Galliford Try Share Discussion Threads

[morgoth1] 20/11/2019 12:51

Dont know how much good it will
do but ive just voted against the deal.

[morgoth1] 19/11/2019 08:03

MY online broker Hargreaves Lansdown told me
i can vote for or against the deal tomorrow
by clicking onto the icon that will be next to
GFRD in my stockwatch.

[dr_smith] 14/11/2019 10:14

Just rec'd email from brokers (headed "Galliford Try plc - Urgent Response Required by 22/11/19 - Court Meeting")linking to this:

Timetable page 9.
Says published 8/11/19 but think I may have missed this one amongst other rns's.
Has court meeting 27/11/19 and court hearing 17/12/19

I don't see any meeting where investors can have dialogue with BOD prior to voting.
I find that extremely odd.
There has also been no media comment from instis that I am aware of.
Very odd.

The vote is yes or no, can't ask "what would plan be without BVS?".
Very odd.
Us PI's likely have near zero influence on any outcome, but still find it very odd how a company can seemingly be sold off by BOD with s/h having little to no say or dialogue in the matter.

IMO
Dave

[rat attack] 13/11/2019 10:24

It seems strange that no one has picked this up!! The recently paid dividend of 35p for GFRD was for the FY ending 30 June 2019 and the 41p dividend due to BVS is for FY ending 31 December 2019 - So where is the GFRD dividend for the 6 month period 1 July 2019 to 31 December 2019?? Doesn't seem equitable or ethical to me given that the next div for the combined business will not be payable until Nov 2020!! It is a complete guess whether rump will be able to pay a dividend.

This deal seems pretty poor to me for GFRD shareholders and glad I sold out just before they went xd.

[morgoth1] 13/11/2019 09:53

IMHO as ive said before this is a rubbish deal
for Galliford shareholders this financial year
earnings and dividend should be a lot better than
last year.
I really hope this deal gets voted down.

[highlands] 13/11/2019 09:36

If the deal is voted through, GFRD shareholders should end up with a lot more than where the share price is right now. If not then in the long run it will be even better!

[dr_smith] 13/11/2019 09:21

As you say Montycat11, it does sound like a done deal from way BOD communicate it and conduct themselves. As if BOD own the co, not run it for the owners!
I haven't spotted any comment on proposed takeover yet from yesterdays AGM, such as "What are your forward plans if you were to carry on without BVS".
Even though it wasn't a question on agenda, I bet it was the main question all were asking.

I see following the AGM the rns carries the note:
"The Board notes that while Resolution 2 to approve the Directors' Remuneration Report was passed, a significant number of shareholders opposed this resolution. The Board and the Company remain committed to continued engagement with shareholders and proxy advisors to address concerns pertaining to executive director remuneration. The Remuneration Committee will continue to engage with shareholders to ensure their views are fully understood and considered."

[montycat11] 11/11/2019 18:09

Lets face it..you can make all the calculations you want.. truth be told..no one really knows how this deal is gonna pan out only the inside clique.. voting aside..it seems a dun deal to me..as a ltsh all i really want to know is..how will my investment return...what exactly am i voting for as a gfrd sh..i aint bin swayed so far because i dont exactly know if I'll be better off or not...spell it out ffs..

[dr_smith] 11/11/2019 09:38

Just spotted GFRD have AGM tomorrow.
Ihope someone asks qustions I raised in my post 5502 above.
Essentialy:
"I still haven't seen any proposal from GFRD BOD on the forward direction if BVS offer was not to be taken."
How can s/h vote on THEIR preferred action (on BVS not AGM stuff) if their alternate proposals for non-BVS future are not also proffered.
Not to state an alternate would imply they are dead wood in my book, headless chickens who can't function without their old boss. I don't want to believe that, but what else can someone think when they seemingly have no forward plans other than to roll over and play dead for BVS.
So.. post AGM, Tues pm or Wednesday, there may be interesting media comment.
Dave

[warranty] 08/11/2019 18:51

Sold out completely yesterday at a small loss as I can’t see any way this is a good deal for me as a shareholder. I have been in GFRD from much higher share price and continued to add and average down fully believing the value of Linden would recover once Construction was sorted. To say I’m unhappy is an understatement and I can’t believe that any of the funds holding this can see it as positive either so I’m not sure the deal is as sure to go through as management thinks but like ken298, if it falls through I will reinvest.

[ok,yah] 08/11/2019 15:32

Agreed - it sure looks like the CEO's of GFRD and BVS have cooked up this deal for themselves. An Atrocious deal for GFRD shareholders and with the Galliford CEO leaving and construction side probably still haemorrhaging cash its very hard to value the construction side favourably. It looks cheap but that's the reason. The market seems to agree if I was still holding these id vote against the deal.

[ken298] 08/11/2019 15:29

Copied from other blog - clearest explanation to date -

I am afraid your estimate is incorrect.
Let's say you have £100,000 worth of Galliford Try shares today. At the current shate price this equates to 13,812 shares yielding £8000 pa.

