Crestchic Share Discussion Threads

[smithie6] 10/12/2022 15:59

btw

£33 million raised via share issues

£10 million total losses (!!)

selling for £110-120 million
is perhaps a good result.

at least the investors that put the £33 million to subscribe for shares will "on average" be seeing a good return.
(some share issues were done at >£4 .....so those subscribers will be booking a loss on those specific shares)

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the previous MD lost a lot of money if his options were deleted when he retired since he had about 1 million of 'em.
at £4/share that would have given him a big payment.

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Does the FD deserve a payment of about ~£1.2 million due to this takeover due to his options ?
By being the FD what did he do to deserve that ??!!
or just riding on the back of the workers doing loadbanks ??

(& imo he screwed up on the terms for the loan from Hardwood, the co. took on very bad conditions imo,
due to lack of experience or was the co. unable to get better terms anywhere else ??)

[dozey3] 10/12/2022 15:58

Smithie6 How can I make it simpler for you? Takeover bad news for small long-term shareholders because they won’t benefit from posited accelerated growth. Short-termers, Directors, traders, institutions - yes, scoop up the moolah and move on. Age of anyone irrelevant; directors act for all shareholders. Now £5 takeout I might be interested.

[smithie6] 10/12/2022 15:48

2016 AR says
"Peter Harris, aged 65, qualified as a chartered accountant having studied at Sheffield University. "

so, now it is 6-7 years later, so Mr Harris must be
71-72 years old.

5-6 years over the official age for being able to retire & receive a pension from the state.

so, he is definitely not 68 as you claim.

So, I am sure he will be happy to cash in his shares, as is reported in the RNS. (I would as well if I was 71-72).

Not as old as I thought. (in a old site visit he looked a bit gaunt & frail. In recent photos he looks younger & healthier now (my congratulations !) than he did in that old photo. If he has found/developed an age reducing drink, he could make his fortune !)

[smithie6] 10/12/2022 15:37

not sure I believe you !
...I will check ..

[zho] 10/12/2022 15:21

>>The boss at Crestchic (Mr Harris) is really quite old (75-80 ?)>>

Peter Harris is (a youthful) 68.

[smithie6] 10/12/2022 15:00

Dozey3

your post is completely illogical !
...while I agree that the text of the RNS is also completely illogical...

"....Crestchic, as a relatively small business, could accelerate its growth and shareholder value creation by combining with a significantly larger player in related global markets. ”
Does he not appreciate that present small shareholders will be deprived of this value creation"

I think we all agree that " combining (being bought !!) with a significantly larger player ...globally..."..." could accelerate its growth"

And hence the buy out makes sense for all the staff & their long term futures. But yes, the RNS is wrong to say that the resulting growth will benefit shareholders since after being bought out the current shareholders will have 0 stake & hence see 0 benefit !!

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If Aggreko did not buy the co. then Crestchic would not benefit from " combining with a significantly larger player in related global markets. ”

Your post infers imo that you do not see that point.

Could Crestchic have teamed with Aggreko as a partner rather than being bought by them ?
Definitely imo .
But it makes sense for Aggreko to first buy Crestchic.....& "then" help Creatchic to grow & in that way get a capital benefit to Aggreko rather than to external Crestchic shareholders.

I note that Crestchic has been around for years & has never imo managed to do a teaming agreement with a global company like Aggreko, not that we know know about anyway (not that I recall anyway) ; so, I guess that no global company wanted to do it.

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So, I perhaps agree with the point you would have liked to have made, but didn't.

I see where you are coming from about selling out & the price. The boss at Crestchic (Mr Harris) is really quite old (75-80 ?) & he surely wants to cash in. Harwood have been invested for some years, they are keen to cash in. Can't blame them.
Each shareholder can vote yes or no as they want. If less than 75% of the existing equity votes yes, then the offer gets rejected.

