Ediston Property Investm... Share Discussion Threads

[chucko1] 09/1/2024 14:08

Well, ii are clearly conservative and have shown as much in, for example, their attitude towards "suitability" of investments for retail. Being part of Abrdn, one can join the dots.

It is more than a disservice - are they not giving investment advice? Arguably, I agree.

2.5% base rate, anyone? (different department, but culture is in the walls).

[spectoacc] 09/1/2024 13:53

Tiny chance only I agree, and the same tiny chance as any other day, so the only reason for the fall today is surely the one or two brokers doing their clients a major disservice by implying the full proceeds will be taxable.

Isn't a single trade I can see today above 69p, & eg the seller of 132k at 67.25p earlier is giving away some free money.

[chucko1] 09/1/2024 12:12

Specto, you are right. They are indeed sold.

Theory moves back to retail selling for various reasons, some of which have little logic.

In which case I really cannot see the vote failing! What are the possible reasons for hedge funds (or others) to want a cash shell? If it were a bank, then yes, but this one has zero regulatory benefit (it is not a REIT anymore, anyway).

[spectoacc] 09/1/2024 12:02

@Freddie - poor advice from iii. Why sell for less than the 69p?

@chucko1 - "In theory, it would be better in the medium term". How? The RP's are all long since sold/completed. What discount on the cash shell, say 20%? Higher, I'd say.

Fwiw and very small sample but couldn't park at the weekend at local RP, and again backing up onto road at another. Great place to be, if only there was a vehicle where we could invest in them...

[feddie] 09/1/2024 11:38

Just off the phone with II. They confirmed that the shares will be moved from ISA to Trading account upon delisting and that any liquidation payment will fall outside the ISA. He suggested to sell.

[chucko1] 09/1/2024 11:26

Yes, if the vote doesn't pass, then minor mayhem. Hence reticence to go large on this. That said, subsequent to announcement to liquidate, market has recovered somewhat and rate are not any longer on an "avoid risk" trajectory. In theory, it would be better in the medium term, but I cannot see the vote failing, unless that is why the hedgies have been piling in.

[spectoacc] 09/1/2024 11:16

Can agree re the initial, but the subsequent distributions aren't yet declared so can't go ex before delisting.

Surely small enough not to be a bother, but ironic if you'd held EPIC from higher in ISA. A non-deductible loss realised, then a small "gain" on the final distributions.

[ec2] 09/1/2024 11:05

As I see it from the meeting documentation:Record and Ex Date for the liquidation payment's entitlement is 6.00pm on 10th Jan 2024. Cancellation of listing is 8.00am on 12 Jan 2024. Therefore shares should not be transferred out of ISA until after they have gone ex for the distributions. My humble interpretation is also that the one record date counts both for the initial and also subsequent distributions. When I received the note from ii yesterday it also gave me an initial fright before I went back and read the voting docs.

[spectoacc] 09/1/2024 10:57

Always the tiny chance the vote doesn't pass on Thurs - what happens then? They need a fairly hefty 75%.

[chucko1] 09/1/2024 10:55

Yes. IRR of this trade, if successful, is 115% (assuming vast majority of funds back in max 2 weeks).

Seems rich indeed, but that is just arithmetic trickery and for a two week period, you would need at least 50% IRR given the current so-called "management".

I still have little idea what the HFs were thinking of - that IRR trade (14% or so that I talked about a few months back) lost its lustre very quickly as the overall market provided far superior opportunities post November sell-off.

[spectoacc] 09/1/2024 10:47

Couldn't get quoted in any size, but I see 100k uncrossed at 66p at open.

69p back fairly rapidly but the "6-9 months" for the rest will doubtless extend - they all seem to.

[chucko1] 09/1/2024 10:46

HL have merely warned of the risk of the lack of liquidity. 68p to buy plus stamp duty = 68.34p but with likely 70.38p return. 5 days post delisting is when cash is due to be returned (69p of it, anyway).

Bought a few. Tried buying more but market moved.

Ah - moved back and bought more.

[spectoacc] 09/1/2024 09:39

Not in EPIC now but have had similar before - I think they transfer out at market value, eg 68p, so only an extra 1p, plus the final distribution, would be a taxable CG.

Edit - iii say certificated, but I thought share certs were being abolished?

[feddie] 09/1/2024 09:29

II added the following to the liquidation "Corporate Action" notice:

"ISA Customers
Due to restrictions imposed on ISA accounts, unlisted shares are not considered an ISA-qualifying investment. Therefore, we will arrange to move your Ediston Property Investment Company plc shares to a linked trading account, opening one on your behalf if you do not already have one. If that is not possible, we may attempt to withdraw the shares into certificated form, reregistering them into your own name. Certificates received in respect of ISA accounts will no longer be held within the tax efficient wrapper, so will lose any tax benefits"

This seems to indicate that the 69p first distribution would be paid out of an ISA, which would be a shambolic result for ISA holders. Any thoughts?

[hindsight] 05/1/2024 12:24

Good question and they are not alone
No idea what premium cash shells are worth to PE at present

[nickrl] 05/1/2024 08:51

Millennium International Management run up a big hedge holding whats in it for them?

[fred177] 04/1/2024 16:20

what is going on with the sale proceeds payout to shareholders here? i thought it was due by end of September?

[williamcooper104] 22/12/2023 09:10

Real shameIn 12 months time there was every chance this would have been trading at NAV and could have raised equity

[nickrl] 22/12/2023 09:06

So from interim results i see they've had to spend 3.87m of our money to dispose (give away) our company although they kindly tell us 390k of it was on the strategic review.

Then there was this statement "The blended rate on the debt is 2.91%
and the interest rates obtained in the interest-bearing accounts range from 5.26% - 5.40%" bit late now.

[spectoacc] 21/12/2023 09:09

It does.

It may turn out well - "At least 69p" back shortly, and perhaps another penny or so next year.

Or - a year from now, this BB still active with people asking where their final payment is :)

Life's too short sometimes.

[chucko1] 21/12/2023 09:06

Yup - I stand in to start with (recall my 14-16% IRR etc.) but flogged the lot not long after (took about 2 dividends) as the rest of REITs got hit hard and reinvestment was then far more compelling.

I could have merely sold some MM funds, but there is only a certain amount and duration of stupidity one can tolerate from EPIC management. My actions were more related to a religious calling than a technical calculation by that later stage. It plays a part in investing some of the time!

[spectoacc] 21/12/2023 08:56

Kept thinking I'd take 69.2p, then every time it was bid there they'd only offer below bid in any size.

Taken the opportunity today to sell at 68.809p, with the c.0.41p dividend still to come as it's XD today.

Been in a lot of these wind-ups, amazing how long they can go on for - 6-9 months is optimistic IMO. I've several have gone on years.

Good luck those staying in, was a marginal call.

[gonsan] 15/12/2023 12:00

Sold, cant be bother looking at this in my portfolio and getting pss off every time i see the ticker.
Another LSE rip off con

[chucko1] 15/12/2023 11:30

Oh, and Marcus Phayre-Mudge! What could possibly be said other than avoid TRY at all costs. Complete tool.

a propos of little, sold out of AV. as well.