The Local Shopping Reit Share Discussion Threads

[hindsight] 10/12/2018 11:36

From my reading they will be suspended pending the MVL vote tomorrow which if doesnt pass means they wont be delisted

[topvest] 10/12/2018 11:10

They will per the RNS last week and the circular.

[tiltonboy] 10/12/2018 09:46

Shares won't de-list now!

[topvest] 10/12/2018 09:01

I'm sorry, but I've managed to sell my shares on a non-standard T+1 settlement basis through Charles Stanley Direct. At nearly 30p it was a very good price in the circumstances. I do hope its not Thalassa buying.

[topvest] 10/12/2018 08:07

Fair points by Thalassa "the evil", but they are just upset that they haven't had the opportunity to hoover-up shares at a discount and take control. LSR have delivered everything in this "under-hand" way to stop Thalassa from "stealing" from other holders. The timetable appears to have been perfectly executed. The company is virtually dormant. There is no other option except wind-up or use as a cash shell. I would suggest the latter option is what Thalassa want so they can "take" the money.

[topvest] 10/12/2018 08:00

Still no clarification on trading today.

[hillofwad] 10/12/2018 07:12

"The aggregate gross price achieved for these properties was £2.6 million, representing a combined discount to 30 September 2018 valuation of 6.2%."

Blimey their valuers have shown themselves to be pretty wide off the mark in just 2 months and thats without selling costs!!! !

[topvest] 09/12/2018 18:22

I think the Board have tried their best, but done a fairly poor job. Basically, the quality of the portfolio was poor and their assets subject to both technological obsolescence and the impact of gearing when values diminish. Costs have also been too high, but they did have a large portfolio to manage. On the other hand, I think Thalassa have arrived from the cesspit and are out to effectively take what they can from the 75% majority. They talk a good game, but their preference share scam and their recent comments on LSR and how it would generate a significant return (when it’s generated no return to anyone else) show clearly the mindset and greed. You can’t do a good deal with a bad person. We are now in trouble. Evil has landed. If anyone has a good word to say about Thalassa, I’m of course willing to listen.

[frazboy] 09/12/2018 16:26

Looks reasonable to me centipedeYou could add that 99.96% of votes registered by the company, with the exception of Thalassa, to date, have voted for the liquidation option.

[centipede] 09/12/2018 15:53

Just reminding myself and summarising for others what has been going on here. Is there anything I should add?

I’m thinking of sending this to various people and financial bodies. Any suggestions?

“LSR (Local Shopping Reit) has owned a range of basic commercial properties. Due to a significant discount of the share price related to the value of these, it was decided in July 2013 to dispose of the properties and to return the money to the shareholders.

This has taken an inordinate amount of time, and it is only now (nearly 5 ½ yrs on) that LSR is finally starting to complete the process. Various management fees have been draining out of the company, and the sales have been at a general loss to the stated book prices.

In 2016, a separate company Thalassa (which provides marine geophysical, and other, services), led by their chairman Duncan Soukup, then decided to buy a significant proportion of LSR’s shares (just below 25%).

Following this, Thalassa then tried to get their own representatives onto the board of LSR, with an apparent view to unlock the ever-decreasing value in the company.

This was defeated, and the process of selling the properties was then (finally) started by LSR.

2 yrs on, and LSR is now ready to start to distribute the amounts which remain. However, Thalassa has now swung into action and blocked the process, by virtue of now apparently owning more than 25% of the company. This seems particularly unjust, as apparently 99.96% of votes registered by the company, with the exception of Thalassa, to date, have voted for the liquidation option.

As the properties have now mostly been sold, it is hard to see what Thalassa/Soukup can gain by this manoeuvre. If they were to somehow get more than their share of the proceedings, this could only be by taking money from the other shareholders in some way.

Also, it seems very likely that if there is an argument based on technicalities (for instance that the board of LSR deliberately damaged the interests of shareholders), then this would result in an expensive legal battle. There will then presumably be even less money available to shareholders (including Thalassa/Soukup).

As some background, there have also been some strange recent events at Thalassa, with the issuing of preference shares (with 10 votes each) to all existing holders. The thing is that once sold, the voting rights to these disappear. All of this will mean that over time, voting rights (and control) will quickly become concentrated into the hands of those holding onto their shares (presumably board members).

