Manroy Share Discussion Threads

[thorne3] 13/1/2014 17:15

It seems to me that if the 49% holding in Musa can be satisfactorily disposed of, Manroy would represent a more manageable and potentially profitable business particularly in the eyes of Herstal.Indeed I would suggest that the takeover discussions with Herstal have prompted a thorough analysis of the company's business resulting in the decision that has now been taken.This in my opinion is a very favourable development irrespective of what happens on the bid front.

[lanzarote666] 13/1/2014 17:14

So has JP Morgan got the timing of their underweight rating sent to investors on Friday wrong?

[battlebus2] 13/1/2014 17:08

So nearly 40% of the current share price, and as you say the path is clear for a suitor to look at the U.K. business. Either way i like the direction this is going.

[temelco] 13/1/2014 17:04

Yes interesting. 1)Potential purchasers don't want MUSA 2)So somehow it has to go 3) options are shut it and sell equipment and orders 4)Sell it to someone else. Value? They paid $6million for Sabre etc etc and if I remember correctly £3million for 49% of Musa so....£5-7 million?

[battlebus2] 13/1/2014 16:58

Could we be selling our stake in MUSA??? And what is it worth??

[battlebus2] 13/1/2014 16:51

Interesting development..

MANROY PLC ("Manroy" or the "Company")

PRODUCTION EXPANSION, ASSOCIATED FUNDING FROM A RELATED PARTY

AND REVIEW OF STRATEGIC OPTIONS RELATING TO MANROY USA

Manroy, the AIM listed UK Defence Contractor, is pleased to announce that it is expanding production capacity at its Slade Green facility to enable construction of military rifles. The total capital expenditure and working capitalrequired for this expansion is estimated at GBP0.75m.

Funding for this expansion has been provided by Caledonian Heritable Limited ("Caledonian"), a 23.1% shareholder in Manroy, pursuant to a loan agreement entered into on 28 November 2013 (the "Loan Agreement"). This funding and associated interest totalling GBP0.35m is structured to be repaid by 28 November 2014 from the cashflow receivable by Manroy on sales of the resultant products to an existing customer. Orders for these sales were announced on 25 March 2013 and originally envisaged an intra-group order of approximately GBP5.0m to Manroy USA ("MUSA"). However, the new production capacity will enable these to be manufactured entirely by Manroy in the UK, thereby significantly increasing the profit earned by the Group from these sales. UK Government export licences for these products have already been obtained by Manroy.

Given Caledonian's shareholding in the Company, entry into the Loan Agreement by the Company is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies (the "Transaction"). The Company's directors, having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the Transaction are fair and reasonable insofar as the Company's shareholders are concerned.

On 20 December 2013 theCompany announced that in accordance with Rule 2.6(a) of the Code, each of Herstal SA ("Herstal") and Beretta Holding S.p.A ("Beretta") must, by not later than 5.00 p.m. on 14 February 2014, either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. The Company also announced that it could approach the Panel for an additional extension to this deadline in due course in accordance with Rule 2.6(c) of the Code. Further to that announcement, Manroy confirms today that it is considering strategic options relating to its 49% shareholding in MUSA.

Glyn Bottomley, Manroy's Chief Executive, said: "This increase in production capacity, and its associated funding, are expected to produce significantly increased profitability on this contract than previously because major components will now be manufactured in-house rather than being sourced externally. The additional review of strategic options for our investment in MUSA is planned to enhance value for our shareholders."

ENDS

[battlebus2] 20/12/2013 07:39

Talks not dead in the water yet it seems....

Extension to deadline

This announcement is not an announcement of a firm intention to make an offer under Rule 2.7 of the City Code on Takeovers and Mergers (the "Code") and there can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.

Extension to deadline in accordance with Rule 2.6(c) of the Code.

On 26 November 2013, the Company announced that, in accordance with Rule 2.6(a) of the Code, each of Herstal SA ("Herstal") and Beretta Holding S.p.A ("Beretta") must, by not later than 5.00 p.m. on 24 December 2013, either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. The Company also announced that it could approach the Panel for a further extension to this deadline in due course in accordance with Rule 2.6(c) of the Code.

