Ecofin Water&powr Opportunities Share Discussion Threads

[orinocor] 13/9/2016 18:57

EXPECTED TIMETABLE

Latest time and date for receipt of Forms of Proxy or CREST Proxy 10.00 a.m. on 9 September Instructions from Shareholders in respect of the First General Meeting
Latest time and date for receipt of Forms of Election or 1.00 p.m. on 9 September TTE Instructions from Shareholders

First General Meeting 10.00 a.m. on 13 September
Shares disabled in CREST(1) 6.00 p.m. on 13 September
Record Date 6.00 p.m. on 13 September
Calculation Date 6.00 p.m. on 13 September
Date from which it is advised that dealings in the Shares should only 14 September be for cash settlement and immediate delivery of documents of title

Latest time and date for receipt of Forms of Proxy or CREST Proxy 10.00 a.m. on 19 September Instructions from Shareholders in respect of the Second General Meeting
Announcement of the Cash Fund Cap and the number of Shares 19 September 2016 to be reclassified as Shares with “A” rights and Shares with “B” rights

Ordinary Shares reclassified as Reclassified Shares in the Official 8.00 a.m. on 20 September List and dealings in Reclassified Shares commence(2)

Suspension of listing of Reclassified Shares and Company’s 7.30 a.m. on 21 September Register closes

Second General Meeting 10.00 a.m. on 21 September
EWPO Scheme Effective Date and Transfer Agreements executed 26 September and implemented

CREST accounts credited with Ecofin Global Shares and 26 September EF Realisation Shares

Cheques expected to be despatched and CREST payments made week commencing to Shareholders in respect of Elections for the Cash Exit 3 October

Certificates despatched in respect of the Ecofin Global Shares and week commencing the EF Realisation Shares held in certificated form 3 October

Cancellation of listing of Reclassified Shares on the Official List(2) by 31 October
(1) For the avoidance of doubt the Company’s Register will remain open until the EWPO Scheme Effective Date.
(2) Reclassified Shares are a technical requirement of the EWPO Scheme and will be created if the resolutions to be proposed at the First General Meeting are passed and become effective.
Each of the times and dates in the expected timetable may (where permitted by law) be extended or brought forward without further notice. If any of the above times and/or dates change, the revised time(s) and/or date(s) will be notified to Shareholders by an announcement through a Regulatory Information Service. All references to times in this document are to London time.

[orinocor] 07/9/2016 11:19

I broadly agree with Ganthorpe but I don't understand why people are saying cash returned is 50% of 139.24p when the circular says in plain English its 50% of the EWPO net asset value. But whatever, it not a biggie, still on target for a 5% return in a month.

[neilyb675] 07/9/2016 10:39

Opted for default option 1, I.e. Holdings in 2 companies post EWPO ceased trading.

[ganthorpe] 07/9/2016 09:47

I reckon there should be a reasonable margin over the current price although the amount of discounts on the new shares are critical.
Rough calcs
Cash 50% 139.24P = 69.5P
Rump 25% of 83P less 33% = 14p
New Eco 50% of 139p less 15% = 59p
Total comes to 142.5P say 140P
Of course likely to be a lot of selling when it all goes through.
Just another set of guesses

[rjmahan] 06/9/2016 20:41

Why is the shareprice falling so much ?

[flyfisher] 05/9/2016 17:06

SpectoAcc, I quite agree with you that ECR may trade at a bigger discount.

Everything has its price however and with todays fall in price I see a fair risk/reward at 127p and have taken a holding, with the intent of tendering 50%.

[orinocor] 05/9/2016 07:38

no I read that. It's the way you worded it in your previous post that confused me.

[flyfisher] 05/9/2016 07:26

orinocor, From the prospectus.

Based on the estimates and figures set out in Part I of this document and for illustrative purposes only, had the calculation date for the EWPO Scheme been 17 August 2016, for every 100 Shares held, a Shareholder will receive securities and/or cash with a total value on the calculation date of £160.08 as follows:

25 EF Realisation Shares with a net asset value of 83.41p per EF Realisation Share;
up to 100 Ecofin Global Shares (subject to the level of Elections for the Cash Exit made and accepted) with a net asset value of 139.24p per Ecofin Global Share; with – the option to receive 139.24p per Share in cash, in lieu of receiving Ecofin Global Shares on a one for one basis, for up to £80.04 or such greater amount subject to scaling back of Excess Elections.

[spectoacc] 04/9/2016 20:25

Yes - though if everyone does it..! But a positive that they upped it from 35% to 50% - clearly a reasonable number are optimistic about ECG and would like to stay in. Could be a bit of volatility at first when those only in for the tender sell out again, may well be the time to buy.

