Interserve Share Discussion Threads

[fenners66] 11/3/2019 16:25

Bear in mind the Directors have said they will NOT take up their rights....

[bouleversee] 11/3/2019 14:56

I really can't get my brain round this at all. I read that if the IRV proposal doesn't succeed at the meeting, the company will immediately go into pre-pack administration so the Coltrane proposal won't even get a chance to be voted on so what is the point of their putting it forward.

Also, I don't understand whether if IRV's latest, slightly improved proposal is accepted, those who don't take up the offer will retain any value in their shares. I can't say I am inclined to add any more money, having done so after the first big drop on the assumption that it was just a temporary hitch which they would recover from.

[tonysss13] 11/3/2019 13:02

another bump coming?

Interserve lenders in talks about last-ditch deal sweetener
Lenders to the outsourcer are in talks about handing over 7.5% of its equity ahead of Friday's crunch vote, Sky News learns.

hxxps://news.sky.com/story/interserve-lenders-in-talks-about-last-ditch-deal-sweetener-11662097

[muzerewa] 11/3/2019 12:35

Thank you CC2014. All good points. Just trying to evaluate stand alone investment case for taking up rights vs not doing so. Re post deleveraging bounce if there is a realistic prospect now of the plan not going through, thus causing shareholder wipeout, this must surely affect share price and if uncertainty is removed that would surely be a positive. Of course the consequences of "no-deal" are not entirely predictable. Coltrane seems to consider a more favorable outcome for shareholders to be possible, though whether that's realistic I have my doubts.

[greenroyd] 11/3/2019 12:33

The Vulture funds that have bought debt at a 50% discount to face value are being offered shares at 15.3p in exchange for face value debt. They have immediately doubled their money and could afford to sell up and move on at a share price well below 15p.
Thats what concerns me about hanging on to my shares or taking up the rights.

[cc2014] 11/3/2019 12:21

Your analysis re buying now vs buying in the open offer is correct. If you buy now you run a risk your shares are completely wiped out in a few days, whereas if the deleveraging plan is not approved the open offer will not go ahead.

However, the share price post deleveraging could go down as well as up. Don't forget some of the bondholders will be able to trade their new shares on market to crystallise their cash. If you are RBS who are not in the habit of owing businesses this may be attractive. Even selling their shares at a 20% discount to 15.3p may seem attractive. I'm not saying this is going to happen but it is something worth thinking about.

Finally I have to ask. If you currently have a balanced portfolio where IRV is no more than 5% of your portfolio, your portfolio would be £100k of which 5k is IRV. If you go for the OO, you have to invest 95k, taking your total portfolio to £195k at which point IRV is over 50%. Or you have no more capital you have to sell all your other investments which will make IRV 100% of your portfolio.

[muzerewa] 11/3/2019 11:03

My broker is imposing deadline of today to confirm whether I am taking up rights offer.

If as a shareholder I let the rights lapse I am accepting 95% dilution of my stake in the company.

Alternatively if value of my investment is say GBP5,000, I need to pay ca. GBP 100,000 to avoid dilution.

Or if I take up part of my rights I accept partial dilution..

Should I take up all or part of my rights? Exercise price is 15.30p but shares now available on market at under 14p? Why bother to acquire shares via rights issue if I can get them cheaper on the market?

I suppose the answer to my above question depends on whether Deleveraging Plan is likely to be approved. If it is not approved, I presume the rights issue will be cancelled. It also means, at least according to the Board, that the creditors take control and shareholders may be wiped out. Thus it seems the benefit of purchasing shares via the rights issue, as opposed to on market, is I know I will be purchasing shares in a deleveraged company. By contrast if I buy shares in the market now, there seems a non-negligible risk that Deleveraging plan will not be approved and my shares wiped out.

Please tell me someone if you see flaws in my logic. I imagine if the Deleveraging plan is approved there will be some bounce in the price from current levels. Hopefully from the price payable under the rights issue. But I may be missing something here...

[losses] 11/3/2019 07:55

Interserve set for pre-pack administration if debt deal fails -sourceHttps://uk.finance.yahoo.com/news/interserve-set-pre-pack-administration-200644715.html

[ramprasad] 11/3/2019 07:35

no,is'nt it on Monday the 18th March-- according to FT?
Is anybody taking up the offer 0f 19 shares for 1 existing share?
Any thoughts? Deadline is 13th March?

[daffyjones] 10/3/2019 23:27

Prepack administration coming tomorrow

[bouleversee] 10/3/2019 21:09

Why? It may be the only way to prevent administration but we would still be wiped out, especially if we didn't take up the offer. There doesn't seem to be much point in voting at all. Am certainly not risking any more of my capital, having lost a huge amount already.

[cerrito] 10/3/2019 19:41

While I am no longer here,I did read with interest a long interview in the Sunday Telegraph with the Chairman.
If I was still a shareholderI would vote for the original deal rather than the Coltrane one

[yessir3] 08/3/2019 14:21

So there’s a general meeting on 15th March with a vote on deleveraging plan then another general meeting on 26th March requisitioned by Coltrane, is that right?

[oliversanvil] 08/3/2019 07:48

Interserve scored a second victory on Thursday in a long running feud with its biggest shareholder, Coltrane Asset Management, as Europe’s largest independent shareholder advisor backed a rescue deal designed to save it from administration.

[killieboy] 07/3/2019 18:30

The end is nigh...……;……

[oliversanvil] 07/3/2019 16:43

334 15.0 1117042 O




14.54

14.89
16:37:56 1,117,042

[jimboyce] 07/3/2019 11:45

Get out quick, this is going to be liquidated.

[sbs] 06/3/2019 07:40

Following the issue of deferred shares at 9.9p last year, the nominal value of the shares is now 0.1p.

The reported Coltrane proposal for a rights issue at par looks like being at this price - so shareholders would be very much incentivised to take up their rights to avoid dilution, and Coltrane would probably not have to stump up all the underwriting cash.

Basically a bet on the company having any value, which obviously many people believe it has.

[cobbles1] 05/3/2019 22:14

I also work there and would love to know what we're apparently missing... For those who have invested years of time and effort as well as hard earned cash in shares and pensions to be shafted like this is nothing short of disrespectful.

[billtucker] 05/3/2019 20:32

You beat me to it. It’s irrelevant where we work, as that has nothing to do with these discussion. This forum is to have a intellectual discussion with other investors, not give out personal information.

You said we’re not upto speed, maybe you can fill us in on what we’re missing?

[whoknowswhoknowswhoknows] 05/3/2019 20:12

What site I'm on really is of no consequence to this forum. You made an allegation that implies you know something else, but we've all seen the same news and there's nothing new crept out yet. I think Bill and I know we work there, and that's enough for me.

[oliversanvil] 05/3/2019 19:31

Your response is a bit slow!

[oliversanvil] 05/3/2019 19:07

What exactly do you? Which site?

[billtucker] 05/3/2019 18:56

And how is that?