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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| New Star | NSAM | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 1.90 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 1.90 | 1.90 |
| Top Posts |
|---|
Posted at 04/4/2009 19:42 by nicd For any other CFD holders, IG just told me that when the offer cash comes in a couple of weeks, the long will be closed. That is fine for me, well if you dont count the huge loss inflicted by the NSAM criminals who lined their own pockets at the expense of PIs. |
Posted at 28/3/2009 20:56 by asmodeus So we meet again then, Doorway, in yet another loss-making venture! I'm holding on to my NSAM til the last knockings. |
Posted at 08/3/2009 08:44 by nicd not really leverage, more like greedy directors. They borrowed a huge amount simply to pay as a dividend. They should be disqualified. |
Posted at 18/1/2009 21:05 by maak128 yawn1971 - 17 Jan'09 - 22:31 - 1130 of 1131What happens if a buyer does not come forward for NSAM? nsam will go bang......... delisted |
Posted at 16/1/2009 15:11 by the big fella Sprattyken - 13 Jan'09 - 16:41 - 1091 of 1123My understanding is that the "bids" being tabled are for a post restructuring buyout. I'm quite surprised that the banks are willing to take such a hit on this. The Mail today said that the £110m or so would be for the banks and very little would make its way to the sh. I'm therefore surprised again that the boys at NSAM (who have a fair number of shares) are also happy... You seem to be overlooking the huge amount of debt these guys took on to pay themselves a divi last year. That was their payback and they knew it! |
Posted at 15/1/2009 10:30 by treacle28 Found this out on Share Crazy this morning Knowing....good luck mate.Fallen Star Every now and then the market throws up what I usually boringly call a Debt for Equity shorting opportunity. (My esteemed mentor Evil would, in less temperate terms, no doubt term it as a screaming copper bottomed no-brainer.) It happened with Marconi, Telewest, Jarvis and several other former high flyers and in my opinion is now happening with New Star Asset Management. To profit on these situations the following ingredients are needed: 1. A willingness to short a share that has fallen at least 90% already. 2. A grasp of O level Maths. 3. A little common sense. New Star Asset Management is a fallen star: A. Mainly because it borrowed £300 million that it did not have right at the top of the market (06/07) to pay a special dividend it had not earned of £364mn (yes borrowed money to pay a dividend: these things were normal in June 2007.) When I asked at the time how this could happen I was told that it was for tax reasons It was " a scheme of arrangement to return £364 million to shareholders" Well silly me. If its esteemed bankers lent NSAM £300 million for to pay it straight out in unearned "returns" to shareholders for tax reasons it must be OK. Oh and I forgot to mention that company directors and staff sold £210 million worth of stock in March 07 at 455p per share. Good timing. B. Because it lost money on the funds it was managing. Even more than its competition. Here are some factors to consider about NSAMs present share price value (4.15p) Aberdeen Asset Management recently set a marker for the current value of funds under management by paying 0.625 % for £40 billion of funds of other peoples' money formerly "managed" by Credit Suisse. (That's 0.625 not 6.25: it paid £250mn and in paper not cash) NSAM had £23 billion and now has £12 billion and falling of funds under management owing to market losses and withdrawals. To avoid oblivion NSAM has offered 95% of its enlarged equity to its bankers to forgive its net debt of £230 million NSAM has recently announced that bidders have emerged for the equity of the company, conditional on the announced D4E being effective The suggested price that bidders may be interested in NSAM is £100 million "conditional on the restructuring taking place." That is £100 million for the whole company of which the current shares make up 5% (This would make sense as being roughly a generous 1% of FUM) Here is the O Level Maths When the Restructuring takes place NSAMs current Market cap (at 4.15p) of £11.5 million effectively represents 5% of the company's equity Therefore the company is now effectively valued at £230mn Conclusion It is at least two times overvalued for a tarnished franchise (see Aberdeen deal mentioned earlier) and will be shown to be as soon as the bids emerge. These opportunities don't come around that often and in my view should be grasped. Sell at 4.15p with a sub 2p target (at 2p its a generous £115mn market cap for the company) Lucian Miers an infamous short seller is the Bard of the Boleyn |
Posted at 13/1/2009 12:33 by maak128 i had to sell..........the peak is over..... heres a reality check.....Mercier et Camier - 11 Jan'09 - 13:03 - 961 of 1076 I have no idea where you guys are getting your ridiculous valuation figures from. The bids being placed on the table are what is being offered to the banks not what is being offered to you. There is to be a 95% dilution of shareholders equity to clear the debts owed to the banks. So if a bid arrives for £115m as reported in the national press private shareholders equity in NSAM should be about £5.75m (£115m - 95%). The current market cap is £8m. So even at 2.8p the shares are almost 50% overvalued if NSAM is sold for £115m. Now there may be a slight rise tomorrow based on the weekend press but don't forget the shares are to be delisted shortly. If it rises tomorrow take advantage and sell!!. |
Posted at 11/1/2009 21:24 by mercier et camier Treacle28 - 11 Jan'09 - 21:03 - 981 of 981"Any offer has to be approved by the shareholders..." Any offer does not have to be approved by the shareholders. NSAM has outstanding debts to the banks of £240m that it cannot service. The banks call the shots here not the shareholders. The banks have put forward a restructuring plan, shareholders should be grateful they didn't file a petition to wind the company up. chry If a bid for NSAM is put forward and accepted it makes no difference if the shares are trading or delisted you will still get what is being offered for each share. |
