Fayrewood Share Discussion Threads

[deswalker] 30/11/2007 12:44

Another point to bear in mind is the loss of BATR for management (excl Mr Legorburu) if they sell post April (assuming the AIM changes happen). Further incentive to get the deal done quickly IMO.

The fact that North Atlantic just mugged someone for 11% in the teens (hopefully it wasn't Mr Legorburu himself) means that their sums will still look good if they offer a bit more to management and the rest of us in order to get the deal done quickly.

[deswalker] 30/11/2007 12:31

Even prior to the latest RNS, the thing I noticed from this morning's RNS was the increase from zero to 11.54% within Trident Private Equity Fund II LLP and the reduction of the holding outside the Trident stable. My guess is that this fund wants to take FWY private, strip out all the cash, grow Interface and float it again in a few years time at a big profit.

Remember management own about 20% and I'm sure they're sellers rather than long-termers (particularly Mr Legorburu) so Trident could get up to 45% very quickly. If the price is right for management then I can see it going through very smoothly. My guess ... 150p.

IMO, DYOR

[dangersimpson2] 30/11/2007 12:21

Price really depends on what North Atlantic Value are prepared to accept. I think most holders would be willing to accept a slight discount to NTAV for the certainty of return. However the company have plenty of cash to continue to aggressively buy-back shares if the price offered is unacceptable or the company wants to mount a bid defense, so the bidder really cannot be too cheeky.

A 30% premium to yesterday's price would be 147p. I would certainly consider not accepting below that sort of level...but then I doubt my holding will influence proceedings!

[puffintickler] 30/11/2007 12:13

I expect there will be plenty of stock overhang following the buyback who will be happy to take 130p in the market.

That said if recent results are in line and the deal goes through I would expect a price over 140p, maybe well over. It depends greatly on performance and prospects (where the past is of limited use as a guide) and the potential synergies with the buyer.

[scburbs] 30/11/2007 12:13

Probability on success of takeover would seem to be high as unlikely that any bidder has not spoken to North Atlantic Value LLP (unless it is North Atlantic LLP wanting to purchase at a discount to NAV and then realise the NAV). With 24% probably in the bag and most of the PI shareholders happy to get out at a reasonable price it would seem the end is near.

[scburbs] 30/11/2007 12:00

Nice. Any guesses on offer price? I will guess 140p which should give the purchaser a nice c.10% discount to TNAV. Any offer below 135p would certainly be rather opportunistic.

[cyberpost] 30/11/2007 11:42

Fayrewood Stat re: Share price movement



RNS Number:8799I
Fayrewood PLC
30 November 2007


Fayrewood plc

(the "Company")


Statement re: Share price movement

The Company notes the recent movement in its share price and confirms that it is
in talks with a third party which may or may not lead to an offer being made
for all or part of the Company.

A further announcement will be made in due course as appropriate.

[scburbs] 30/11/2007 09:18

Looks like good news for further buybacks or tender offers. North Atlantic are unlikely to be keen on FWY making large investments in Interface meaning there will be lots of cash to return to shareholders.

[dangersimpson2] 30/11/2007 09:14

Ooops, got the name wrong, but the scenario right. I think this is as good as a buyback. If the company bought the shares the NTAV would have increased. However with NAV LLP owning 24% I think we are much more likely to see the share price close the gap to NTAV in a reasonable time frame.

[puffintickler] 30/11/2007 07:32

But who has sold shares to them? Another announcement must be due.

[deswalker] 30/11/2007 07:23

North Atlantic now over 24%. Second best after a buyback I guess.

[dangersimpson2] 29/11/2007 23:28

Agreed Des, unless of course its Active Value upping their stake, then we'd see some serious pressure to out the value in the balance sheet. But you are right, you'd think the company would have first dibs on any line of stock going, since they are known to be actively buying back shares and have bought at a price above these deals in the last few days.

[smicker] 29/11/2007 17:07

Des,
If it is the company thats a nice piece of work at 1.13/1.14 but surely it should have been reported by now whoever it was? What do you make of the 1.13 trades and then the other at 114.77? I may be wrong but i think if the trade is still being worked you can delay reporting it so maybe there is more to come?

[deswalker] 29/11/2007 16:38

It will be rather annoying if someone has sold a big line of stock and the company wasn't the buyer.

[scburbs] 29/11/2007 12:05

With a bit of luck FWY have negotiated with a major shareholder(s) to buy them out at a slight premium to the current price. Don't suppose we are going to get that lucky though.

[dangersimpson2] 28/11/2007 14:41

Yeah, I'd seen those, looks like we'll be getting some holding announcements tomorrow then!

[gubinz] 28/11/2007 14:28

Hugh number of shares traded today. Over 4.3 million. With 23,177,116 in issue thats over 18%

[10km] 23/11/2007 18:17

RNS Number:4391I
Fayrewood PLC
23 November 2007


Fayrewood Plc
(the 'Company' or 'Fayrewood')


Director's Shareholding


Fayrewood was informed on 23 November 2007 that the George Stephany Will Trust, of which David Kleeman is a trustee, has
today purchased 2,214 ordinary shares of 5 pence each in Fayrewood.

Following this purchase, Mr. Kleeman has a legal or beneficial interest in 832,681 shares representing approximately
3.59 per cent. of the issued share capital of the Company.

For further information please contact:

David Kleeman, Non-Executive Chairman 07973 988 018
Paul Griffiths, Chief Executive 0870 351 5802
Fayrewood plc

Oliver Scott
KBC Peel Hunt 020 7418 8900

Tim Anderson / Lisa Baderoon
Buchanan Communications 020 7466 5000


This information is provided by RNS
The company news service from the London Stock Exchange
END

[gengulphus] 21/11/2007 03:14

As far as I know, provided they stick to the terms of the buyback resolution, they're allowed to buy back in any volume, whether small or large. But if the volume available on the market is small, they may not be able to buy back shares in enough volume to make it worthwhile. And the maximum price specified by the resolution (5% above the average mid price for the preceding 10 days) limits the extent to which they can drive the price up in an attempt to tempt out more sellers.

Gengulphus

[smicker] 20/11/2007 16:00

Are they allowed to buy back shares if there is no volume. I thought there were retrictions on this. Only 11k so far today

[deswalker] 19/11/2007 15:33

another 100k buyback at 118p

[prewar] 16/11/2007 11:28

Buybacks shouldn't be an issue now with the falling share price and the early low prices moving out of the average calculation. Will see next week if they have any appetite for further buybacks.

[gengulphus] 14/11/2007 14:39

In case anyone is looking for signs of further buybacks at the moment, they won't be happening. The reason is that the buyback resolution places an upper limit on the price the company can pay, of 5% above the average mid price over the 10 business days preceding the purchase. At present, I make that average 114.7p, so the company cannot pay more than 120.435p per share today, and since the market price is above that, they won't be buying back today at the current price.

Each day that passes with the share price at around this level will of course pull the average up, so they'll probably be able to buy back again within a few days.

Gengulphus

[molatovkid] 13/11/2007 10:42

Just picked up a few....quite like the story here.