Conygar Investment Share Discussion Threads

[grahamburn] 14/12/2012 10:06

Skyship/Gary. As noted (albeit indirectly) in the announcement reproduced in 818, shares held in Treasury do NOT have voting rights - ie the issued share capital excludes shares held in Treasury but is the same number has total number of voting rights.

Not 100% certain, but believe that shares held in Treasury can be used to satisfy exercised share options.

[gary1966] 13/12/2012 20:55

Skyship,

My understanding is that they can be sold back into the marketplace to raise funds if they wish. Vodafone are in a similar situation and in their case they waive the right to divi's and possibly/probably voting rights as well. Think of them as retired but if things aren't going well or an opportunity too good to refuse comes along then they can be brought out of retirement.

Looks a very interesting play and wish I had spoken to Tilts yesterday as I now have no funds having bought JPEL.

Gary

[skyship] 13/12/2012 13:52

Incidentally, the second para of yesterday's buyback RNS states:

================================================================
In conformity with Disclosure and Transparency Rule 5.6.1A, Conygar advises that, at the date of this announcement, the Company's issued share capital comprises 90,371,304 Shares (excluding 23,117,819 Shares held as treasury shares). Therefore the Company's total number of Shares with voting rights is 90,371,304.
================================================================

Does anyone know why those shares held in treasury have not yet been written off? Surely they wouldn't/couldn't think they might be able to re-issue them. Must be some accounting reason of which I am unaware.

[skyship] 13/12/2012 13:24

Hmm - I was one of the many to be truly shafted by that low-ball offer for TAP. A good profit; but should have been a whole lot more.

I agree, an MBO looks the most likely eventual outcome here; though where he raises the debt will be an interesting aspect of the bid.

Still, I think these are cheap without a bid. The MBO prospect is just another bullpoint in the Risk/Reward analysis...

[horndean eagle] 13/12/2012 12:31

As has been pointed out before the management will be very keen to get the nav discount narrowed pretty damn quick in order to get their bonuses back on the road. Ultimately I think Robert Ware will look to do a buyout here once him and connected parties have a holding large enough. Hes done it previously with MEPC and also managed to screw over shareholders in TAP. Ideal time for him to try it would be before the waterfront developments are revalued. Sometime next year wouldn't be outlandish.

[ursus] 13/12/2012 11:16

The virtue of this form of tontine is that you don't have to wait for your fellow investors to die - they merely need to sell their shares into the company treasury. Then just you and Robert Ware will be left to divvy up the assets...

But what do you make of Ware's transfer of shares to his children? Will we soon see them on the market, perhaps even bought back by the company? I sincerely hope not.

[skyship] 13/12/2012 07:25

87p was still a great price surely - well done you. As for Tilts, well I'm always resigned to the fact that he'll buy/sell at better prices as he can go onto the book - roll on DMA for we mere mortals!!!

I love that Tontine thought posted by Ursus. DVI - if you're under 40 double up now and wait for the rest of us to topple off the perch.......

[deepvalueinvestor] 12/12/2012 19:52

I'm gutted, I was going to fill my boots again at 86p this morning but the company got there first! I picked up some at 87p but not enough. Well done tiltonboy for going on the board when they dropped yesterday. The buyback strategy and low dividend makes this particularly attractive for the 40% or 50% taxpayer. My sort of stock!

[skyship] 12/12/2012 13:39

Share buyback of 2.46m shares at a cost of £2.1m. So the adjusted NAV now equals 168p. Buy @ 89p for a 47% NAV discount...with hopefully a large Haverfordwest uplift to come!

[skyship] 12/12/2012 13:18

URSUS - Yes, a good thought:

A tontine is an investment plan for raising capital, devised in the 17th century and relatively widespread in the 18th and 19th. It combines features of a group annuity and a lottery. Each subscriber pays an agreed sum into the fund, and thereafter receives an annuity. As members die, their shares devolve to the other participants, and so the value of each annuity increases. On the death of the last member, the scheme is wound up. In a variant, which has provided the plot device for most fictional versions, on the death of the penultimate member the capital passes to the last survivor.

Reckon I'll top-up now and then outlive the lot of you!!!!!!!!!!

[skyship] 12/12/2012 13:15

Repurchase of own shares

Conygar announces that, in accordance with the terms of the general authority to make market purchases of its own shares granted to it by shareholders of the Company on 5 January 2012, and following the announcement on 5 December 2012, the Company acquired for cash in the market 2,459,838 ordinary shares of 5 pence each in the capital of the Company ("Shares") on 12 December 2012 at an average price of 85.52 pence per Share. The acquired Shares will be held in treasury.

[ursus] 12/12/2012 12:04

This level of buybacks at such a discount makes the share into something of a tontine...

[skyship] 12/12/2012 10:49

Today's trades suggest we may just have seen the next 4m buyback at a lowly 85p. Nicely accretive to NAV - would add c£3m - c3.3p/share

[sleepy] 11/12/2012 17:01

Anyone interested in Conygar might also like to take a look at Inland Homes

[skyship] 11/12/2012 16:52

86p, that's a 48% NAV discount even before any future Haverfordwest effect. Another fund rather belatedly exiting the scene & upsetting what was beginning to look like a rather good move away from the lows. No matter, roll on the buybacks...

[tiltonboy] 11/12/2012 14:57

Put a bid on the board at 86p, and got shovelled in instantaneously.

[skyship] 06/12/2012 09:17

Precisely; and it looks as though the wide discount is set to move W I D E R thanks to further asset gains from the development programme.

IMO however the discount will reduce as the Company has to pay up for those extra 4m buyback shares...

The loss on the LSR investment is pretty small beer; but it is interesting to note that even acknowledged property experts can totally screw up when deciding on the right share price for a quoted competitor! I think CIC & the IC were the only buyers of that stock...

[topvest] 06/12/2012 08:27

Keeping a watch here for a possible top-up. I've been critical in the past, but their performance remains reasonably good on NAV, given it started life at 50p 9 years ago and is now 167p, particularly given we have been through a major provincial market real estate bust. Directors have done well taking £14m in remuneration over those 9 years, but investors should ultimately do reasonably well as long as they buy on a wide discount.

[skyship] 06/12/2012 07:54

Yes....XD 1.25p yesterday

[badtime] 05/12/2012 22:36

Or I guess you could ay it underpins it.....I c I have missed the small div

[badtime] 05/12/2012 22:29

Immediate question sky ....company has bought back 7 million to date....has this just merely propped the share price up?

[skyship] 05/12/2012 18:55

Hi BT - yes, time to be back in these I would say. Re-invest that LMS cash before the Company starts those buybacks - you may have the chance to get in under the radar if you act quickly!

[badtime] 05/12/2012 18:12

Might buy as few of these

[skyship] 05/12/2012 16:55

5 December 2012

The Conygar Investment Company PLC

Extension of Share Buyback Programme

Further to the announcements on 7 June 2012 and 17 September 2012, the Board of Conygar has decided to increase the size of the Buyback Programme by an additional 4,000,000 ordinary shares of 5 pence each ("Shares"), taking the total maximum number of Shares to be acquired under the current Buyback Programme to 11,500,000 Shares. Conygar has purchased a total of 7,320,000 Shares to date pursuant to the current Buyback Programme.

[smarm] 04/12/2012 19:24

Thanks Skyship....I bought a few and will add on any momentum.

S