Galliford Try Share Discussion Threads

[rahosi] 18/12/2019 14:51

For tax purposes, can someone please advise what the original acquisition split percentage will be on completion? Have looked but can't find. Thanks

[profitaker] 17/12/2019 08:14

"the question for me is what is the intrinsic value of the rump?"

I would suggest the intrinsic is the tangible NAV, which I make to be £1.35/share

[marksp2011] 17/12/2019 04:41

If GFRD = 855
BVS = 1397

BVS will get a 41p divi and a UKP 60M bonus issue c 3% dilution

1397 - 41p = 1356
1356/1.03 = 1316
1316 *.57406 = 755

So GFRD is roughly 100p. I only have 2500 GFRD - at 100p I either buy more or dump it - the question for me is what is the intrinsic value of the rump? Whay evidence do we have that GFRD won't have another accident and this time need cash without the continual injection that has been coming from the HB side?

[dasty1] 16/12/2019 19:57

Yes, I make newco just over £1 as well. It’s stuck in the 90-110p range for quite some time now, so that appears the likely jan launch price. I’m tempted to stick until jan, sell some bvs buy newco at around £1, so I have equal funds in bvs and newco. If I do nothing, my bvs holding will be quite large, but newco holding hardly worth anything. If I could buy newco now for £1 I would! Shame that’s not an option...

[profitaker] 16/12/2019 15:53

NewCo is currently valued at £1.05/share by my maths, or a market cap of £117m, against a pro-forma balance sheet tangible NAV of £150m. The NewCo share price whould be at least £2 IMO. I can't see any advantage of flipping into BVS ahead of the corporate action.

[marksp2011] 16/12/2019 15:41

Dave

I am tempted to sell out GFRD, Buy BVS. Pocket the 41p divi and the shares bonus issue. Sell some and buy the GFRD rump

[philo28] 16/12/2019 14:07

Hi, can anyone explain to me, do we get bvs shares if you have galliford shares on a certain date? Thanks. Do we know what price we will get them at?

[our haven] 16/12/2019 14:00

If the new company can get part of the new northern infrastructure projects at a profitable price then we could have some value in the company.Having said that get the pricing wrong and it will be game over.

[garycook] 14/12/2019 01:46

Dave,MF article.Still we are doing Ok with BVS,and I believe the New GFRD will be good.

[dr_smith] 13/12/2019 10:44

Gary, I find your post a confusing read. Written in style of an article rather than thread post it is not clear what bits are yours and copied from elsewhere and "At the time of writing" not clear when that was with so much historic comment.
Intended as constructive comment, sometimes hard I know to read stuff back to yourself with cold/third party eyes.
Dave

[garycook] 13/12/2019 01:34

Re-building the business. 2019 has been a tough year for Galliford. It started by issuing a profit warning in April due to exceptional costs on the Queensferry Crossing in Scotland, and the firm has struggled to rebuild investor confidence ever since.

Management is undertaking a strategic review of this construction division, with the view to a sale in the medium term. Galliford has also recently agreed on the sale of its homebuilding business.

After peer Bovis approached the company about a deal at the beginning of 2019 (rejected), it returned in the third quarter with a higher offer. Bovis is paying £1.1bn in cash and shares to acquire Galliford’s Linden Homes and Partnerships divisions. This deal raises the prospect of a special dividend for Galliford’s investors, and also strengthens the group balance sheet.

Additional security
The City has been worried about the company’s balance sheet for some time, and the stock, which currently supports a dividend yield of around 9%, should receive a boost from this additional security.

And if management can agree on a long-term plan for the rest of the group’s businesses, including the construction and regeneration arms, I reckon the stock could produce a total return of more than 100% in 2020.

At the time of writing, shares in Galliford are dealing at a forward P/E of just 5.4, around half of the sector average. In my opinion, this reflects the level of uncertainty surrounding the business.

If management can lay out a long-term plan, I reckon investor confidence will return, and the stock could rise to a sector average multiple, implying an upside of nearly 90% from current levels. On top of this, there’s that juicy 9% dividend yield to look forward to.

[dr_smith] 12/12/2019 12:01

Mark & other GFRD GFRD followers
.. as opposed to BVS GFRD:

I see headline "Balfour Beatty says order book 'significantly higher'"
I don't know if they fair any better in terms of profit margin.
So outlook seems good for t/o, but profits?
Normally risk/prices etc find a natural balance in any business.
In construction (atleast UK) there is minimal margin and running over budget is so easy for unforseeables, it doesn't make sense to me why normal supply/demand costings seems out of balance.
Brexit/election are clouds on public purse spending, but I believe the low margins existed before those headaches.

[montycat11] 09/12/2019 10:21

Interesting.. Time will tell I guess.. I was trying to understand the way in which this merger impacts on the overall value of the company..(Bvs that is) Based on current share prices let's say gf worth 5.50 to bvs does that not mean Bvs shares increase by that much or am I stupid. No don't answer that

[garycook] 09/12/2019 09:06

Broker Forecast - Peel Hunt issues a broker note on Bovis Homes Group PLC
Mon 09 Dec 2019 08:40
Peel Hunt today upgrades its investment rating on Bovis Homes Group PLC (LON:BVS) to buy (from hold) and raised its price target to 1420p (from 1025p).