[flyfisher] 04/9/2016 20:00

Yes indeed, half of new ECG in cash, and that will be at the new ECG nav, which looks to be in the 134/135p range, after expenses. I am also unsure of the £5m prefs referred to in the prospectus, are they new or being rolled over from ECWO.

Allowing for a 50% tender of ECG at 135p and the discounts previously mentioned gives a potential gain of around 7% on the deal using my assumed discounts, but their isn't much of a safety margin for the issues to trade at a bigger discount.

The lure is in tendering all and hoping to get in excess of 50%.

[spectoacc] 04/9/2016 19:38

Agreed @flyfisher, though I think the discount may be slightly wider on ECG - yield nothing special, and at least ECWO's 16% discount included a big wad of cash.

The calculation for me is more "half of it back in cash at NAV", and how big a discount will the remainder be on. Might be an argument for more like ~50% on ECR, particularly if illiquid, but then it's not an even split with it & ECG.

[flyfisher] 04/9/2016 17:56

Enlighten me.

[orinocor] 04/9/2016 16:32

I broadly agree with your 10% discount and 30% discount estimates but aren't you missing something rather important?

[flyfisher] 04/9/2016 11:08

The investment case here seems to rely on the discount to nav narrowing after the split and cash payout, as the cash redemption and the zdp issue are both at nav, they will both be neutral to the nav calculation.

What price can we expect ECG and ECR to trade at post split.

ECG is to be a leveraged utility fund offering a 4% yield, its peer Premier utility fund runs at a 9% discount, so it may seem reasonable to expect ECG to trade at a similar discount, say 10%.

ECR is set to be in a 2 year wind up, we have several examples of similar situations in the market, CDI springs to mind, it looks like a larger discount would be more appropriate to reflect the inherent risk and lack of yield. In this case I would expect about 30% discount to nav.

So it looks to me that the current discount to nav of 16% is likely to narrow slightly to a weighted average discount of about 14% post split when trading settles, an interesting situation, but not a compelling trade.

[orinocor] 02/9/2016 11:27

I'm in at 132p today. I'm well up for a 5%-10% return in 1 month.

[neilyb675] 30/8/2016 11:14

Nice copy / pasting.

[orinocor] 30/8/2016 10:51

The answer is YES

ISAs and Junior ISAs
Ecofin Global Shares and EF Realisation Shares are eligible for inclusion within a stocks and shares
component of an ISA or Junior ISA.
Accordingly where Shares are currently held within an ISA or Junior ISA, Ecofin Global Shares and
EF Realisation Shares obtained pursuant to the EWPO Scheme in respect of those Shares can be
retained, subject to the specific terms applicable to the ISA or Junior ISA.
Any cash received under the EWPO Scheme may also be held within the ISA or Junior ISA pending
reinvestment, subject to the specific terms applicable to the ISA or Junior ISA.
Shareholders who hold their Shares within an ISA or Junior ISA should, before making any Election,
consult with their plan manager as regards their own position.

[orinocor] 30/8/2016 10:46

Does anyone know if there are any ISA implications regarding this reconstructions. Will the new shares be automatically inserted in your ISA? TIA

[spectoacc] 25/8/2016 15:49

@Neily - I'd assumed it was posted twice with different missing letters, and if you merge them together you get the whole? (Seemingly not) ;)

[neilyb675] 25/8/2016 15:46

ganthorpe

appreciate you trying to make some sense, but your post is almost impossible to decipher with joined up words and missing letters...!!!

[ganthorpe] 25/8/2016 15:14

A few rough calculation ad estimates after browsing the circular. For every 1000 shares ow
Will get
500 sharestederedforcash. 139p 69.50
25rump illiquid asset value81p say worth60p. 15.00q
50 shares new company 139p say worth 120p 60.00
Est total retur 144p
It all depends o the values you put on the ew shares. I read somewherethattheywere aiming fora 3percent yield presumably based on asset value. O idea if any divi o the rump sharesbutotsignificat.
Dyor

[ganthorpe] 25/8/2016 15:14

A few rough calculation ad estimates after browsing the circular. For every 1000 shares ow
Will get
500 sharestederedforcash. 139p 69.50
25rump illiquid asset value81p say worth60p. 15.00q
50 shares new company 139p say worth 120p 60.00
Est total retur 144p
It all depends o the values you put on the ew shares. I read somewherethattheywere aiming fora 3percent yield presumably based on asset value. O idea if any divi o the rump sharesbutotsignificat.
Dyor

[hpcg] 17/8/2016 10:11

Rob - you are completely correct. I think I only ever read as far as rolled over, not rolled over into Ecofin Global shares as the documentation clearly says. So the ZDP actions are a wash no matter how many or how few have chosen to stay invested.