Plethora Solutions Share Discussion Threads

[catscats] 19/2/2016 10:04

I think the MM are just playing with the PIs...they know that there will a steady stream of sellers who will be scared of holding HK or Frankfurt listed equity...and there will always be those who look at the discount to RP shares offer - think it is a steal and jump on. With a fat spread the MMs are making out...we all know that the RP share price will come down by 1/2 when the offer goes through...so u buy at 3.5p - get 15x RP shares (worth about 4.4p if RP shares are HK$0.035) and the gain is 25% - hardly worth the hassle of the transferring the shares to HK...and then there is the business risk...

If investors thought otherwise then the shareprice of PLE would be at least 6p...but sadly that is not the case....

Of course I may be wrong and RP share stays at HK0.07 and PLE are a steal...but the market is not often that wrong IMHO

[richf75] 19/2/2016 09:34

Well, the original share offer reflected around 12p per PLE share (if memory serves) which was to give those from the placement at 9p a bit of profit. As it is, they might just get their money back on the day, plus whatever happens thereafter. Although hopefully yesterday's showing suggests some people getting back onboard ahead of the offer date.

[cyberbub] 18/2/2016 23:53

Just looking in here. Is Mellon really planning a takeover at approx 3x the current share price?? (Albeit in paper)

[bonzo] 18/2/2016 17:38

About b....y time!

[mortimer7] 18/2/2016 17:26

Yes, opportunity being recognised today, up 30%.

[daicaprice] 18/2/2016 16:45

Looks like a few more agree with you Mort, I certainly have no problem.

DC

[tsmith2] 18/2/2016 16:43

Looks like overhang clearing...

[mortimer7] 17/2/2016 19:07

I understand people may be wary of the logistics of dealing in the new shares, but in light of the above, with PLE currently at 2.75p and a possible premium of 241.3% the financial benefit far outweighs the hassle IMO.
(Regent Pacific still at HKD0.069 today)

[mortimer7] 17/2/2016 18:57

I thought it may be helpful to share some extracts from information received from a share dealing service I use (Halifax):-

"The Acquisition, based on the Closing Price of a Regent Pacific share of HKD0.069 (equivalent to 0.6 pence) on 29 Jan 2016 (being the last practicable date prior to the publication of the Scheme Document), represents an indicative value for each Plethora share of 9.81 pence per share, valuing the fully diluted share capital of Plethora at approximately GBP96.27 million.
The Acquisition, at the indicative value of 9.81p per Plethora share represents an indicative premium of approximately 241.3% to the Closing PLE Price of 2.875p on 29 Jan.

Please be aware that the New Regent Pacific shares will be admitted to trading on the Hong Kong Stock Exchange; as a result we will be unable to facilitate trading in the Regent Pacific shares via our sharedealing facility.

Regent Pacific also maintain a listing of the shares on the Wertpapierboerse of the Frankfurt Stock Exchange. As such, upon receipt of the shares, we will endeavour to transfer them to the Frankfurt Stock Exchange in order to facilitate trading. Trading on this market will, however, be limited to sell only transactions"

[brandy5911] 16/2/2016 18:31

Reply from HLThank you for your email.Normally we are unable to hold shares listed in Hong Kong on the Vantage Platform. However we will have to take every investment on a case by case basis and where clients are receiving shares from a takeover we will consider the options available.Currently this action has not been fully confirmed so we can make no comment at this time. Once more information is available we will be contacting all affected shareholders to inform them of their options.I hope this has been of assistance to you. If you have any further queries, please view our Help and Support centre or contact us on 0117 900 9000.Kind regards

[catscats] 16/2/2016 14:13

RP shares were 20c in 2002....there have been a few chances to trade the stock in the last 14 years but I think a lot of 'shareholder value' has been gobbled up in salaries. I know there have been some special dividends (I don't have the data), but this management has never really created a 'business' - they are just traders...maybe it will be different this time with PLE...

