Pv Crystalox Solar Share Discussion Threads

[extrader] 18/5/2018 12:35

Hi Steve73,

I'd be particularly interested in why they sought permission to increase shares by up to 66% in the context of an acquisition-related rights issue (see resolution 8).

Is this just to 'cover all bases' as part of the strategy review or a sign that they may be looking at using the prospective war-chest to buy into something new ?

ATB

[extrader] 18/5/2018 10:54

Hi all,

I've just spoken with Wethey, CFO and Company Secretary.
An RNS will be out shortly, he confirmed that all resolutions were passed with 99% in favour, about 40% of shareholders by value present.
He didn't want to say more, other than that they're concerned to maximise value for shareholders, reminding me that the CEO has about 10%, so plenty of skin in the game and interests aligned with PI's.

ATB

[steve73] 18/5/2018 09:09

I'm surprised there was no AGM RNS issued...?

[cjohn] 18/5/2018 09:07

Wafer prices down again week on week. Drops of between 0.35% and 1.7%.

every 1% drop is worth very roughly $100k to PVCS.

[zcaprd7] 17/5/2018 12:48

Any news from the agm?

[extrader] 16/5/2018 14:04

Hi outfly,

This is only ST's estimate. It's not clear what is included in his reckoning eg all the interest ? What the reduction for non-delivery of wafers might be ? What the eventual closure costs of the German facility might be ?

Still, there appears to be reasonable upside from here......and we may get some greater insight tomorrow.

Here's hoping !

ATB

[outfly] 16/5/2018 13:35

This shows that we should receive a payment of 27.5 p per share.

[gersemi] 16/5/2018 13:06

There you go - an update from ST from the IC (thanks to ST):

--


End game in sight for PV Crystalox

The end game is in sight for solar wafer maker PV Crystalox Solar (PVCS:22.5p). The company has received an initial payment of €14.5m (£12.7m) from one of its customers, a leading photovoltaic company that failed to purchase wafers in line with its obligations under a sales contract, as part of a €36.5m arbitration award made by the International Court of Arbitration of the International Chamber of Commerce (ICC). Discussions are ongoing between the two parties to agree a payment schedule for the outstanding amount.

The photovoltaic company has the right to receive the outstanding 22.9m wafers under the contract, and both parties are exploring options to eliminate the wafer deliveries for a corresponding reduction in the award. This explains why PV Crystalox only recognised a net €20.5m of the award in its 2017 annual accounts. In addition, a further €3.1m was awarded to PV Crystalox in March 2018 and will be recognised in the first half, as will interest on the outstanding balance of the larger arbitration award.

By my reckoning, PV Crystalox currently has net funds of 22.5p a share, excluding 5p a share of outstanding award payments to be made. Ultimately, a cash return to shareholders is the end game. So, having included the shares at 19p in my 2014 Bargain Shares portfolio, and last rated them a hold at 21p (‘Small-cap earnings beats’, 21 March 2018), I can see light at the end of the tunnel. Hold.

-

[extrader] 15/5/2018 15:46

Hi all
People positioning themselves prior to Thursday's AGM ?
Won't be able to attend myself, look fwd to discussing outcome when known.
ATB

[zcaprd7] 15/5/2018 15:20

Bit of a flutter this pm?

[cjohn] 15/5/2018 09:44

By the way, I just saw your kind message 2267 on the TNI board. You're right!

[cjohn] 15/5/2018 09:22

If you're going to the AGM, Extrader, I'd be grateful for a summary here....

[extrader] 14/5/2018 21:24

Maybe we'll get some hard info 're the lengthy strategic review conclusions at the AGM on Thursday.......

ATB

[extrader] 14/5/2018 21:24

Maybe we'll get some hard info 're the lengthy strategic review conclusions at the AGM on Thursday.......

ATB

[zcaprd7] 14/5/2018 12:46

Someone like this:http://logomatic.de/en/company/

[zcaprd7] 14/5/2018 12:15

I suspect there will be a small acquisition, that can be merged with the German operations, to make it viable, and save the redundancies...

[extrader] 13/5/2018 22:39

Hi all
So long as they don't p@@$ up up against the wall on a new venture..
.unless it's blockchain , in which case we're all millionaires...

ATB

[zoolook] 13/5/2018 19:28

Thanks CJohn,

Got a bit carried away and forgotten he said that.

Maximising shareholder value and doing the best thing for shareholders should be one and the same...

Still risk/reward is very attractive at the current SP

[cjohn] 13/5/2018 18:19

hi Zoolook,

Sadly, it's not as clear as you suggest.

Firstly, the Chairman said this in the recent Prelims:


"Following receipt of the funds from the arbitration award mentioned above, the Group is expected to have a substantial net cash position. In the light of this the board intends to explore options for the future of the Company in order to maximise shareholder value. These may include a cash return to shareholders, the acquisition of an existing business or a combination of these alternatives."


And secondly, they've also said they may try to restructure the German business, if a buyer isn't found.


The best course of action is a wind up. That's for sure. But you can't necessarily expect the directors to do the best thing for shareholders.

[zcaprd7] 13/5/2018 16:00

There is a little uncertainty, not sure how logical German trade unions are, but I presume more so than British ones...

[zoolook] 13/5/2018 10:45

Downside well and truly covered. Built in upside is is more likely than vast majority stocks. Not a quick buck but can’t understand why the price hasn’t jumped on the announcement as it is cash in the bank and demonstrates the customer can’t wriggle off the hook despite its best efforts. No indication that the BOD intends to do anything other than the logical thing in shareholders interests ie completing the wind down.

[cjohn] 13/5/2018 09:16

Yes, that's right.

[zcaprd7] 12/5/2018 10:03

Err, latest statement:"Discussions continue with the customer, to agree a payment schedule for the outstanding amount. Both parties are also exploring a possible agreement where the wafer deliveries could be eliminated together with a corresponding reduction in the payment."Current figure already includes extra plus interest as well, I believe...

[steve73] 11/5/2018 10:29

Chairman's statement in the '17 AR indicates that the award would be increased by Eu3.1MM. He also clarified that they can only claim the additional wafers once the award has been paid in full.... this suggests to me that they cannot simply get a reduction in what they need to pay.
UK operations are now totally shut with just 7 employees (at end of '17) and probably even less by now, with the last UK lease terminating 31st Mar. The last few are probably working out of someone's garden shed by now. No polysilicon inventory remains from what I can see.
So just the German facility left to wrap-up or sell-off now..(91 employees from what I can see)