[dozey3] 10/12/2022 10:11

The Crestchic Chairman in recommending the lowball offer states “ However, the Board recognises that Crestchic, as a relatively small business, could accelerate its growth and shareholder value creation by combining with a significantly larger player in related global markets. ”
Does he not appreciate that present small shareholders will be deprived of this value creation. AIUT Aggreko is unquoted, so there can be no alternative to cash, and as a ltbh investor with an eye on IHT relief I feel somewhat miffed. (Tho deploying the cash is a problem many folk would wish to have.)

[alter ego] 09/12/2022 21:16

I also bought into NBI a long way back. See you at the next SRT AGM C5 - hopefully.

[countryman5] 09/12/2022 20:04

Chrestchic (NBI) was a good UK company. (PS insider buying yesterday afternoon, I have referred to TOP)). It has a Warren Buffet 'economic moat' with a global foot print. It lost its way in Australia together with a collapse in the oil market. I came on board at the IPO, many years ago. The price went to £6 in 2008 , so £4 has to be seen with some perspective. What should PI's do with the cash? Have a look at SRT Marine. This is another favourite of Simon Thompson of Investors Chronicle. It is the global leader in Maritime Domain Awareness.It has the Warren Buffet 'economic moat'. It is currently completing a £32 million contract with the Philippine government and is part way though a contract with a large ME country. (not allowed to name the country. CEO is Simon Tucker who is a dynamo. He owns several shares and has LTIP options pitched at £3 . (Current price 46 p). They are anticipating a $40 million contract with the Philippines coastguard and $180 million contract with Indonesia. They have a validated sales pipeline of £600 million. If you want to learn more, visit company website. Visit the news section and scroll down to the bottom until you find Investor webcast. I am expecting a takeover attempt when the next two contracts are in the bag but 50% of shares owned by a small number of PI's who will not be selling less than £3

[robertspc1] 09/12/2022 10:44

Sat on 200k shares, don't think there will be a counter bid but you never know

[zho] 09/12/2022 08:54

Aren't most of those 'buys' actually sells?

[gleach23] 09/12/2022 08:52

This morning's share price action hinting at more to come?

[danny500] 09/12/2022 07:45

yes thanks Paul

[charlotte2020] 09/12/2022 07:42

Thanks for your comments and well done for this one. Regardless I've made a tidy sum. Thank you

[robertspc1] 09/12/2022 07:38

Bingo... as predicted Aggreko came knocking. Great job Mr Harris

[brummy_git] 09/12/2022 07:37

Aggreko appears to have already secured 38.5% acceptances (re voting capital) for their 401p/share bid. So on face value this is probably a done-deal.

That said interestingly, there doesn't seem to be a 'break-up' fee either - ie in the event of a higher competing offer from a rival.

Hence I suspect the offer MAY simply act as the ‘starting gun’ of a POSSIBLE bidding war. To me at least, Aggreko’s 401p bid looks a little light, & contains no premium whatsoever.

Sure it’s a nice Xmas pressie - & investors shouldn’t ever look a gift horse in the mouth especially given today's bear market (re birds & bushes).

Yet equally I’d be surprised if a few other parties don’t also run the slide rule over the deal.

Time to be patient.

[solarno lopez] 09/12/2022 07:14

That's a nice start to the day

[bigbigdave] 09/12/2022 07:12

401p, a penny more than we thought :o)

[ayl30] 09/12/2022 07:12

38% acceptance signals it was well stitched up

[bertiebingo] 09/12/2022 07:05

Which is illegal so didn't happen

[davidosh] 09/12/2022 01:55

I am sure Brummy Git will be commenting on this rumoured deal on the MelloMonday show as he is presenting on it this coming Monday...

[liam1om] 08/12/2022 23:24

What a terrible price. With the way this was heading we would be at 400 within the next few months anyway. Why agree to such tight deal?

[smithie6] 08/12/2022 23:05

Charlotte & other holders

Normally what happens is that any agreement Aggreko has from Howard & any other big holders (Artemis ?)to buy their shares at a specific price, eg. 400p/share normally includes a get out clause that gives the seller the right to cancel the sale to Aggreko if there is a higher offer from another bidder. So, no need to panic imo, if Ashtead or some other co. is interested to make a higher offer, normally it is possible. The main contenders are surely other big generator hire companies operating in the USA or globally.