Mercia Asset Management Share Discussion Threads

[wan] 18/10/2019 08:37

The current discounts can cause other things to happen though, and I note that Wincanton is currently weighing a bid for one of Woodford's investments, Eddie Stobart.

[p1nkfish] 18/10/2019 08:31

And for those trapped in his holdings that are now waiting to see what the market bids for them knowing they must be liquidated.

[wan] 18/10/2019 07:41

To be clear though, the difference is that Mercia is not a Woodford owned fund, so Mercia investors are not on three months notice! But Woodford did own 20%, which has been transferred.

So, the worst scenario (if the current discount is not tempting enough) is a discount sale of that 20% holding. And unlike some of Woodford's other investments, Mercia is performing and growing.

But one has to ultimately feel for those private investors trapped in Woodford's fund and having to accept whatever is recovered!

[rambutan2] 17/10/2019 18:51

Re WIM. I know which pot MERC will be put in - not Blackrock's...

What happens next?

FCA rules mean investors must be given three months’ notice before a fund can be wound up. So the process of liquidating the fund will begin on 17 January 2020.

In the meantime, Link has divided the Equity Income Fund into two parts. The first contains listed assets that can easily be traded. These will be taken over by US investment giant Blackrock.

Blackrock will sell these shares and switch the money into money market funds and FTSE 100 index securities, ahead of liquidation. The remainder of the Equity Income Fund consists of unlisted and hard-to-sell listed assets. These are being handled by a specialist adviser (Park Hill - ) who will work to find buyers for these assets.

After 17 January, Blackrock will liquidate its part of the portfolio. The cash will be returned to shareholders — Link says it hopes to make the first payment by the end of January. Further payments will be made when possible, after the deduction of fees incurred in the liquidation of the fund.

If you’re an investor in the Woodford Equity Income Fund, you should receive a letter from Link Fund Solutions with more details. The liquidation will apply to all investors in the fund.

[p1nkfish] 17/10/2019 15:17

Bounce to what level do people expect when this mess is finally cleared?

It's a wake up call to all concerned about liquidity of portfolio holdings & liquidity of major shareholders. Merc has suffered because of both.

[pugugly] 17/10/2019 14:37

Not sold out to a 3rd party - Just registed in name of Link Fund Solutions Ltd with Woody's dparture - So what price will they fetch in the fire sale -
Sorry for anyone who was sucked in yesterday by the misledaing impression that the shares had been firm placed - Unless another rns still to come - If not misleading time delay (imo)

[wan] 17/10/2019 14:04

There's the other/matching holding announcement!

[p1nkfish] 17/10/2019 12:22

Double checked, it would have been triple bottom but has passed through. Not healthy looking.

[p1nkfish] 17/10/2019 12:19

Double bottom from sept 2018 or will it pass through lower?

[wan] 16/10/2019 08:23

A transfer suggests that someone sees good value/potential, plus one assumes we will get another holding announcement/s.

[pugugly] 16/10/2019 08:21

OK - So who has taken the Woodford stake or has it been salami sliced?

[stevenb3] 16/10/2019 07:39

There you go, RNS this morning says Woodford stake now below 5%. Should bounce this morning.

[stevenb3] 15/10/2019 16:24

I notice that Woodford stake in Arix has gone below 5% today so I am assuming that their Mercia stake is also being aggressively reduced. I expect an announcement soon and then a jump in the price.

[p1nkfish] 15/10/2019 11:46

Dont worry, management will devalue their options downwards. That's all that matters to Merc.

[pugugly] 15/10/2019 11:35

Now Woodford in fire sale situation any thoughts as to where the Woody 20% holding might fetch, and who might take it - Remember his previous coy Invesco also hold 29.2%
Not IMO a promising situation for the SP

Watching but waiting.

[wan] 29/8/2019 08:26

Interesting news elements for Augusts over at one of Mercia's portfolio companies -

[p1nkfish] 01/8/2019 10:43

More dilution to a total of 4%.

So far virtually zero payback for shareholders.

[gary1966] 01/8/2019 09:38

Only thing I would point out is that they aren’t for free and there is performance criteria that has to be met. Unfortunate timing after the Woodford induced fall though.

[p1nkfish] 01/8/2019 08:56

Totally agree Red.
Not good.

[redartbmud] 01/8/2019 08:15

Grant of Options

Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused specialist asset manager, announces that options (the "Options") over a total of 3,794,000 new Ordinary shares with a nominal value of 0.001p each in the capital of the Company ("Ordinary Shares") were awarded yesterday pursuant to the 2014 Mercia Company Share Option Plan at an exercise price of 33.50p per Ordinary Share (being the closing mid-market price of an Ordinary Share on 31 July 2019). The Options will, subject to the satisfaction of the performance condition, vest in three equal tranches on the third, fourth and fifth anniversary of the date of grant of the Options.

The Options represent, in aggregate, 1.25% of the existing Ordinary share capital of the Company and have been issued to a number of employees of the Company.

Following these grants, the Company has a total of 13,372,000 unvested options pursuant to the 2014 Mercia Company Share Option Plan, equating to approximately 4.41% of the existing issued Ordinary share capital of the Company.

Very clear statement here - We run the business for the behefit of the executive directors only.

[redartbmud] 01/8/2019 08:13

Grant of Options

Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused specialist asset manager, announces that options (the "Options") over a total of 3,794,000 new Ordinary shares with a nominal value of 0.001p each in the capital of the Company ("Ordinary Shares") were awarded yesterday pursuant to the 2014 Mercia Company Share Option Plan at an exercise price of 33.50p per Ordinary Share (being the closing mid-market price of an Ordinary Share on 31 July 2019). The Options will, subject to the satisfaction of the performance condition, vest in three equal tranches on the third, fourth and fifth anniversary of the date of grant of the Options.

The Options represent, in aggregate, 1.25% of the existing Ordinary share capital of the Company and have been issued to a number of employees of the Company.

Following these grants, the Company has a total of 13,372,000 unvested options pursuant to the 2014 Mercia Company Share Option Plan, equating to approximately 4.41% of the existing issued Ordinary share capital of the Company.

Very clear statement here - We run the company for the benefit of the executive directors only.

[aishah] 30/7/2019 20:57

Forced seller gives an opportunity imo

[redartbmud] 30/7/2019 15:20

Every sale needs a purchaser, and for them to hold onto the shares for a while. Flooding the market will only result in a lower share price, in the short term.

[p1nkfish] 30/7/2019 15:10

Sooner he's cleared the better but not a vast amount of interest in taking his stock.