Premier Eng. Share Discussion Threads

[praipus] 08/9/2014 16:35

So it appears to be business as usual and roll or cash in. Keeping the cpital structure simple, Prices and accruel rates to be agreed closer to the time.

The z's representing the only debt mean we can adjust ord/z ratio to suit our appetite for gearing.

[praipus] 04/9/2014 13:24

Brokers! They win if you buy or sell......

[praipus] 04/9/2014 13:24

Its a moment like this you want some exposure to foreign currency :)

[philo124] 04/9/2014 12:42

Thanks. Still have a worthwhile holding. I was pleased that I found this investment rather than my broker--lol.

[praipus] 04/9/2014 12:18

I like the geographical spread trying to play games with currency has cost me dearly in the past so I'm happy to take my chances on a mixed basket.

Not sure there is too much to worry about on the corporate action side of things. From the voting I get the impression the institutions are happy and looking at the NAV/SP of the ords and z's the secondary market would like more of the same if they could.

Been reading about options conversion/reversal and wondered if you had been doing something deeply technical by only selling 50% :)

Well done on the profitable trade.

[philo124] 04/9/2014 11:47

Looked at geographical spread of PEW holdings. Unsure of corporate action. Wanted to raise cash in SIPP, so trimmed 3 other stocks as well.

[praipus] 04/9/2014 11:26

Any particular reason? Why only half?

[philo124] 04/9/2014 11:09

Sold 50%; good profit.

[praipus] 03/9/2014 09:24

I would like to convert my ords and ZDP's to a mixture or package unit consisting of an:

Ordinary share,
Warrant,
Capital share,
CUL,commulative unsecured loan
ZDP share and
an income share

A unit shareholders coulc selectively sell the classes of share which might not suit their risk appetite or circumstance.

This would also create arbitrage opportunities for adventurous PI's if/when demand/ liquidity ebbs and flows from one class to another.

Suspect maintaining six classes of share may be expensive and therefore impractical. So perhaps switching every one to ordinaries or enfranchising the ZDP with some incentive is the way to go.

[mozy123] 02/9/2014 16:29

correct Aleman - some combination of all options maybe.

Good to see the co-mananger buying some stock!

[aleman] 02/9/2014 15:13

You forgot that they could sell some assets although that would mean the dividend yield would ease slightly and the expense ratio would rise, depending on the mix of assets sold. I actually favour this - but only wish to see a modest reduction in gearing. It's the top of a bull market. The gearing will hit NAV hard on the way down, although it would matter less if you are a long term holder here for the long term yield and not too worried about short- and medium-term variations in NAV.

[mozy123] 02/9/2014 14:17

They could - ZDP's are essentially debt, but didnt see any mention when i skimmed the prospectus last night!

[philo124] 02/9/2014 14:00

Couldn't they use some debt?

[mozy123] 02/9/2014 11:06

So let me get this correct - so to pay ZDP shareholders they will either need to issue more ords (if the ZDP's want cash)and or sell more ZDP's to other investors or roll them over into the new ZDP shares (if they dont want cash)

In the event the ZDP's want cash and they cant issue the same amount of new ZDP's to new or existing ZDP holders there could be dilution to the ords?

[praipus] 29/8/2014 17:13

Browsing through the last RNS Investec have 20 x as many PEWZ as PEW
and Premier Fund Managers Ltd have 1/3 PEWZ and 2/3 PEW

[aleman] 27/8/2014 10:48

Ex-dividend today by 2.65p, today.

[oniabsta] 02/8/2014 18:08

you don't :-)

[aleman] 02/8/2014 14:01

"the Board believes that the Proposals, if approved, will allow the Board to consider issuing a follow on zero dividend preference share"

Yes, this line does seem to indicate it just sorts out the legal framework rather than the numbers which will be sorted later. Thanks.

So when do I get to vote on the accrual rate being offered?

[oniabsta] 02/8/2014 13:04

The questions you are putting forward it seems to me to have no answers at this time "We need to know what proportion will cash in at 221.78p"

won't know that until they cash in.

The debt for all zdp's is "covered" so the only concern is the new accrual rate
on the rollovers

from the excerpt of circular below the key phrases to me are:-

"the Board believes that the Proposals, if approved, will allow the Board to consider issuing a follow on zero dividend preference share"

Will allow the board to consider - the important bit

"rollover their investment in a tax efficient manner into a similar investment for which the Board believes there will be sufficient demand"

In my view they have only thought about the mechanics of refinancing by ZDP's at this stage and not the accrual rate(my thoughts for what they are worth is that it will be the same)


Whilst providing for the ZDP Shareholders to receive their final capital entitlement on 31 December
2015, the Board believes that the Proposals, if approved, will allow the Board to consider issuing a
follow on zero dividend preference share at that time to allow ZDP Shareholders who wish to do so
the opportunity to rollover their investment in a tax efficient manner into a similar investment for which
the Board believes there will be sufficient demand. It is the Board's current intention, if the Proposals
are approved, to consider the various options that may be available for refinancing the current ZDP
issue nearer to the ZDP Redemption Date. Following the Shareholder consultation, it is the Board's
view that there would be interest from a significant number of ZDP Shareholders in rolling over their
investment into a new zero dividend preference share following the ZDP Repayment Date. It is intended
that in such circumstances, ZDP Shareholders seeking to rollover their investment would be allocated
new zero dividend preference shares in preference to any subscriptions from new investors.

[aleman] 02/8/2014 11:31

But you can't value the ordinary shares until you can work out what the new shares will get after winding up date. We need to know what proportion will cash in at 221.78p so we then know how much debt there is left and what rate of accrual they will get. I can't find the accrual rate to the new shares that don't take the cash. How do they decide whether to cash in or not if they don't know the new accrual rate. I think this just paves the way for another announcement later on accurals but I can't find anywhere it says this. I'm just asking if others agree that this vital information is not in the circular.

[oniabsta] 02/8/2014 11:19

The company would have had to be wound up to pay the ZDP's on the due date. This is simply a way around that allowing the company to continue and still pay the ZDP's.