IN House Share Discussion Threads

[waynerwayner] 10/7/2008 10:51

Im not much of an expert, but if it is an MBO, whats the procedure, do they need to get share holder approval before they can buy it out?

I just wonder because if it is an MBO, then I wonder why they would want to buy it now, and the only reason I can see is that its actually doing OK and they want it for themselves at a bargain price before the results have to come out in October and the price jumps... are they even allowed to buy it in such a scenario, i.e. where the shareholders dont know the current trading status and outlook? How can we decide if its the right thing if we dont have the current financial info?

Thanks

[waynerwayner] 10/7/2008 10:38

Well, its a good start at least...

[alibongo612] 10/7/2008 10:33

magwash

You have no knowledge whatsoever of my experience in property.

[magwash] 10/7/2008 09:15

someone, on the fools board, asked a question regarding the terminology used in the RNS. Here's a reply :

Author: SirLurkalot
Number: 110226 of 110233
Subject: Re: Offer Talks RNS'
Date: 9/7/08 23:00

Recommend it!
Recommendations: 3

The company feel the need to announce that they are in bid talks as soon as it leaks, but at that stage they may not have made their minds up whether to recommend the bid. Within a few days a statement containing the board's recommendation of what action to take (ie accept bid or reject) would be expected.

"shareholders are advised to take no action in relation to their shareholdings in the Company."

should be translated as

"we will decide whether to recommend the bid in a few days and will make a statement then. In the meantime we suggest you do nothing with your shares until we've finished negotiations"

[waynerwayner] 10/7/2008 07:54

Wonder what will happen today... another 50% rise would be nice... :)

[magwash] 09/7/2008 22:15

yes, if you say so, Mr Chartered Surveyor.

[alibongo612] 09/7/2008 22:14

There's no gain to be had the valuations simply don't stack up

[magwash] 09/7/2008 22:05

Purchases since loan facility..........

07 NOV property acquired £185,000
GROSS POT RENT = £17,500
EST VALUATION = 250,000 PA

03 DEC property acquired £299,268
GROSS POT RENT = £22,500 PA
EST VALUATION = £400,000

06 DEC property acquired £1,008,586
GROSS POT RENT = £72,000 PA
EST VALUATION = £1,300,000

13 DEC property acquired £337,000
GROSS POT RENT = £25,000 PA
EST VALUATION = £465,000

18 DEC property acquired £262,658
GROSS POT RENT = £26,700 PA
EST VALUATION = £349,000

20 DEC property acquired £644,780 + 4,285,714 IHGP SHARES @ 0.35P (£15K)
GROSS POT RENT = £45,000 PA
EST VALUATION = £900,000

O3 JAN 08 property acquired £861,400
GROSS POT RENT = £54,500 PA
EST VALUATION = £1,200,000

10 JAN 08 property acquired £604,760
GROSS POT RENT = £38,700 PA
EST VALUATION = £ 800,000

17 JAN 08 property acquired £600,000
GROSS POT RENT = £60,000 PA
EST VALUATION = £800,000

07 FEB 08 property acquired £517,659
GROSS POT RENT = £33,300 PA
EST VALUATION = £710,000

25 FEB 08 property acquired £1,075,000
GROSS POT RENT = £70,000 PA
EST VALUATION : £1,200,000

14 MAR 08 property acquired £2,340,000
GROSS POT RENT = £220,000
EST VALUATION = £3,475,000

18 APR 08 property acquired £714,260
GROSS POT RENT = £41,300
EST VALUATION = £920,000

26 June 08 property acquired £880,000
Gross POT RENT = £50,000
EST VALUATION = £1,300,000

Total "Pot/ rent" per annum £776,500
Total valuation £14,069,000
Total purchase price £10,345,371
Total POTENTIAL GAIN £3,723,629 (appx 0.48p / share)
(IHGP MARKET CAP £856,425m APPROX @ 0.11p per share)

Total interest charges for the recent properties £9,465,371 @ 1.00% above base rate at 6.00% = £620,722 / year

[clarendon] 09/7/2008 21:56

So an opportunity to pick it up on the cheap! You can almost write the script - property prices depressed, yields down - chance for shareholders to realise some value!!!

[cyberpost] 09/7/2008 21:48

that was before Oct 2006.

[clarendon] 09/7/2008 21:42

Does the price of the loan conversion count?? Although that might be more than 12 months ago.

[cyberpost] 09/7/2008 21:36

dont think he bought any shares in the last 12 months.

[clarendon] 09/7/2008 21:31

Totally agree with you. The silence from the company makes me think that its a MBO led by Cassidy. Remember the time when this was suspended - the announcements came thick and fast via the website now nothing.

If I'm right will be interesting what the bid is - what was the highest price Cassidy paid in the last 12 months??

[tiltonboy] 09/7/2008 21:26

Clarendon,

I wouldn't trust these guys, so I'm not expecting anything.

I can dream of 0.25p, but that's all it is.

tiltonboy

[clarendon] 09/7/2008 21:19

Tilts - what your gut feeling?

[tiltonboy] 09/7/2008 21:09

KJ,

I should have added that where the company are responding to a request from the LSE due to a movement in the SP, it is standard wording.

Clarendon,

No, I will see what transpires.

tiltonboy

[kimmyjones] 09/7/2008 20:38

If he did, we will find out tomorrow.

By the way tilton, majority of offer talk announcements dont contain such wording. Its not really standard stuff.

[clarendon] 09/7/2008 20:36

Hey Tilts have you been selling today!!??!!

[tiltonboy] 09/7/2008 20:31

Absolutely nothing should be read into the wording of the statement; it's all standard stuff.

[cyberpost] 09/7/2008 19:47

clarendon - i have that feeling as well, BUT I believe they would be obliged to state its the management who want the company

[cyberpost] 09/7/2008 19:46

RNS in which such statements were made :



28 May 2008
Thus Group PLC



16 April 2008
Styles & Wood Group PLC



14 March 2008
TMN Group PLC



03 March 2008
Oriel Resources PLC

[clarendon] 09/7/2008 19:45

Kimmy - its a hunch but look at the evidence.

This will be bought out at next to nothing hence the advice not to do anything.

[cyberpost] 09/7/2008 19:19

Thanks for that kimmy.

and yes i find that line in today's RNS very odd.

Here are some recent offer talks RNSs... they dont contain such text :


08 July 2008
Georgica PLC



07 July 2008
Electronic Data Processing PLC



18 June 2008
SSP Holdings PLC


12 May 2008
Emerson Electric Co

[kimmyjones] 09/7/2008 18:55

that statement is a bit curious cp.

Its as if they are pleading not to sell your shares in the market.

[kimmyjones] 09/7/2008 18:53

CP

you asked for MC's loan conversion to shares



"Marcus Cassidy, a Director of the Company, converted £80,000 of his loan to the Group into 32,000,000 ordinary shares."


equates to 0.25p/share.