stage is delay receiving the money for another month or two while the legalities of compulsory purchase go through. As a holder via a nominee account, do I still get a chance to vote? No, because no shareholders get the chance to vote (that is, no Chieftain shareholders - Redhall shareholders do, because the acquisition is big enough relative to Redhall to require approval from their shareholders and not just their directors). You do get the chance to accept the offer - your broker will communicate with you and ask you to say whether you want to accept. They'll normally want a response by about a week before the "closing date" the company has announced for the offer - that basically allows them to collate the acceptances of their customers and get the total number of acceptances to communicate to the company, in good time to ensure that the company's date isn't missed. Don't take the phrase "closing date" too seriously. A bidder who thinks their offer has a decent chance of going through will normally extend it to try to get a higher level of acceptances and go unconditional - basically, all the first closing date means is "we won't declare the offer as having lapsed due to insufficient acceptances before this date". If the bidder extends the acceptance date in that way, your broker should tell you and give you another chance to accept. If they don't, then the offer hasn't gone unconditional and you wouldn't have got it anyway - unless your acceptance would have made the difference to meeting the acceptance condition. And if the offer does go unconditional, they've got to extend it for at least a fortnight. What happens then might depend on your broker - I think I've heard that some nominee brokers automatically accept unconditional offers on behalf of their customers unless given specific instructions not to - but whatever way it is done, you should get the chance to take the now-unconditional offer. Finally, for completeness, none of the above applies to a takeover done by a scheme of arrangement. That involves the company restructuring itself, in away that basically redeems the company's existing shares for a fixed price, using the funds supplied by the bidder, and reisuuing them to the bidder. It doesn't involve contractual sales between the bidder and the individual shareholders, so doesn't involve acceptances at all. It will involve conditions, and one of those conditions will be the passing of a special resolution by the company's shareholders - such a resolution is required because the company is doing something fairly drastic to itself. So a takeover done by a scheme of arrangement does involve a vote, which has to be passed with at least 75% yeses for the scheme to come into effect. And if it does come into effect, it is binding on all shareholders - i.e. it's a true vote, with failing to pass meaning nothing happens and passing meaning that all shareholders lose their shares and get the offered amount instead. But we're not dealing with a scheme of arrangement here, and so no vote by Chieftain shareholders is involved. Gengulphus |
Posted at 22/9/2008 10:53 by shanklin To try and get an idea of how much of CFT is held by people who visit ADVFN and TMF, I've posted the following poll at TMF, Responses welcome. Cheers, Martin |
Posted at 11/9/2008 12:10 by davidosh No worries there...I have not heard anything regarding any specific contract and the Teesside power station is one of many that they undertake so not at all significant by itself as this news story last year would confirm.They are still growing the maintenance division and the important underlying base must be that margins are not eroded to gain or retain business. The larger clients will also be keen to see continuity and security within a long term contract and although a small company Chieftain have a very strong balance sheet. They will probably pick up work from far weaker contractors in this market. You will note from the interims that CFT margins are improving considerably and I am looking forward to that continuing trend. |
Posted at 11/9/2008 10:23 by fivefive I think cft company RBC have lost the maintenance contract on Teesside power station. Can anyone confirm? |
Posted at 07/9/2008 13:49 by davidosh Naturally without the economic woes most small caps would be far higher and Aim stocks have been particularly badly hit. My own earnings model for CFT is admittedly bullish and factoring in possible contracts such as the aircraft carrier work which the management have merely mentioned carefully and certainly not in any way allowed into the forecasts or entered on the order books.For the full year 2008 I expect 53m in revenue and eps of 20p...then in 2009 I am hoping to see an uplift to 58m with nearly 23p of earnings. 2010 will be the big one if the tenders are confirmed and the huge contracts for the aircraft carriers kick in. An order book well past £100m for a tiny company with a market cap of £16m cannot be ignored for too long and the main directors who are not getting any younger and have large stakes may be tempted to cash in some chips. The long term visibility just gets better and better and the balance sheet stronger. The dividend should remain about 2.2 times covered so a nice return on the investment whilst we let the canny management do what they do extremely well. I have only held for just under five years but I fully expect a ten bagger including dividend returns on my initial investment and over seven years I am sure you will be equally rewarded if not more so.. |
Posted at 07/9/2008 12:46 by davidosh The stars are actually the management and hard working employees at Chieftain. It makes my life easy as a researcher, investor and commentator to see a company where the old fashioned work ethics are paramount and they just keep delivering good results. No fancy bonuses, no ridiculous option packages and this company certainly saw the hard times so even if they were not in such a great position right now I would still put my money on them to come out on top.As it is though I confidently expect some rather good news compared to the general market woes and CFT will stand out as a very nice investment paying a safe healthy dividend too. |
Posted at 01/9/2008 13:18 by veryniceperson Interim Announcement - September 2008Ex Dividend Date - TBA Record Date - TBS Dividend Payment - TBA I Wonder when? |
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