Following such a request from the Board of Manroy, the Panel has consented to an extension of the deadline to 5.00 p.m. on 14 February 2014 by which time each of Herstal and/or Beretta must either announce a firm intention to make an offer for the Company or announce that it does not intend to make an offer for the Company. This deadline will only be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.

The Company remains in active discussions with Herstal. The discussions with Beretta are not active but have not been terminated.

There can be no certainty that an offer will be made for the Company, nor as to the terms on which any offer may be made.

[temelco] 09/12/2013 10:58

Another serious player....

[temelco] 09/12/2013 08:35

BB2. Couldn't agree more....

[battlebus2] 09/12/2013 07:24

Yes very good news, there is no doubt these are worth 120 and shouldn't be sold for less imv.

[tanneg] 09/12/2013 07:07

Good timing and good news!

NEW ORDER AND INITIAL FIRST ARTICLE APPROVAL ("FAA") FOR MANROY USA LLC ("MUSA")

Manroy, the AIM quoted UK Defence Contractor, is pleased to announce that it has been awarded a further £0.5m contract for its new GPMG product from an existing customer. It is expected that this contract will be delivered within the current financial year, subject to standard license approval processes.

Manroy is also pleased to announce that MUSA has received FAA for one of the products under the contracts novated across from Sabre Defence Industries LLC. This now releases $3.2m of the $10.6m of novated contracts awaiting FAA approval. Production will start this month with subsequent monthly deliveries starting in January 2014 for a period of about 2 years.


Glyn Bottomley, Manroy's Chief Executive, said: "The new UK order is the result of Manroy providing ongoing support and excellent service to this existing customer. The award of the FAA approval is a momentous step for MUSA and we look forward to completing the final FAA process for the remaining products."

[temelco] 06/12/2013 20:16

Yes of course they do - but that is quite a big bet. Along with the 5% the other day

[iii spy] 06/12/2013 19:30

It may not be relevant but anyone with more than 1% has to declare hence the run on RNS holdings.

[temelco] 06/12/2013 18:37

And who on earth is Ms. Tobias? Curiouser and curiouser

[temelco] 04/12/2013 21:59

What do you reckon that 659,000 trade was all about? And at least two lots of arbitrageurs have picked up discloseable stakes

[overthebridge] 02/12/2013 22:59

Still cheap at £1+ IMO.Set the alarms

[daybreakers] 02/12/2013 21:51

That is what I heard, obviously now thinking about it, nothing is guaranteed in life except for death n taxes.

[temelco] 02/12/2013 12:39

Daybreakers so you are going for £1.10 - £1.20

[temelco] 01/12/2013 00:17

Well it would certainly HAVE to be agreed as the board and its friends control the company and can deliver a lock out to any bidder. That said, they are unlikely to go for a "low" premium. Their options only vest at 95p and they are unlikely to just throw them away. I'd bet north of £1.20 ie a premium of 60%+. I'll take that.....

[eburne1960] 30/11/2013 21:51

Today's FT is speculating MAN could be leaving the market - it quotes "people familiar with the company" saying "the management felt its lumpy revenue stream made it ill-suited to the public market". Maybe we could be in line for a low-premium agreed bid?

[temelco] 29/11/2013 12:47

For what it's worth, the RNS with the Directors share options is, I think, interesting reading. Basically the strike price is 95p. Now unless things were going badly ( which I don't think) the board would be very unlikely to vote for a price UNDERE their strike price. On the assumption they'd want at least 25p a share to themselves, I'd say the take out has to be north of £1 and probably around £1.20. Or more. And don't forget they can deliver a lock out which has to be worth 10 or 20p extra....IMHO.....

[bookbroker] 28/11/2013 08:25

Maybe their underpants, I'm not so sure about weapons, most of it rigorously monitored, don't want your GPMG falling into the wrong hands now do we Colonel!

[temelco] 28/11/2013 08:24

And the MMs of course are doing what they do best - playing on fear. They've sold lots of stock higher up and now are taking the opportunity to load up again