Powerhouse Energy Takeover Rumours (PHE)

If the MCAP sits at £53M after the takeover (assuming the price per share stays roughly where it is now) then to substantiate that level of MCAP at a PE ratio of say 30 would require a forecast Pre-Tax Profit of about £1.77M about two years hence. Surely that's not an unreasonable expectation if the enlarged PHE-W2T company is receiving £500k per annum licence fee from Peel for each DMG unit, which could be up to number 5 in a couple of years.

elrico, Sadly you are a typical lemming and mushroom punter. Listen to deccer1, he talks a lot of sense.

elrico, Sadly you are a typical lemming and mushroom punter. Listen to deccer1, he talks a lot of sense.

He is a real laugh. PHE have not even got planning consent yet for a full sized system, built it (which will take a year) or completed a full technology certification. That is all late 2021 at the earliest and they could still encounter new problems, meaning more delays, expense or even failure. As if they wasn't bad enough, after the W2T takeover, they will inherit W2T's considerable debts and be expanding the workforce to over 30, all of whom will have to be paid and provided with work space so increasing admin costs and other expenses. Forget profit. Its just loads and loads more dilution.

AFC sold their stake in W2T back to W2T last year for just £24,000, so valueing 100% of W2T at just £83,000.The proposed 60:40 PHE:W2T share split takeover overvalues W2T by a factor of at least 50, basically amounts to giving away your company and you would still be left having to fund what would have been W2T's contribution to future projects imo.Show some willy and demand 90:10 in PHE's favour or reject it.Lemmings and mushrooms only.

Bit new to this game but always happy to take a punt on things like this. I’ve set my stall out that I’m going to keep my shares for a loooong time. If I lose, I lose, if I win, then I could be a nice big wedge.....in a few years of course. Just hope things work out for PHE, the takeover and the new site planning. Like someone said earlier, recycling single use plastic is the future, and it’s not like the world has a shortage is it??

And this.Howard White ?16/01/20 08:20Absolutely - and that I would fiercely resist any takeover from a third party as the vast potential for PHE shareholders should remain with the faithful !!

It's about 66% more not 166% but adds value by potentially doubling PHE's share of revenues, means money from any territorial outlicensing will flow more directly to PHE, and make PHE more investible and a more attractive takeover target (as they will control both technology and marketing rights, unless where outlicensed).I was wondering if they will go down the outlicensing route for deoloyment across Asia via Toyota?

Expect it to drop like a stone now. Massive share dilution proposed for the W2T takeover and they will probably need a placing afterwards to fund an enlarged payroll, other costs and W2T's debt. Lemmings and mushrooms only.

So after the dilution to takeover of HW's private company later this Quarter, I expect more dilution to pay for the extra W2T staff and directors, and probably larger offices. Obviously they will need a dilutive placing after the dilutive takeover. So after the dilutive takeover I expect the mm's to drop the price like a stone unless they do it sooner.

Obviously they will need a placing after the takeover of related party private company W2T to pay all the extra staff and directors, including scruffily dressed HW. Probably HW and a few others will want places on the Board and nice six figure salaries I imagine..

I doubt they would be able to do a placing before the takeover which itself involves issuing more shares. Let the waters settle first before raising more cash.

Zeppo I think vatnabreak means the takeover of W2T not of PHE by a n other.

vatnabrekk Re 11476 To want to take the company over you must realise its potential - which could be huge. To be able to take it out at .59p would be disappointing. Planning permission will surely firm the present price. I hope that news of any possible bid/takeover does not come before that.

Takeover already priced in I reckon.

Looks like it will drop like a stone if the dilutive takeover goes ahead.

AFC sold their 24% shareholding in W2T for just £20k a few months ago so that valued 100% of W2T at just £83k. On that basis the proposed W2T takeover terms should be 99:1 in PHE's favour, not 60:40, but I will be generous and say 95:5. You can still vote against it and the dilution, and demand better terms. Lemmings and mushrooms only.

slatry this is how I see the calculation: PHE already has 1.961 billion shares in issue (15/11/2019) so they will have to issue another 1.307 billion shares to buy Waste2Tricity on the 60:40 basis: PHE 60% = 1.961 billion shares at present (15/11/2019) W2T 40% = 1.307 billion shares to be issued to buy W2T Total 100% = 3.268 billion shares after completion So after the 60:40 takeover there will be 3.268 billion shares in issue, plus more issued on a regular basis to pay other ongoing costs. The 1.307 bn new shares expressed as a percentage of the current issued 1.961 bn shares, implies 67% more shares, not 40%.

There is no way the proposed 60:40 takeover ratio can be acceptable to PHE shareholders. PHE already has 1.961 billion shares in issue (15/11/2019) so they will have to issue another 1.307 billion shares to buy Waste2Tricity on the 60:40 basis: PHE 60% = 1.961 billion shares at present (15/11/2019) W2T 40% = 1.307 billion shares to be issued to buy W2T Total 100% = 3.268 billion shares after completion So after the 60:40 takeover there will be 3.268 billion shares in issue, plus more issued on a regular basis to pay other ongoing costs. Write and telephone PHE's Chairman Cameron Davies to demand better (less dilutive) terms for PHE. I suggest 90:10 PHE:W2T.

AFC sold their 24% stake in W2T for just £20k a few months ago so that valued 100% of W2T at just £83k. On that basis the proposed W2T takeover terms should be 99:1 in PHE's favour, not 60:40, but I will be generous and say 95:5. You can still vote against it and the dilution.Lemmings and mushrooms only.

If the takeover ever gets approval I bet the mm's will drop the price back down to 0.3p afterwards as the dilution kicks in.

vatnabrek I assume W2T would cease to exist after the takeover and the SPV model would be carried forward, with PHE receiving an enlarged ongoing license fee from each SPV's revenues.

vatnakrek, presumably PHE will not only get their 20% ongoing licensing fees but with the takeover also the other 20% W2T would have got from each DMG revenue stream, so the takeover doubles PHE's ongoing revenues from the DMG deployments?

Everyone should prepare for a major share consolidation together with a sizable cash call when this takeover is finally announced.

Looks more like a reverse takeover by Tim Yeo