As a private shareholder, I no longer have any trust in the intentions of any of the parties involved. I feel that this has brought the whole system into disrepute, and will therefore damage the normal process of investment and the development of businesses. ”

[topvest] 08/12/2018 17:22

They can’t really do that option fully as they have insufficient distributable reserves to do anything else but pay an initial dividend. All routes lead to a messy and costly court battle. I’d rather lose a bit of money then let Thalassa anywhere near my shares. We should all hold the line against the vultures. It’s a now a battle of “good” against evil.

[scburbs] 08/12/2018 17:10

Thalassa voted against nearly all of the AGM resolutions so not sure the company did enough to engage with them, albeit they may be on the erratic side.

Looking back at the AGM results it appears that the share buy back authority failed to pass due to Thalassa’s votes. Therefore, they don’t appear to be able to do a buyback or tender offer.

Let us hope they don’t have to resort to paying a dividend as the tax result could be awful.

[andyr0503] 08/12/2018 16:16

The only provision that I could find to thwart Thalassa would be a “just and equitable” compulsory liquidation initiated by the board or a shareholder who thinks they will lose out as a result of Thalassa’s actions, in the courts. Mentioned in the Insolvency Act and Companies Acts. Usually the judge will want the situation to be resolved in another way, the obvious one being that Thalassa would be obliged to offer a price equal to the net asset value.

[frazboy] 08/12/2018 15:58

Presumably at 30% they have to make an offer topvest - derisory or otherwiseAnd, I would like to think had the board known that DS had, with his power of 'negative equity control', to get control on the cheap they would have pursued an alternative route to repatriate funds to shareholders, if indeed one exists. Or, is the case that if you have a blocking stake, you can always shaft the remaining shareholders in situations like this one. Possibly... you can't even mitigate the risk by buying Thalassa due to corporate governance issues.I'm watching with great interest and would be doing so even if I wasn't a stakeholder

[topvest] 08/12/2018 15:46

Thalassa will now try and take control hoovering up any large blocks at a massive discount from institutional holders that are too embarrassed to admit that they still hold this dog by year-end!

[topvest] 08/12/2018 15:45

I think that the Board probably issued Friday's news after trading ended so that Thalassa cannot buy shares on the cheap. After all, it very convenient to announce 1 hour after the final days trading! When did Thalassa indicate their voting intentions...probably days before? If you read the circular, it implies that any sales under CREST on Monday will NOT get settled and therefore you effectively cannot sell unless you can transfer ownership and settlement immediately. See my post above. We've been had unfortunately.

[eeza] 08/12/2018 14:54

Woodford holds a large stake in NRR - and he's under intense redemption pressure elsewhere. If he has to sell some of NRR to meet needs elsewhere it could go ( a lot) lower.

[skyship] 08/12/2018 14:48

Personally I sold out here c2months ago at an average of 30.5p. If I still held I would still sell due to the possible delisting and limited upside. I remain a very interested observer and hope holders will be rewarded with 33p.

In the sector I am happy to hold HCFT & RGL, together with a residual few EPIC.

I'm getting shifty-fingered over NRR - now down below 220p!

[frazboy] 08/12/2018 13:55

The suspension but not the permanent delisting

[topvest] 08/12/2018 13:52

The arrangements for the General Meeting, including the suspension of trading in the Companies Ordinary Shares remain as set out in the circular published on 16 November 2018.

[eeza] 08/12/2018 13:40

I don't think the MM's will be playing Santa if the shares aren't delisted. I doubt that 30p will be available (Bid).

[frazboy] 08/12/2018 13:28

I had assumed that if the special resolution was rejected the delisting wouldn't take place

[topvest] 08/12/2018 13:27

Except that you can't now sell, so Thalassa has no mechanism to buy. Still being delisted I believe, unless this changes on Monday.

[frazboy] 08/12/2018 12:08

So DS blocks it, then acquires in the market in the ensuing sell off (after 12th December) up to 30% (limit without making an offer) then makes his offer? Well, you certainly wouldn't want Thalassa paper in an offer, so would have to be cash. And it's not in his interest to offer more than say 30p. But I still can't see it being accepted. Meanwhile the board continues with, the more expensive, the plan B cash distribution.Are there any other strings DS can pull to get himself on the board etc?