Hangar 8 Share Discussion Threads

[turnerpa51] 14/2/2014 08:51

On the internet, Insider Media news, says ACS made 2.5 mill on sales of 252 mill, so not the most profitable company in the world. Let's hope they can make some cost savings and use each other's resources to increase growth.

[turnerpa51] 14/2/2014 08:32

Cheers Adam, well explained and I agree, I'm sure there will be more shares issued in HGR8, I await developments, and hope we will get some news soon.

[igoe104] 14/2/2014 08:31

I wouldn't mind it dragging out to the new tax year.
with another bidder coming to the table.

[herewegouk] 14/2/2014 08:12

Thank you Adam. Hopefully it doesn't drag on to long.

[adamb1978] 14/2/2014 08:07

Didn't realise ACS were so much bigger, so yes, in effect it is an acquisition of Hangar 8 by ACS.

A reverse takeover is simply when a listed company buys something which is larger than it (there's various tests but just stick to the concept that the target is larger). Quite often though you will find a private company (ACS in this case) approaching a listed company (HGR8) with a proposal to buy them HOWEVER, in order that the enlarged entity remains listed, it will be structured as an acquisition of ACS by HGR8.

I would imagine that what has happened in this case is that ACS were considering an IPO and also looking at various acquisition targets and therefore they've combined the two.

Given ACS are 10x larger than HGR8, this is clearly not a merger but an acquisition by ACS. I'd expect all ACS management to get the top jobs, use ACS headquarters, retain ACS' name.....and, as its an acquisition, HGR8 should in theory deserve a premium. Only problem is that as the deal is being structured as a reverse, HGR8 will be issuing paper to ACS' shareholders (rather than ACS buying HGR8 shares for cash) so we should be given our premium either via the exchange ratio or via a special dividend

[herewegouk] 14/2/2014 02:10

I am confused after reading about reverse mergers on the internet today. How is it a good deal for hanger8 shareholders ?I hope it is coz I topped up last week when they dipped to £2.40.Can somebody explain the likely outcome for us. So weary of the aim and it rules.

[igoe104] 14/2/2014 00:09

Win win situation for us holders.

Still got nice lump of cash in the bank to share out between holders.

[rivaldo] 13/2/2014 23:12

Gorilla36, yes, a PLC does not "have" to be a quoted company.

ACS are absolutely huge compared to HGR8. They had a £273m turnover for the year to 31/1/12 :o))



Here's their web site:

[gorilla36] 13/2/2014 20:39

Hmmmmmm a bit confused, Air Charter Service PLC is a privately owned company? Can a PLC be privately owned?

[collectivefriction] 13/2/2014 20:13

What are these figures based on?

Not that I disbelieve them, but I am in on some other stocks where the rampers seem to see no downside - despite a drop of about 20% :) Just trying to get more of a feel for this game...

[scotch broth] 13/2/2014 19:06

gary
Yes.
What we need now is another bidder.

[gary38] 13/2/2014 18:53

Scotch Broth is that between 40 and 100 % increase of the currant share price.

[scotch broth] 13/2/2014 17:30

A reverse takeover is where an unquoted company takes over a quoted one.It reverses into the quoted one and acquires its AIM listing.
If this is a takeover then I would expect a premium of between 40 and 100%.
If it is just a merger of equals then perhaps 20% to take account of expected synergies.
ACS is much bigger so I expect it is a takeover.

[goliard] 13/2/2014 16:47

I am just pleased that it isn't a straightforward placing! I do trust the management here and the CEO owns 42% of the issued shares, with other directors owning another 16%, so as long as they do the right thing for all shareholders then this could be really great news.

[adamb1978] 13/2/2014 16:12

In theory, the valuation uplift should be considerable. Havent had the chance to run through a merger model yet however HGR8's gross profit was about 8m last yera and EBITDA of 2m so about £6m overheads

In a combination of companies in this sort of industry you should be able to cut a good chunk of the combined overheads. Lets say you could cut 25% of each, then simplistically thats £1.5m savings from HGR8's cost base. Bearing in mind their net income last year was about £1m pre-exceptional, the uplift to value is huge

[rivaldo] 13/2/2014 15:12

Hello - excitement coming.....looks good to me as it will increase liquidity, size and the attraction of the group to institutional investors:



Extract:

"Hangar 8, one of Europe's largest operators of privately owned passenger jet aircraft, is pleased to announce that it is in advanced discussions with Air Charter Service Group plc ("ACS"), a privately owned air charter business, about a potential combination of the two businesses to form a significantly enlarged group on the AIM market.

The proposed transaction would constitute a reverse takeover for the purposes of the AIM Rules and, accordingly, trading in the Company's shares has been suspended pending the earlier of the cessation of discussions or the publication of a re-admission document (which will provide further detailed information on the proposed transaction), which will be posted to shareholders in due course.

Nigel Payne, Non-Executive Chairman, commenting on the proposed transaction: "We are very excited about the prospect of putting Hangar 8 and ACS together to strengthen our combined offering to the aviation industry. I believe that the combination of the two businesses provides for a compelling proposition for all of the stakeholders of both businesses." "

[yorgi] 13/2/2014 15:07

My guess is you have some good news coming.

[collectivefriction] 13/2/2014 15:04

Hmm - new to this - so what is the implication of the aim suspension?

[rivaldo] 13/2/2014 08:43

Giles Hargreaves' new Marlborough Nano Cap Growth Fund has just released the first list of its top holdings - it's encouraging to see HGR8 is its fourth largest holding:

[igoe104] 12/2/2014 10:26

Sorry off topic.

Rivaldo and gents.

You should take a look at some of these zinc stocks, with big zinc mines closing down over the next year and onwards the supply wont meet demand so the price of zinc looks like its going to rocket over the medium term.

Ive just got in with gfm they have a zinc mine in china and they are increasing production at just the right time, worth putting in your watch-list.

The zinc price in moving up and the LME Zinc stocks are running out quickly.

[rivaldo] 12/2/2014 08:28

Cheers igoe - nice plug for HGR8:

"The software model has been developed in close consultation with operators and has attracted the support of BBGA and leading members who have contracted in, including Hangar8 (the largest aircraft operator in the UK and one of the top five in Europe)"

[igoe104] 11/2/2014 17:35

A mention here.

[rivaldo] 11/2/2014 09:38

Indeed henry - never much stock around it seems, so when it moves it moves fast.

[henryatkin] 11/2/2014 08:50

Definitely one to buy the dips. New highs in sight.

[rivaldo] 10/2/2014 08:31

No probs Gary. I can't even see it on the LSE discussion board though! Perhaps you could paste a link to it?

Only a month now until the interims in early March (last year on 6th March, and 1st March the year before that).