Yes that was quite a hit they took by selling at a 10 percent discount. Montefiore hold the key to the share price in the short term. I am looking to a longer time perspective though. |
The initial fall from 220p two weeks ago was entirely due to the FPCI sale of 26,500,000 shares at a price of 200p per share. In addition, there is a potential overhang of a further 18,855,481 shares (5%) still held by them with a 45 day lock-in which expires on 13 April. Whether they will retain all of these residual shares or dispose of all or some of them remains to be seen. In the meantime this uncertainty is acting as a brake on any shareprice recovery until this outcome is known. |
Excellent time for newbies to join a truly solid company. But what about the disappointment for the rest of us, already in? Recent report was good imo, so why the heavy fall? Makes no sense to me.
pete |
Long term probably a decent buy. |
In at 191. |
Another chart in tatters, resembles plenty of others atm |
FMR taken 6% |
As of today, you now mean aberdeen ...
They just dropped the silly ABRDN tag. |
ABRDN bought 1.5% of the 7% sale |
Its a €5bn fund. So not really obscure, but of course French focused so doubt many have heard of them.
Crasnianski is getting old - what he does with his stake will be interesting. It appears some of his kids are involved, but guess he could always sell up which would have implications - both positive and negative for the share price |
Agree, and still not particularly cheap for the fairly pedestrian growth you have here. |
A rather complacent reaction to the placing IMO. Given the strong French connection in the company and the slightly questionable governance aspects of the Crasnianski reign, the sale by a long standing obscure French investment group is but one step removed from a director sale IMO. And if that had been a sale of that nature how we would be feeling ? |
Lots of old 200p placing shares , hopefully now cleared |
Rude not to !! With a 10 percent discount ! |
Bought in at 195p |
Flippers are currently sat at a loss with share price below 200p then. Any price below 200p seems ridiculous value IMO. |
Much better explanation than mine. Thanks DR. B |
 To add a bit more to that
The french outfit wanted to sell a lot of shares. As above the reasons for this could be redemptions or the position had become too large (its performed very well over the last 12months) or they felt the valuation had peaked and wanted to sell. Any number of reasons. Given the speed at which they sold and the significant discount I'd guess they were a forced seller (ie redemptions) but unless they tell us we are just guessing.
They sold 26m shares in the company. A busy but normal trading day in MEGP is about 1.5m, so they can't sell in the open market as it would crash the price. So they announced last night they wanted to sell and their brokers approached potential large buyers (ie institutions) to see who wanted them and at what price. The offers came in at a rather conveniently round figure of 200p. The price has now dropped to reflect that and if the price remained at 220 I'm sure many of them would flog them off for an instant gain. I would. Hence the price here will be capped near the 200p level until the "flippers" have finished and then we can hopefully resume at the higher level. |
Thanks guys much appreciated |
FPCI Montefiore Investment IV is a French fund and it doesn't indicate any problem with MEGP - just check their results issued last Monday. What it means is that a large shareholder either wanted to take some profits, perhaps had to raise cash to service fund redemptions or were rebalancing their portfolio. |
Ok right. And does that necessarily mean there's a problem with MEGP or they just needed to raise cash? |
One company sold their shares. They wanted to sell out a load, so arranged a deep discount placing. Shares placed (sold) and as such share price fell to lower price.Bit like going to a car boot and saying take the lot for this price |
Pleased this happened...now bought more. Happy to remain a long term holder. |
Guys as a relative newby, could someone explain please in layman terms what has happened today with MEGP? Appreciate your help. |
A short term price problem could result from the potential overhang of the 18.9m shares that FCPI still retain. If they plan a complete exit then these shares could come onto the market in April. |
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