[montycat11] 09/12/2019 08:50

Does anyone have an idea whatBvs share price might be.. post merger.. Any thoughts

[marksp2011] 08/12/2019 20:37

I am planning on 24 December

[pascha2020] 08/12/2019 16:29

Thanks Mark that is helpful, so based one the above ( and i realise it is a guide)if you were in it for the bovis shares you should have these on the 3 January at which point you could sell the Galliford shares.

What is the latest date according to the above that i need to buy Galliford shares - is it the 2 January? that seems late?

Kind regards
Pascha

[marksp2011] 08/12/2019 15:25

The dates and times given in the table below in connection with the Acquisition are indicative only and are
based on the Company’s current expectations and are subject to change. If any dates and/or times in this
expected timetable change, the revised dates and/or times will be notified to Shareholders by announcement
through a Regulatory Information Service. All times shown are London times unless otherwise stated.
Event Time and/or Date(1)
Announcement of the Acquisition and the Placing ............................... 7.00 a.m. on 7 November 2019
Publication of the Prospectus and posting of the Circular .............. 7 November 2019
Admission and commencement of dealings in the Placing Shares
on the premium segment of the Official List and the Main Market of
the London Stock Exchange .................................................................. by 8.00 a.m. on 11 November 2019
Latest time and date for lodging Forms of Proxy (or appointing a
proxy electronically or submitting a proxy via CREST) for the
General Meeting................................................................................... 11.00 a.m. on 28 November 2019
Voting Record Time(1) ............................................................................ 8.00 p.m. on 28 November 2019
Galliford Try Court Meeting.................................................................. 10.00 a.m. on 29 November 2019
Galliford Try General Meeting .............................................................. 10.15 a.m. on 29 November 2019
General Meeting................................................................................... 11.00 a.m. on 2 December 2019
Ex dividend date for the Second Interim Dividend ............................... 8.00 a.m. on 24 December 2019
Second Interim Dividend Record Time ................................................. 6.00 p.m. on 27 December 2019
Scheme Effective Date ......................................................................... 2 January 2020
Consideration Share Record Time ......................................................... 6.00 p.m. on 2 January 2020
Bonus Issue Record Time ...................................................................... 6.00 p.m. on 2 January 2020
Ex dividend date for the Bonus Issue Shares ........................................ 8.00 a.m. on 3 January 2020
Expected Completion Date .................................................................... 3 January 2020
Admission and commencement of dealings in the Consideration
Shares and Bonus Issue Shares on the premium segment of the
Official List and the Main Market of the London Stock
Exchange ............................................................................................... by 8.00 a.m. on 3 January 2020
CREST accounts of Galliford Try Shareholders holding on or soon after
in uncertificated form credited with Consideration Shares................... 8.00 a.m. on 3 January 2020
CREST accounts of Shareholders holding in uncertificated on or soon after
form credited with Bonus Issue Shares ................................................. 8.00 a.m. on 3 January 2020
Despatch of share certificates: (a) for Consideration Shares to
Galliford Try Shareholders holding in certificated form; and .............. on or soon after
(b) for Bonus Issue Shares..................................................................... 8.00 a.m. on 3 January 2020
CREST accounts credited with any cash due in relation to
the sale of fractional entitlements.......................................................... within 14 days after Completion
Despatch of cheques for any cash in relation to the sale of
fractional entitlements for those Galliford Try Shareholders who do
not hold their Galliford Try Shares in CREST ...................................... within 14 days after Completion
Second Interim Dividend paid to Shareholders..................................... May 2020

[pascha2020] 08/12/2019 15:09

Can someone advise if the merger has received shareholder approval and if so what is the ex divi date. When does the new company start trading, is there a date. I presume that GF will not suspend in the interim.

[jack_c_hk] 05/12/2019 17:40

It just happened to be when my div was reinvested! Maybe all brokers reinvest at the same time and the share price goes up?

[mattcookson] 05/12/2019 15:25

Anybody knows what caused the spike this AM To 768 and why it’s back down to 740 now?

[dasty1] 04/12/2019 12:36

Just updating my numbers, and it appears NewCo is presently valued at 80p ps or £80m, give or take 10%. Coincidentally, that’s probably what AWB claim will settle at. It would be nice if that claim was handed back to newco shareholders as an 80p special dividend meaning the newco was a free ride. Which is what it might end up in terms of share price ie free/worthless.

[morgoth1] 04/12/2019 10:16

Anyone like to have a stab at H1 Dividend

[highlands] 03/12/2019 09:41

https://www.constructionnews.co.uk/contractors/galliford-try/galliford-try-road-settlement-offer-less-budgeted-100m-02-12-2019/