Hirco Share Discussion Threads

[skanjete2] 10/6/2011 09:40

Thank you H.E.

It's also in the interest for the family not to wait too long before arranging a merger, because of the preferreds accrueing at 12%. Their problem rises at 12% a year, which at this point is faster than the rise in value of the equity. So Hirco PLC has the time on its side.

[horndean eagle] 10/6/2011 09:15

Had a chat with Liberty PR guy. Effectively its a case of the Hiranandani's wake up in the morning and aren't motivated to do anything because there isn't much of an incentive for them. Give them majority control of the company and they will hurry up the developments, release cash from bankers and everyone wins. They are not being coy about it. What HRCO do have on their side is that once there is excess cash within the operating companies then that money has to be channelled to HRCO. It is in Hiranandani's interests not to take on any form of debt going forward so that they can say that there is no excess cash to channel upwards. That is why we have a delay until 2021 now. I think arbitration proceedings in Singapore are likely before then.

[bones30] 10/6/2011 09:13

Oh sorry that link didn't work... Give me 2 secs.

There, fixed. Shame that letter isn't showing up under the RNS announcements.

"we are shocked to know the lengths that the Board of Hirco will go to pursue a, so-called, strategy that has not the slightest chance of achieving any benefit for the shareholders of Hirco."

[skanjete2] 10/6/2011 09:12

Liberty is the Family

[bones30] 10/6/2011 08:48

Missed this yesterday:



Then we get the response today:



Is Liberty anything to do with Laxey?

[hugepants] 10/6/2011 08:47

succinctly put.

There was a mention of a deal proposed by the Family in the last results:



...The principal term of this proposal was that the Family should obtain control of Hirco, through 50% of the voting rights of Hirco, without the contribution of cash or any additional assets to the merged group which would, in the view of the Board, be necessary to balance the current significant disparity between the accrued economic interest of the Company and that of the Family. The Board, consistent with the views of key shareholders (with whom it was asked to consult), concluded that this offer was not a basis for meaningful discussion...

[skanjete2] 10/6/2011 08:32

The family doesn't seem to been very amused with the way things are going. Although they are quite harsh in their shareholder-letter, they don't suggest how to progress Hirco.

Their reasoning seems to be : The Family, as developer, controls the cashflow. There won't be any cash flow before 2021 (contrary to earlier statements). So therefore the accruing dividends on the preferred are basically worthless. So that is why Hirco plc has to merge with the Family interest on the Family's terms.

On the other hand, if there is no cash flow in the foreseeable future, the equity in the projects is basically worthless. That's also why the 40% of the equity has been impaired from Hirco's balance sheet. But if the 40% is worthless, I suppose the 60% of the Family is also worthless. So by stating there is no cash flow, they admit that the Family's stake in the project is basically worthless.

So in fact, the Family is trying to merge their control over zero cash flow and worthless equity with Hirco's preferreds. I can understand why that is difficult to agree upon...

[lbo] 06/6/2011 10:36

Jossels Loverat has a bit of a crush on me. Was not long Hirco since I started this thread quite the contrary! LOL

But would not be short now and have not been for a few weeks but DYOR as always on any shares

No idea what LEAD is or even does! But perhaps Loverat can explain that and his infatuation with me. (suspect he has been on the wrong side of a few of my positions since 2007 and he is a bit sore) ie insolvent banks and overvalued property shares LOL

[josels] 04/6/2011 07:57

loverat, HugePants

who is LBO? and what references can you provide for that statement?

"LBO has a rather poor track record of buying into Chinese and
Indian stocks and losing his shirt. He was destroyed in LEAD and
others."

I am not scared, just curious

[hugepants] 04/6/2011 00:17

Yeah thanks for that. I'm really worried now and I'll be selling on Monday.


EDIT: Just joking!

[loverat] 03/6/2011 21:29

Careful folks

LBO has a rather poor track record of buying into Chinese and Indian stocks and losing his shirt. He was destroyed in LEAD and others.

I am still keeping my eye on this but LBO's presence here does not encourage me.

[nilip] 03/6/2011 20:52

Scburbs,

Thanks for the informative posts.

I don't think there's any denying that HRCO is 'massively undervalued' even with respect to it's Panvel plans alone, as you say – it's quite bizarre to think how absurdly low the share price has fallen (dodgy shenanigans or not ...)

