Fayrewood Share Discussion Threads

[dangersimpson2] 28/2/2008 16:27

Let's hope so, I'm not sure how much longer this can drag on. NAV must have done a fair bit of due dilligence before buying such a significant stake in the company, how much longer can it take for them to finish it and agree a price?

If they can't agree a price with management then they could go hostile and put it to shareholder vote. Or cut their losses and we can begin the share buy-backs.

[deswalker] 28/2/2008 16:17

A couple of bigger buys appearing this afternoon on a down day for the market. Are we nearing a resolution ?

[daunker] 11/2/2008 12:11

I guess we still play the waiting game- could anyone explain what all the EPT disclosures are. Is it all the house brokers trades listed?

Can NAV not pick up shares when they are in takeover discussions?

[old boy returns] 31/1/2008 17:39

I would imagine that the balance sheet will be the primary driver of the valuation of FWY now. All that is left on the trading side is Interface Solutions and whatever value is put on that will be fairly small fry compared to the cash and liquid assets on the balance sheet - whose value increases if anything in the current business climate and credit squeeze.

Further if NAV come in with a woeful offer (say 125p) then the management can always call their bluff by saying 'if that is what you think the shares are worth we will happily buy back your holding at that level'.

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The talks seem to be going on forever and i would imagine the discussions are going on over the acceptable price in the current business climate. NAV wanting to reduce the amount they offer and the management obviously wanting as high as possible (particularly if they see no deteriation in trading condictions on the ground.)

[dangersimpson2] 31/1/2008 16:30

There can be no buy-backs in close periods unless irrevocable instructions have already been given. I reckon takeover discussions count as a close period, so unfortunately no buybacks.

I think NAV were reasonably clever in upping their stake and entering takeover discussions as soon as the buybacks began, knowing that these would enhance shareholder value, increase the share price and limit any upside for them.

The talks seem to be going on forever and i would imagine the discussions are going on over the acceptable price in the current business climate. NAV wanting to reduce the amount they offer and the management obviously wanting as high as possible (particularly if they see no deteriation in trading condictions on the ground.)

With the size of their stake NAV can't be too aggressive since if their bid fails they will not be able to exit in size at anything like these prices. If that were the case they would be better off calling off the talks, letting the buy-backs commence and pushing for a capital re-organisation and another tender offer to get their cash out.

[smicker] 28/1/2008 18:57

betman,
Share price in reality has barely moved. Its very frustrating waiting about and the company not buying back the shares at this undervalued price. Is the company obliged not to buy back when discussions are underway? I cant imagine that NAV would be too annoyed if they mopped some up at below 120

[betman] 28/1/2008 17:50

Its gone very quiet
Anyone heard or seen anything. Share price has been falling, is this because the market turmoil is reducing the chance of an agreed bid or is the value of the cash deposits dropping ???

[old boy returns] 16/1/2008 16:12

PT - I think FWY is holding up so well because it is solidly cash backed and cash is king in this sort of market. I have not tried to work out the balance sheet recently but with just IS left on the trading side there must be cash and cash equivalents which more than underpin the shareprice. Also the bonus of disposal proceeds in euros or bank balances held in euros converting well to sterling at current exchange rates where the pound is at record lows against the euro and decent rates of interest to be had on large sterling deposits.

[puffin tickler] 13/1/2008 08:31

It has been a long wait for the deal to go through but the share price has held up remarkably well in a market that has ruthlessly attacked many smaller companies. I rather suspect any potential buyer would try to cut their offer price in the current climate so have bailed out of FWY, my longest and largest holding. Shame, I was hoping for a final boost but the risk is just too great to hold.

[smicker] 12/1/2008 21:27

Just reread the BM announcement and noticed this

"Of the total consideration for Banque Magnetique, €12.0 million was received on completion with the balance of €0.5 million being payable on 30 June 2008
subject to Banque Magnetique's profit before interest, tax, employee
participation entitlements and Group charges for the year ended 31 December 2007 being not less than €5.547 million."

Wonder how likely it is that they would wait for BM figures up to year end to see if they would get the 1/2 million?