Posted at 11/1/2009 13:03 by mercier et camier I have no idea where you guys are getting your ridiculous valuation figures from.The bids being placed on the table are what is being offered to the banks not what is being offered to you. There is to be a 95% dilution of shareholders equity to clear the debts owed to the banks. So if a bid arrives for £115m as reported in the national press private shareholders equity in NSAM should be about £5.75m (£115m - 95%). The current market cap is £8m. So even at 2.8p the shares are almost 50% overvalued if NSAM is sold for £115m. Now there may be a slight rise tomorrow based on the weekend press but don't forget the shares are to be delisted shortly. If it rises tomorrow take advantage and sell!!. |
Posted at 03/12/2008 17:28 by djpreston New Star Asset Management Group PLC ("New Star") Proposed Capital Restructuring * New Star announces a proposed Restructuring that will result in £240 million of its £260 million of gross debt being converted into equity * New Star currently has £30 million of cash so that, if the Restructuring were effective today, New Star would be left with net cash * New Star's bank syndicate will own 75% of New Star's enlarged fully diluted ordinary share capital and £94 million out of £100 million of new convertible redeemable preference shares to be issued by New Star * New Star intends to de-list as part of the Restructuring New Star announces that it has reached agreement in principle with its bank syndicate (the "Banks") on the terms of a proposed capital reorganisation of New Star (the "Restructuring") that will leave it able to concentrate on its investment performance and client service as an unlisted company. As the credit crisis has deepened since September, a number of New Star's clients have signalled their concerns about its level of debt in the face of a possibly prolonged economic downturn. These concerns have been exacerbated by the recent, but unrelated, temporary suspension of dealing in its International Property Fund. The Board believes that the reporting requirements and public scrutiny that are part of being a listed company have served to magnify these concerns. In addition, the steep fall in financial markets over recent months has resulted in a significant decline in New Star's assets under management and associated revenues. Assets under management were £13.9 billion at 30 November 2008. This will unavoidably reduce New Star's operating profits, and as a consequence, restrict its ability to service its debt in future. The Board has therefore concluded that New Star's current capital structure, and in particular its level of debt, is no longer appropriate. The proposed new capital structure is intended to eliminate any negative impact of New Star's debt on its business, whilst retaining potential value for equity holders. This will enable New Star to focus on restructuring the business, improving its investment performance and maintaining its client service. Under the terms of the Restructuring, New Star will put proposals to shareholders to de-list. On completion of the Restructuring the Banks will convert £240 million of the £260 million owed to them, together with certain other amounts owed to them, into £94 million of convertible redeemable preference shares (the "Preference Shares") and such number of new ordinary shares as together will give the Banks 75% of New Star's fully diluted enlarged ordinary share capital, calculated without taking into account the conversion of the Preference Shares. An additional £6 million of Preference Shares will be available for employee incentivisation. The Preference Shares will entitle the holders to an annual dividend of 10 per cent. above LIBOR which will start accruing 6 months following issue. This dividend will not be payable until 30 June 2013. The Preference Shares, together with the accrued dividend entitlement, must be redeemed on 30 June 2013 (or, if earlier, out of the net proceeds of any disposal) save that on 30 June 2013 New Star may elect to convert the outstanding Preference Shares into ordinary shares representing, together with the ordinary shares held by the Banks, 95% (or such lower percentage as may apply taking into account earlier redemptions of Preference Shares) of the fully diluted enlarged share capital of New Star following conversion (excluding any shares in issue pursuant to the exercise of the warrants described below). Whilst the Preference Shares are in issue, no dividends will be paid on the ordinary shares without all accrued dividends on the Preference Shares having first been paid and without the consent of the holders of the Preference Shares. The balance of £20 million of the current gross debt will remain in place and be repayable in June 2013. This compares with New Star's cash at 30 November of £30 million. In order to attract and retain key employees following the Restructuring, New Star has agreed with the Banks a senior management incentive scheme comprising warrants over a new class of ordinary shares representing 5% of the fully diluted ordinary share capital. These warrants will vest over the next 2 years subject to profit targets. In addition, minimal cost options over a total of £6 million of Preference Shares will be granted to certain employees. The Restructuring is conditional, inter alia, on signature of documentation satisfactory to New Star and the Banks, on the approval of New Star's shareholders (including to the effect that on completion of the Restructuring none of the Banks will be required to make a general offer for New Star under Rule 9 of the Takeover Code) and on regulatory approval. New Star expects to post the relevant documents to shareholders in the next few weeks and to complete the Restructuring early in the New Year. Further details of the Restructuring will be provided in due course. Commenting today, John Duffield, chairman of New Star, said: "The Board recognised the concerns of our clients regarding the level of our debt during these difficult times. We have therefore taken this radical step to address these concerns completely and with one stroke. We are now free to focus all our attention on improving our investment performance. Our existing share-based bonus scheme will be replaced by a new scheme to ensure that our key people are locked in. The cost of this restructuring is regrettably a substantial dilution for ordinary shareholders, including me. However in current market conditions, we have to recognise that there is no other option to ensure the stability of the business." Enquiries: Citigate Dewe Rogerson Anthony Carlisle (office) 020 7638 9571 (mobile) 07973 611888 Note for editors: The banks in New Star's syndicate are HBOS, Lloyds, RBS, HSBC and National Australia Bank. |
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