Chrysalis Investments Share Discussion Threads

[foetus in your brain] 26/9/2024 13:38

Buying now looks a no brainer to me

[craigso] 26/9/2024 13:36

The Company has engaged its joint corporate brokers, Deutsche Numis and Panmure Liberum (the "Brokers"), to implement the share buyback programme on its behalf over time. The maximum price payable for a share will be an amount equal to the higher of:

· 105 per cent. of the average market value of the Company's shares for the five business days immediately preceding the day on which such share is contracted to be purchased; and

· the higher of the price of the last independent trade and the highest current independent bid on the LSE.


The 105% part looks to me like carte blanche to hoover up shares in a week or two, once yesterday's price falls out of the 5-day period...

That RNS from yesterday re. the debt facility is going to make a nice little extra profit. :)

[rimau1] 26/9/2024 13:19

Featurespace confirmed sale, buyback launched with further buyback on completion of Featurespace sale. Let the rerate begin. With klarna on the horizon we should be back over 1.00 IMO narrowing the discount to the mid 30's

[davebowler] 25/9/2024 13:30

hTTps://portfolio-adviser.com/chrysalis-preps-for-100-share-buyback-with-new-loan/

[craigso] 25/9/2024 07:59

Exactly. Buying back shares before lots of good news is a savvy move.

The expected Featurespace proceeds can be set aside to repay the loan facility in a year. But if they wait for the actual Featurespace cash before increasing the buyback, the share price might have already spiked on news of a major IPO (Klarna I'd guess).

I think it might be time to add to my position...

[kooba] 25/9/2024 06:19

Well the share buyback can start pretty quickly once they have the facility money.Guessing they are aware of realisations ( Featurespace ?) but that could take a few months for any such deal to complete and there be cash available so they want the flexibility to start buying back shares at the current discount levels...especially with potentially more value accretive news on possible IPOs on the horizon.Positive for sentiment and should underpin the share price and lead to a narrowing of the discount.

[kooba] 23/9/2024 14:26

For personal awareness and that it comes from Starling Bank and seems to overlack on the deep instinct use AI to combat AI fraud. https://www.theguardian.com/money/2024/sep/18/warning-social-media-videos-exploited-scammers-clone-voices

[kooba] 23/9/2024 14:18

Interesting interview on deep instinct from a couple of weeks ago...interesting holding when there is rumoured m&a activity in the cyber sector.https://www.unite.ai/yariv-fishman-chief-product-officer-at-deep-instinct-interview-series/Seems a decent recovery coming threw in another holdinghttps://www.cityam.com/secret-escapes-post-pandemic-demand-helps-significantly-cut-loss/

[kooba] 20/9/2024 18:33

Well the new ceo wouldn't be boarding a sinking ship in my view I would expect they got comfort on shareholder support and funding..Hartigan I'm afraid seemed to have motives which were not aligned to all shareholders from what I can tell. If the restructuring gets done and the company refocused on the profitable areas there could still be significant value within a year or two I hope. It has now been marked down significantly and has much less an impact on CHRY overall. Fingers crossed the Featurespace deal gets done...much greater bearing short term.

[peterrr3] 20/9/2024 18:14

Hartigan was asleep on watch or just plain negligent in oversight to create this mess. Given that can you really be sure it is viable as they need recapitalisation in a few weeks. The Arabs didn't see value in bailing it out last time. The only one further out of pocket is CHRY who foot almost the whole bill.

[kooba] 20/9/2024 08:31

Wefox news.https://www.reinsurancene.ws/wefox-hires-joachim-muller-from-allianz-as-ceo-mark-hartigan-to-continue-as-chairman/Seems a good hire and doubt would be taking the role unless they saw a future.Wefox now needs a new Chairman !