[manouk2] 22/12/2007 19:28

The interesting feature about ComputerLinks is that with the exception of a
short period following FWY's sale in March,the market price has never exceeded the price FWY got on the sale of its stake.The company got what now seems a super price for UMD and has sold Banque Magnetique for cash last week.They seem to have got their timing right as well as the price for the assets sold. Has anyone calculated the real underlying value following all this and the earlier Tender Offer which shrank the share capital?

[swiftnick] 22/12/2007 16:38

Hear hear Paul. Good call by you and the directors have done well.

For those who feared that Fayrewood was letting ComputerLinks go too cheaply at €13.55 it is interesting to see that the share price has now dropped to €13.36.

[puffin tickler] 22/12/2007 05:00

Hi Paul,

As you know they have all long gone from these shores and probably will not benefit from your wit, it is ADVFN after all! I have seen some on PDX others on TAN.

I was with you at 70p, but already having a shedload I has a bit late adding and could not really top up as much as the figures suggested I should. Still have seven of my nine purchases, though reduced slightly at the most recent peak.

Happy Christmas to all

[deswalker] 20/12/2007 16:59

RNS. BM sale completed.

[puffin tickler] 20/12/2007 03:53

smicker

I expect that the information had leaked out so that part of the market was aware that it was NA. The RNS was to make sure that this information was available to everyone.

[smicker] 19/12/2007 20:15

Cyberpost appreciate that but since there was no speculation that i've seen i was trying to understand why they felt the need to confirm NA. Surely there must be a reason?

[puffin tickler] 18/12/2007 04:19

I just dont understand why there is any delay here.

In the current market agreeing a price might be difficult. NA may try and use the fall off in SPs to pressure for a lower price. FWY will not accept that argument easily, they will argue that the current market is pretty well irrelevant, they are selling a profitable business and want a fair (but not excessive) price for it.

[cyberpost] 17/12/2007 21:44

it took take a while for the bid to be finalised... for BIO it took 6 months.. i think to sort out their own funding (the credit market turmoil didnt help) BUT they do have the funds ready now for the BIO bid so may be they have the same funds ready for FWY as well so it wont take as long.

[cyberpost] 17/12/2007 21:41

smicker.. i was implying it could be NAV by deduction. NAV had 26% in BIO and they bid for it. NAV had 24% in FWY.... I left it to the reader to deduce that it could be NAV bidding for FWY... (because they had a similar holding in BIO and they bid for it..)

[deswalker] 17/12/2007 21:22

North Atlantic was always odds-on favourite (see 2433 & 2434).

[smicker] 17/12/2007 21:08

cyberpost 2450 is the only place where i've seen the bidder speculated on. 2437 is an rns. Thats not speculation its fact. Given that its so long ago though, why would they bother releasing this now. There must be a reason for this, at the very least a holding statement but why mention who it is?

I just dont understand why there is any delay here. North Atlantic must have much of the work done already to have bought up 24% of the company. Kleeman has his next job lined up. The company cannot be that complex anyway given they have sold so much of it off already. I'd have thought it was a basic half day around the table agreeing a price. Maybe they're assessing the Christmas period as so much of the profit is generated at this time??

[cyberpost] 17/12/2007 18:48

smicker

read post number 2437.

[smicker] 17/12/2007 18:34

It was a surprise to me. I thought it was a different fund manager named in the speculation.

[mctmct] 17/12/2007 17:01

Fayrewood PLC
17 December 2007


Fayrewood plc

("Fayrewood" or the "Company")


Statement re: Possible Offer

Further to the announcement made on 30 November 2007 stating that the Company
was approached by a third party in respect of a potential offer for the
Company, and following recent press speculation, the Board of Fayrewood confirms
that it is in discussions with North Atlantic Value LLP, which may or may not
lead to an offer being made for the entire issued share capital of the Company.

This announcement does not constitute an announcement of a firm intention to
make an offer under Rule 2.5 of The Takeover Code and accordingly there can be
no certainty an offer will be made.

A further announcement will be made in due course.


So, no surprises there.