Cip Merchant Capital Share Discussion Threads

[pavey ark] 17/1/2022 14:41

Still not clear as to where we are here....if the price drops below 55p can they pick up more then make another offer of 55p but keep all the acquired shares....and so on !!!

What is their exact position regarding future share purchases or future offers to buy when holding 31% ??

[skyship] 17/1/2022 13:18

Could well be; but CFE arguing over pennies does seem rather stupid. Get the job done with just a small uplift would surely be the sensible thing to do.

[pavey ark] 17/1/2022 13:06

Can anyone clarify the situation here ?

They're not going to get 50% for 55p so they stick at 31% or do they have to reduce to under 30% ?

I agree with SKYSHIP......they are not getting control for 55p so what is their game ?

Obviously an increased offer of say 60p would stand more chance so is this silly offer just a ploy to make 60p look good when it comes ?

[dekle] 17/1/2022 11:16

If CFE can see value in this business why can't everyone else?

[skyship] 15/1/2022 15:48

dp - yes, had a letter & email debate with Collins on exactly that - got nowhere, total stonewall stating that they were merely continuing with a fee structure as set out in the prospectus. This in spite of the fact that the prospectus also targeted a return of 20%pa!

Collins blatantly has his eyes on his fees rather than his duty to represent shareholders. At least one good outcome here will surely be that his personal gravy-train here will hit the buffers.

Incidentally - O/T - did you see PIN last week? I bought back in on Friday's pullback. They are now anomalously cheap versus peers. 327.5p provides a 22.2% discount; so the only one now at more than 20%. Also took out a CFD - saves the stamp duty!

[donald pond] 15/1/2022 14:39

No, but he's chairman of Liontrust so I imagine he is a city grandee type. Falla and King are the Guernsey nodding dogs. I've no holding here but a letter to them, copied to the GFSC, highlighting in particular the egregiousness of charging fees on cash and questioning whether they acting in accordance with their duties may make them think again

[skyship] 15/1/2022 14:05

Our appalling Chairman, Adrian Collins, is a classic case of poor CI governance.

Ever come across him DP? Though for all I know he really lives in London or the Home Counties rather than sheltering in Guernsey.

[donald pond] 15/1/2022 13:47

I can only assume that Guernsey are once again letting the CI down

[shaker44] 15/1/2022 12:47

I am also an ex c I director and I can assure you that 'bad governance' is overlooked. So many examples in aim c I companies.

[donald pond] 15/1/2022 12:37

As an ex CI director I can absolutely say that isn't true. It's bad corporate governance but you could find it anywhere.

[shaker44] 15/1/2022 12:31

Yes. the light touch regulation in C I pretty Much gives directors free reign.

[pavey ark] 15/1/2022 11:35

Skyship, thanks for you efforts here.I am having a similar battle with ARTL....sitting on a massive cash pile and taking 2% +20% performance fee....have done nothing for 18 months but now have bought £8.5m of property funds yielding 5-6% but taking 2% for themselves.At least their long term performance has been good but ....again...a Channel Island setup.......something to consider with future investments ?

[hpcg] 15/1/2022 11:02

Other largish shareholders may come in and say they'll deal at some price which is above the last deal but still acceptable to SFE.

[hpcg] 15/1/2022 10:55

My reading is that they pitched the mandatory offer at the lowest price they could because they don't want to take over the company, or perhaps at the same time, they don't want to spend any more on shares than they have to. That said I will probably accept for a 10% loss over a 3-4 month holding period. I have better things I can do with the cash, and it is less than a 1% holding for me; I never had the confidence to increase my holding lower. That said I'm not sure there will be may acceptances. If ST says don't accept then I would say for sure it won't. I bought at 61p.

[dekle] 15/1/2022 10:52

Can’t disagree with that

[skyship] 14/1/2022 21:02

Intriguing. Wonder what Simon Thompson will have to say about it.

Obviously not a serious offer and surely they don't expect many acceptances at such a paltry level.

So what are they really up to I wonder. I don't see a white knight here as who would want to go to the expense of bidding for such a ragtag of assets.

SFE are stuck with their holding; so surely best to make a more sensible offer, win it, liquidate it and move on. So pay a little more and get the thing done; but 55p - NO WAY!

[ntv] 14/1/2022 17:26

valuehound
I got excited that there was an offer until I read it
I only hold 10k so nota life changer lol
HSS has risen a lot recently but their largest holding has dropped again
I wonder if they bought anymore HSS when Tosca sold out
Ravensworth now hold 29.5% there so interesting situation

[ntv] 14/1/2022 17:22

I guess they are thinking they will eventually gain control slowly but surely or they will flush out a higher offer. A win win situation for them really

[value hound] 14/1/2022 17:12

You're correct dekle - and so will I.

I got all excited when I saw the RNS as I mistakenly read 65p and "offer" :-/

[dekle] 14/1/2022 17:07

It's not a mandatory takeover, it's a mandatory bid as I understand it. The offer price needs to improve or I will vote against it.

[octaviab] 14/1/2022 17:06

I wish CFE would stop making derisory offers and just make a reasonable one. Do they think other shareholders are unaware of the NAV?

[value hound] 14/1/2022 16:27

55p mandatory takeover - not much of a premium - imagine this will cause outrage??

[skyship] 14/1/2022 09:03

NTV - with that volume yesterday it would certainly seem so. RNS awaited...as will be a return of HSS to the 20p level.