[trinitygooner] 16/2/2016 12:42

AJ Bell/You invest does hold and trade in HK stocks.

[lagosboy] 16/2/2016 11:58

Wow - and that was down on the year before.

[zangdook] 16/2/2016 11:17

My beef with RP is that their CEO is way too highly paid. For example, the 2013 annual report shows he received a package of over US$5.8m, and Jim Mellon took home just under US$2.9m - for a non-executive role!

[lagosboy] 16/2/2016 11:03

Why do you say RP has been a dog, am I missing something? - the Offer document states that

''Regent Pacific has generated average cash returns over the term of investment of nearly two times on material investment disposals (where Regent Pacific's investment was US$1 million (equivalent to approximately £0.7 million or HK$7.8 million) or more) over the last 6.5 years. This includes a 12.9 times cash return on the disposal of 938,978 shares in Binary Holdings Ltd in April 2015 for an aggregate consideration of US$15 million and a 2.2 times cash return on the disposal of Regent Pacific's entire investment in BC Iron Limited in 2013 for an aggregate consideration of US$88.8 million. Regent Pacific also had a marked-to-market unrealised gain of 35.7 per cent. on its position in Endeavour Mining Corporation for the six months ended 30 June 2015''

Recent results have reflected the transition of the company from mining to bio pharma

Date
Total Shareholder Returns (%)
January 2009
0.00
July 2009
166.36
January 2010
105.32
July 2010
100.88
January 2011
304.76
July 2011
252.19
January 2012
151.27
July 2012
134.43
January 2013
248.65
July 2013
146.89
January 2014
166.84
July 2014
166.84
January 2015
139.41
July 2015
184.30

[lagosboy] 16/2/2016 10:14

You are absolutely right - the additional licenses up their sleave and the completion of the Recordati licence will add real value and drive share price over next 6 months. Longer term the NDA FDA submission will be key but the mkt looks well ahead.

Amazingly, many shahrehoolders were unaware that the stability test had even begun.

[catscats] 16/2/2016 09:53

RP up 10% on £2000 worth of business....so not sure you can read too much into that. With no shorting allowed and RP shares tightly held I expect the share price will stay steady in the offer period....after that who knows. Obviously most holders of PLE own them higher up so will probably hold their RP shares rather than take a small profit. But it all depends on the news/progress of PLE's business. If there was more confidence on that,then I am sure PLE's price would be higher.

[lagosboy] 16/2/2016 09:15

Agree - shareholders behaviour on boith sides of this deal is not following normal patterns.

Distorted perhaps by AIM / HK listings, illegality of shorting in HK, imperfect mkts, irationality of shareholders, laziness of shareholders to swithch accounts, uncertainty of deal completion, BB selling down 15m shares during offer period.

Who knows!

[zangdook] 16/2/2016 09:05

Then again, regardless of the prospects, it makes simple financial sense for them to sell 575 and buy PLE at current prices, if they have the ability to do that. There must be brokers in HK who can trade in London. So I presume Regent's shareholders are either too big or too small to care.

[lagosboy] 16/2/2016 09:00

RP up 9.9% overnight - the fact that they have not been selling in droves does give me ever increasing confidence that the RP share price will hold up at a reasonable level.

In JM, they trust and the professional valuation at this early stage of commercial developments came in at 15.75 p per share, so it does look a pretty good deal for RP shareholders.

[zangdook] 16/2/2016 08:46

I know brokers who'll do it, I just need to know if I'll have to go to one of them. I'd rather keep them in HL if I can, because there will inevitably be delays transferring to another broker, but if HL aren't going to be able to trade them I need to start the transfer process ASAP, before the takeover if possible.

I'll give them until the end of the week, if they still "don't know" I'll pull the plug on them.

[trend surfer] 16/2/2016 08:38

Barclays international will trade on the HK exchange.

[zangdook] 16/2/2016 07:48

About how Hargreaves Lansdown will handle it? That's all I want to know - will they let us trade Regent Pacific, because if not I have to find someone to transfer it to.