Mapeley Share Discussion Threads

[chopsy] 28/1/2009 17:51

Not at all today, back down to 65p. Might be worth a repeat bet soon, see how low it goes first.

[chopsy] 28/1/2009 12:21

Not atm anyway.

[orchestralis] 28/1/2009 09:03

Seen a couple of positive days since egm, could this possibly be on the up?

[tourist07] 27/1/2009 21:50

rochdale, I suspect you are spot on .....

GSands, I suspect that Fortress can take some small change out of the funds they have apparently "scammed" from shareholders to beef up the employee compensation scheme

[gsands] 27/1/2009 17:32

Rochdale,

Do not forget that the directors and employees of Mapeley hold thousands of shares. Fortress will need to be respectful to shareholders otherwise they will risk turning the workforce against them.

[rochdale] 27/1/2009 15:43

pretty badly I fear - but at least this bond issue covers funding issues in the near term

i suspect we will never see any value as divi will disappear and fortress will take the company private at some point at whatever price it can get away with doing so

[gsands] 27/1/2009 15:25

Rochdale,

Hopefully time and patience will heal the wounds.

The next drama is these HMRC closures and how badly Mapeley will be affected...

:-(

[rochdale] 27/1/2009 12:06

getting it away was what mattered but agree worrying that they only managed to get $9 from non fortress, non mapeley sharedholders

beginning to wish I had not set eyes on the yield from this company all thos months ago - cost me a pretty penny but didn't think the recession would bite this hard

[gsands] 27/1/2009 10:09

It's a pretty poor reflection on the state of the market and/or sentiment towards Mapeley that they only managed to get away 25% of the bond issue to shareholders outside of Fortress - even though the coupon was an eye watering 20%, against a BoE base rate of 1.5%.

I'm not very impressed at all.

[johnnygib] 27/1/2009 10:05

They left a chunk for the management though

[gsands] 27/1/2009 10:01

It looks like they only managed to pick up c£9m from shareholders.

Fortress have had to take the rest.

[rochdale] 27/1/2009 09:18

20% coupon seems attractive to me!

don't think they will have problems - issue here is one of recession/credit crunch

company built on high debt ratio - funds hard to come by hence the 20% coupon

[gsands] 26/1/2009 16:57

Well - they've secured funding in principle.

They still need to find buyers of the bonds, right?

[rochdale] 26/1/2009 16:54

right well at least they have secured funding - long road back though

this will be taken private and the only debate is at what price that will be

[gsands] 26/1/2009 16:01

Yes - I have always been worried about Fortresses large holding.

However, one mitigating factor is that all the directors of Mapeley - and many of the employees are shareholders.

[kenatbabken] 26/1/2009 15:55

Resolution passed.

A sharebuyback would surely make Fortress,s percentage holding even larger

[gsands] 26/1/2009 11:52

At this level, I would also be in favour of cancelling the dividend and using spare funds to buy back cheap stock.

This would go some way towards conteracting the negative impact of the bond issue on non-participating shareholders.

[gsands] 26/1/2009 11:51

Yes it is.

I am expecting the proposal to be passed. But what is less certain is whether or not shareholders will participate in taking up the bond.

[rochdale] 26/1/2009 10:10

today's the EGM isn't it?

[kenatbabken] 19/1/2009 11:12

GSands
I agree that they should of been able to reduce the amount they needed to pay
back the Delta Facility if they had £75m and obviously 6 months of cashflow
from the rentals.I suppose that Fortress are calling the shots and telling them
what to do as they try to take it private.

Are you voting at the EGM?,I hold my shares in a nominee account and I,m wondering if I,m able to vote.Can,t really see it being thrown out as that
outcome would mean nothing for shareholders.

[gsands] 19/1/2009 10:25

Ken,

Working capital is apparently not an issue, otherwise they would not be taking £20m from the pot to pay down the Delta Facility when it expires.

[kenatbabken] 19/1/2009 09:00

They do need working capital and make allowances for the closures so most
likely keeping cash for that

[gsands] 19/1/2009 08:52

Another concern is the HMRC office closures. The company have told us via emails from IR that so far they have not received notice to quit on any of their portfolio. But it this because the HMRC haven't posted the letter quite yet?

[gsands] 19/1/2009 08:51

As at June of last year the company had c£75m on it's balance sheet in cash and short term receipts. This is where the £20m is coming from to reduce the Delta facility (when it matures) from £60m to £40m.

What concerns me is why are they not reducing it further?

Since the company halved the dividend, there should be much more money being retained on the balance sheet every quarter and one would have thought they would have sought to reduce the debt further.