[kooba] 20/9/2024 08:13

From shop research"IP Group has an effective interest of just over 20% in FeatureSpace whilst Chrysalis owns just over 11%. Based on the speculated purchase price, IP Group could receive gross proceeds of £137.5m whilst Chrysalis receiving c£83m. This compares to carrying values of £112.7m for IP Group (just written it up by more than 50% in H1 2024) and £74m for Chrysalis, respectively."For Chrysalis the conversion to cash clearly more important right now than the relatively small uplift. With current cash balance approx £50m.( we had £62m pre e15m into Wefox) we should see the majority of this disposal if it materialises returned to shareholders. There are just under 600m shares in issue so approx 100m to buyback. Could be done slowly as an on market buyback or they could look at a tender at a premium..Ie offer 100p for 14% of shares outstanding.Either way it would be value accretive to remaining shares."The company will aim at all times to maintain a prudent cash reserve – the board and portfolio manager guide that an appropriate cash reserve is currently believed to be £50m;Having met the cash reserve requirement, the company will next prioritise distributions to shareholders – the board currently intends to utilise its existing authority to buy back up to 15% of its share capital and, if required, seek further authority from shareholders to continue share buy backs until £100m of cash has been distributed, conditional on the ongoing discount; andThereafter the company will balance its capital allocation between further distributions to shareholders and portfolio investments, aiming to distribute up to 25% of net cash profits on realisations."

[mark5man] 20/9/2024 07:26

Agreed - a good start to a period which should be full of interesting news. Hard cash and a 40% discount make good companions

[rimau1] 20/9/2024 07:08

74m net cash incoming, very excited about finally triggering the buybacks and closing this silly discount to nav. We still have Klarna to come early next year.

[kooba] 19/9/2024 16:31

https://news.sky.com/story/london-listed-funds-land-200m-from-lynch-backed-featurespace-13217910

[davebowler] 09/9/2024 10:34

Investec commentary on AGT-confirmed it had sold its 16,165,250 shares.Aberdeen European Logistics Income (ASLI) – In Wind-Down.NT Lease Office Property (NLOP) – In Wind-Down.Chrysalis (CHRY) – We note AGT recently announced a holding >10% in CHRY. The second part of CHRY's Capital Allocation Policy, which is dependent on further portfolio realisations is to return £100m to shareholders via share buybacks. Klarna is expected to IPO in Q1-25 and Visa is reportedly in negotiations to acquire Featurespace.

[kooba] 05/9/2024 08:00

Slightly difficult to know on the increased investment...with the interims 28th June stated · In the normal course of business, a valuation of the portfolio, including wefox, will be performed as at 30 June 2024 during July and published at the end of July. That valuation will take account of the proposals for how wefox may go forward, which we expect to be at a more advanced stage by then.· If negotiations conclude prior to our 30 June NAV being published in July, we will consider whether it is appropriate to update shareholders on any impact on the carrying value of wefox.So the £60m was the figure for the holding given end at end of July for 30th June but after the refinancing took place. So the valuation is based on the refinancing but the increased investment is not?You are probably right though they have stated it was post event so a slightly larger exposure...unfortunately their confidence in the funding was not warranted by the sounds of it..especially as they were the cornerstone investor."Having committed further capital to wefox post period end, amounting to approximately €15 million, the Investment Adviser does not expect this asset to require further material funding. "

[peterrr3] 05/9/2024 07:16

Chrysalis had to fund 75 percent of the bailout last time, you would have to think this time is no different unfortunately.

[peterrr3] 05/9/2024 06:56

I thought they put in £15m after the £60m revaluation.

[kooba] 05/9/2024 06:24

The holding in Wefox has been marked down aggressively in the last update and is far from being as important to the overall NAV now.In last update valued at £60m 7% of assets.So whilst not great if it continues to talk about failing the impact on CHRY is now far more limited now.With graphcore sold and hopefully featurespace nearing monetisation seems far more important in terms of strategic delivery for now and a commencement of return of capital.

[peterrr3] 05/9/2024 06:12

Thanks Rogen for the heads up

[rogen83] 05/9/2024 06:08

hxxps://news.sky.com/story/amp/insurer-wefoxs-board-sounds-fresh-alarm-over-possible-collapse-13209649

[kooba] 05/9/2024 05:46

On AVI they only have to announce moving above 5% and then 10% so they moved above 5% in March this year and then moved above 10% last month. So they have had months to accumulate to get above 10%. They now would have to announce any further 1% movement.They have an activist reputation but the company got backing for its continuation and capital distribution strategy not that long ago so maybe limited what they might be able to achieve here..but clearly see value."In the United Kingdom, investment and fund managers must disclose holdings in UK issuers at 5% or higher of the issuer's total voting rights and capital in issue. They must also notify when their holdings reach, exceed, or fall below 10%. Once holdings reach 10%, the exemption no longer applies, and disclosures are required for every 1% increase or decrease above this threshold"

[kooba] 05/9/2024 05:33

Wefox needs more money..so gets some headlines.https://news.sky.com/story/insurer-wefoxs-board-sounds-fresh-alarm-over-possible-collapse-13209649