Lamprell Share Discussion Threads

[todismypal] 16/5/2014 08:06

The lack of knowledge re rights issues is surprising here. For every 16 current shares you own you have the option of 5 more at a price of 88p each. Its that simple. Rights issues are usually poorly received by the markets as the underlying reason for them in the first place is often masked. In this case we are being told that the reason is to basically shift the debt from existing arrangements to us the shareholders. For a calculation re the rights issue might I refer you to mad foetus's post earlier
Personally I do not consider this rights issue to be bad news provided the reason for it is as stated and not a smoke screen by the Board

[srpactive] 16/5/2014 08:06

The mkt might see this as a turning point with a
possible dividend, I have been in lots of RI's and
some are good, some not.

dyor

regards

active

[davr0s] 16/5/2014 08:04

So why no gap in the price? Is it because the rights aren't owned yet and when they do the gap occurs - to 132 assuming the market views this as neutral?

[trigger blade] 16/5/2014 08:00

So, in the two days prior to the announcement, the share price dropped from 155 to 146, is that coincidental or indicative of less than watertight information system?

[bob2011food] 16/5/2014 07:58

so holding in a spread bet, were f---ked, were not entitled to any shares in a rights issue????? or are we?????

[skinny] 16/5/2014 07:53

Hmmm.

· The Issue Price of 88 per New Ordinary Share represents a discount of 39.7 per cent. to the closing price on 15 May 2014, and a 33.4 per cent. discount to the theoretical ex‐rights price.

[tom111] 16/5/2014 07:49

The market never likes rights issues especially surprise ones but best to take them up and sell at a premium in the market hopefully imho wouldn't surprise me if this dropped below 1.20p

[srpactive] 16/5/2014 07:48

If the family take their full allocation up, and
maybe all other shareholders do not,they will
increase their percentage.

That is my take anyway,

dyor

regards

active

[davr0s] 16/5/2014 07:48

Also if I read this right if I Takeuchi rights up at 88p then a neutral share price would today be 132p. - albeit I'll have more shares than before. just getting my head around this before the price starts bobbing around !

[spob] 16/5/2014 07:46

If you dont take part you are diluted

so the value of your shareholding drops

if you do take part you have to stump up more cash to maintain your original shareholding

either way, you are are financing the companies debts, whether you like it or not :)

[davr0s] 16/5/2014 07:46

Not so bad then - why do you see Mbo more likely after this ?

[srpactive] 16/5/2014 07:44

Yes, also it can allow dividends to be paid due to
clearing facility B.

This is another step towards a mbo imho.

Yes normally you can sell your RI allocation.

dyor

regards

active

[davr0s] 16/5/2014 07:40

So your reading is we can take part as well in buying at 88p?

[mad foetus] 16/5/2014 07:38

If you don't take up the rights issue, the number of shares you have stays the same. But the rights issue has value and you may be able to sell you entitlement, I can't quite remember. This isn't bad news - the existing debt is simply being refinanced by the existing shareholders. Nothing is being discounted, nobody is losing out or being let in on the cheap.If it was an open rights issue that would be another thing altogether. But reading between the lines, the Lamprell family said they had spare cash and were willing to invest in the company and Moffat thought LAMs facilities could be upgraded and the B debt paid off. It would, of course, be better if that could be funded from trading profits, but what is proposed is pretty neutral. It would have been nice if it had been accompanied with news of another order mind.

[davr0s] 16/5/2014 07:37

Wonder why they felt the need to price it so low? That's lower than the darkest days 2 years ago. Looks like endless patience here not going to be rewarded then

[deanowls] 16/5/2014 07:33

No, you just own less of the company.

[davr0s] 16/5/2014 07:32

So to clarify - if I hold shares now, and don't take part in the right issue do the number of shares I have change?

[bulltradept] 16/5/2014 07:31

Only £1.32, you are hoping aren't you..

[mad foetus] 16/5/2014 07:23

5 for 16 at 88p means that 16 current shares at 150 (£24) plus 5 times 88p (28.80 in total) will be equivalent to 21 new shares. So if share price drops to something like 132 it will actually be no change

[bulltradept] 16/5/2014 07:22

Rights Issue?

Who saw that one coming then?

I mean really.

[tom111] 16/5/2014 07:20

Expect the share price to get hammered

[addison17] 16/5/2014 07:15

mmmmmmm an Ok Trading Statement, and mmmmmmmmma a Rights Issue, great I wonder how the Sp will react to that this morning.

[bgwesley] 15/5/2014 14:57

Next time anyone on this site predicts the share price is about to take off - swear I'm gonna sell! :-(