With this deal you will be hard done by.
You will get .574 Bovis shares for one GFRD share.
Therefore you get 13,812x .574 = 7928 Bovis shares. Currently the Bovis share price is 1130.
90p will have to be deducted due to special dividend payable to existing Bovis shareholders
making the value of a Bovis share 1040 after this dividend is deducted.
The value of your Bovis shares will therefore be
1040x7928=£82,451. Your dividend yield will now be only be about 5.8% of £82,451=£4782.
Regarding the £300k. This will be used to reduce debt and from what I read there could be a £150/100 million surplus. If this surplus was given back to shareholders expect 135p /90p respectively. If the rump remains in profit I read a 10p dividend could apply.
Your 13,812 GFRD shares would then yield
£1,381pa. The value of your GFRD shares will be
£18,646/£12,430 respectively.
So at best you have a portfolio of 2 companies with a value of £101,097 yielding £6163pa.
If you rely on dividends this is very bad news especially because the GFRD yield could all but go with one nasty exceptional cost.
Your Bovis shareprice could increase, along with the dividend due to the synergy of Linden Homes and Bovis Homes.
I was a long-term shareholder enjoying a very good income but have totally bailed out at a loss.
I cannot understand why there isn't more written about what a poor deal this is for shareholders and what an excellent deal it is for management.
Prothero will leave behind what could be a sinking ship and will then follow the money all the way to Bovis. The way things are reported so far it gives the impression that this is a done deal. I am not so sure. The shareprice should be higher. Shareholders have been left in the dark
re future strategy and projected value in the rump. Simply extraordinary! The forthcoming AGM
will shed more light into this matter. If this deal falls through I will reinvest.

[morgoth1] 07/11/2019 22:18

IMHO very good for Bovis shareholders not good for Galliford shareholders.
There is more value for us shareholders in Galliford staying independent.
The management has over the last few years lost us hundreds of millions
of shareholders value on their stupid construction projects.
Now hopefully we have come to the end of the losses and earnings are about to
improve and they want to sell to Bovis making sure they all get good jobs at
Bovis.
This company has not been run well over the last few years to say the least
Galliford is being sold for the benefit of the Management not the benefit of
their shareholders.

[dr_smith] 07/11/2019 17:40

I've just rec'd an email for the BVS rns:

"Results of Placing
Bovis Homes Group PLC ("Bovis Homes" or the "Company") is pleased to announce the successful completion of the placing announced earlier today (the "Placing")."

I had info overload earlier and didn't realise the placing was being done today.
I would have excpected it to only be done once the s/h's have given the OK (e.g. after 29/11/19 see below).
It seems a bit presumptious to me and smacks of snowball tactics, but with so much small print I may have missed something.

29th November seems the next relevant date when instis decide:

"Bovis Homes also expects that a Scheme Document...to Galliford Try Shareholders on 8th November 2019. .... The Galliford Try Court Meeting and the Galliford Try General Meeting will take place on 29 November 2019. "

[dr_smith] 07/11/2019 13:01

If I may tweak my above post for the conversion factor, we would have:
(bvs share price - 0.90) * 0.57406 + construction with cash injection.
e.g. as I type..
(11.63-0.90) * 0.57406 = £6.16 + construction

I think I looked when offer was first made, we don't have info to determine what fixed assets (plant and buildings) would be going to new BVS and which would stay as part of construction.

I note:
" ...achieve estimated recurring run-rate pre-tax cost synergies of at least £35 million per annum by the end of the second full financial year following Completion."

I find that hard to believe.
They are both big co's so would expect them already to be getting best discounted prices for materials. That only leaves Head office overhead, inclusive of accountants fees and at £35m, it seems disproportionate and massaged over-optimistic figures, likely prompted by BVS to make offer look rosier than reality.

In my cynical opinion.
Dave

[careful] 07/11/2019 13:01

Bovis boss knows what he is buying here.
Must trust his judgment, and when the CEO GFRD jumps ship to join Bovis what more evidence do we want.
I will hold my Bovis long term if and when they arrive.

The rump I will hold also.
tories/labour trying to out spend each other on infrastructure and house building.

Either way we must be in the right place here.

[eeza] 07/11/2019 12:54

SP slowly slip-sliding away. Soon be at parity with 0.57406 BVS per share.

[profitaker] 07/11/2019 12:48

"The rump should surely be worth, at least, the cash held by the Co."

Exactly !

[eeza] 07/11/2019 12:10

Bovis statement of the same.

[dasty1] 07/11/2019 12:04

Hang on a minute...just realised there is a separate statement issued by gfrd which is not showing on ADVFN. Their website has it.

Not sure if you missed it? I did!

[eeza] 07/11/2019 11:36

The rump should surely be worth, at least, the cash held by the Co.

[dr_smith] 07/11/2019 10:57

Thank-you all, so consensus of BVS share price - 0.90, equates to £6.1941 plus constrcution rump.
It does take much brain scratcthing to distil what you would hope is black and white.

[profitaker] 07/11/2019 10:56

11.1
We will get our BVS entitlement rounded down to the nearest whole number. The fractions (of shares) owed to GFRD holders will be added up and those number of shares sold in the market. That amount of cash raised will then be distributed to GFRD holders, unless the amount due to each individual is less than £5, in which case BVS will keep it.

11.2
As above, but applicable to existing BVS holders only.

[profitaker] 07/11/2019 10:33

"Not getting that 90p per share is quite a significant and somewhat hidden negative for gfrd shareholders"

Good spot dasty, thank you. I've revised the GFRD market valuation of the rump to £1.05/share. Against the cash consideration from BVS of £2.70/ share is still a no brainer. Not sure if the dividend paid by GFRD will be subject to the "customary completion adjustment" from the BVS £300m but if it is that'll bring the net cash consideration down by £39m.

[dasty1] 07/11/2019 10:31

Errr...what does para 11.1 and 11.2 of the RNS mean in plain English?!!! Anyone help?