I'm starting to form the opinion that a very possible, if not likely outcome, given the enormity of the undervaluation w.r.t NAV, may in fact be an approach from a potential purchaser for Hirco and the family's interests. Maybe not what we had in mind when we all invested here in the first place but perhaps the speediest way of achieving a handsome return on this investment.

That said, with limited down side remaining, it's very tempting to stock up at these levels, and just hold for as long as it takes for value to out, which, I have no doubt it will.

[scburbs] 03/6/2011 18:40

A more useful summary of the timing for the airport with work to start in 2012 and Phase I to open in 2014.

"Draft master plan for Navi Mumbai Int'l airport cleared news

17 May 2011

Delhi: Plans to construct a second international airport at Mumbai received a major boost on Monday with a steering committee comprising of civil aviation and state government officials clearing the draft master plan. This clearance removes the last hurdle for the project which now moves on a fast track.

...

The clearance will allow bidding for airport construction to start, a process which is expected to take a minimum of 7-8 months. Global tenders will now be issued for the attention of developers.

The Mumbai airport is expected to reach the saturation mark of 40 million passengers by 2016, which makes the setting up of a new airport critical.

Under the draft master plan, the first phase of the Navi Mumbai airport is slated to come up by 2014 with a capacity to handle 10 million passengers."

[scburbs] 03/6/2011 18:34

Seemingly full steam ahead with the railway development as well.

"After undertaking work on the first Metro railway project in Navi Mumbai, the state is now planning to lay the foundation stone for two more lines of the project in a year. One of the arms of the project, which will go from Vashi-Nerul-Seawoods-Panvel, will run parallel to the existing railway line and eventually link the Mumbai and Navi Mumbai Metro railway networks.

The foundation stone for the first arm of the project in Navi Mumbai, which will run on the Belapur-Taloja-Khandeshwar-Navi Mumbai airport route, was laid on Sunday. The Delhi Metro Railway Corporation had identified six Metro corridors for Navi Mumbai which total 190.70 kilometres. The project is being executed by the Cidco and though it is envisaged to complete work on the route by March 2014, Chief Minister Prithviraj Chavan sought that the target be pushed to 2013.

Principal secretary (Urban Development Department) T C Benjamin said of the six corridors, they wanted to take up work on another two - Vashi-Nerul-Seawoods-Panvel, which is a 25-km-long route costing Rs 6,000 crore and the Ranjanpada-Kharkopar-Seawoods route, which is 14 km long and will cost Rs 3,000 crore. Benjamin said the work on these two arms will be undertaken on a war footing by the Cidco in six months and the bhoomi poojan will be performed in a year."

[scburbs] 03/6/2011 18:18

The perfect BB for a bit of bickering. If only HRCO could filter Hiranandani!

[envirovision] 03/6/2011 16:32

nilip - 3 Jun'11 - 15:56 - 1333 of 1333 (Filtered)

[nilip] 03/6/2011 15:56

envirovision,

There you go again - your post reads like a comedy sketch, but then, as expected.

It's one thing to spend a lot of time posting on a thread in which you actually have a vested interest with other like minded individuals as opposed to, in your case, posting with the intention of deterring others from buying or invoking others into selling, which, although you'll deny, is exactly what you have been playing at ... there in lies the scum.


Anyway, glad you achieved your objective of buying in cheaper after all the negatives you've been saying about the company over the past few weeks. Well done and GL.


BTW, suggest you read your post again, you illiterate simpleton :

"far to generous" ... it's 'too'

"Your not transparent" ... it's you're

"and like yea" ... best not to begin a sentence with an and especially with a lower case 'a'.


PS>
Apologies to all for digressing in this manner, it's uncharacteristic of me in general, but sometimes it's worth revealing the true colours of posters like envirovision. LOL! the guy calls me a little worm ? ... talk about deluded.

Enough said.

[hugepants] 03/6/2011 14:29

Well I bought some more of this horse manure this morning.

[envirovision] 03/6/2011 12:55

LOL yes I have picked up a few, but can imagine 50p sometime over the summer so staying light thanks, meanwhile why not de-ramp the hell out of it for the pile of donkey dung it is.

[nilip] 03/6/2011 11:46

darlost,

agreed - value will out in the end.

In the mean time, the likes of envirovision and hvs are quietly buying into the stock on the cheap - so transparently obvious it's laughable - who do they think they're kidding - LOL!