Queen's Walk Investment Share Discussion Threads

[marben100] 11/9/2010 12:56

bisiboy - sorry to say that the poor O.O. take up makes no difference to our dilution. Those O.O. shares not taken up are guaranteed to be placed by Liberum.

Unless the motions are defeated at the EGM, as per yesterday's announcement:

"The remaining 12,023,912 New Ordinary Shares to be issued pursuant to the Capital Raising have been allocated to Placees procured by Liberum Capital."

13.3m new ordinary shares WILL be issued on 16th September, subject to approval at the EGM the day before, irrespective of O.O. take up.

Just to clear up some further possible confusion: only the ordinary shares currently in issue (not the 13.3m extra shares) will receive the cash dividend of €0.145, payable on 22nd October. ALL ordinary shares, including the 13.3m new ones, will be eligible for the preference share bonus issue of 1.25 prefs per ordinary share held. The prefs will be issued (and the ords will go "ex" that scrip) on 17th September. Hence a big drop in the share price of the ords can be expected on 17th.

The hard question to answer is how big the drop on that date will be? It is not clear what the dividend on the ords will be in future, but the prefs will pay 8p/annum each, payable in 4 quarterly instalments. It is all but certain that the ords will trade at a big discount to NAV (where NAV is net of the notional value of the prefs) but how big that discount will be remains an open question.

As always this is all AIUI, DYOR.

Cheers,

Mark

[bisiboy] 11/9/2010 11:02

pleased the open offer was poorly taken up as it means less dilution for me and a larger discount to nav at current price than would otherwise be the case.

i think these are very cheap.

[envirovision] 11/9/2010 09:34

I think some people got a little confused. If you look on the circular, the anouncement was un-scheduled, i was expecting a full anouncement on the 15th which included how many Lebrum took, how many they privatly placed, how many others took, how many were excuded (other than cheyne).

So maybe people got a little confused, whilst some may have panicked.

Infact there should still be a full announcement of results of the Open Offer 15 September after the EGM.

[marben100] 10/9/2010 23:54

Could be tax related? Some may prefer not to receive a cash divvy but prefer to have shares xd. Any such holders may have been selling over the last few days but just have a few left to get rid of before it goes xd.

[zastas] 10/9/2010 22:29

Cannot quite work out why so may shares suddenly on offer at £2 and just above. After several days of virtually no trades. Today is still before ex-Pref and before ex-div. Have some misunderstood the ex-entitlement today?
Ofcourse, you can short-sell QWIL, at least easily through CFDs with Ig markets for instance. But why today? The not-taken-up open offer shares have afterall already been placed.

[marben100] 10/9/2010 16:24

Sorry enviro - misunderstood your post, though I was merely quoting from it ;0). Hadn't spotted you were referring to a different situation.

Glad that a few of us bagged an apparent bargain today. :0)

...£1.25 (nominal) of prefs per €1.855 (effectively) spent today + new ords. Seems worthwhile, even if they DO drop to that level on Monday.

Cheers,

Mark

DYOR!

[madmix] 10/9/2010 16:15

Thanks for that enviro / marben.

Just bought a few myself!

[envirovision] 10/9/2010 16:12

thats how i read it, hence why i just bought some.

marben to to make clear i never said that.

[madmix] 10/9/2010 16:08

enviro,

I didn't take up the open offer (as I needed the funds for another opportunity).

If I buy shares in the market today, presumably I am entitled to the preference shares also.

So buying in the market today at €2.00 is a better deal than taking up the open offer, since I also get the dividend.

Is this correct?

[envirovision] 10/9/2010 16:08

Marben i dont think you understood my post, please re read it, i was not suggesting that in anyway.

Today is bargain bucket day. You get the divi so you shares would in effect cost you 1.85

You get 1.25 £1 8% PA bonus shares (worth £1.25) or 1.5 Euro and are left with an ord share which effectifly cost you 35 cents.

Had I known the price would have been so week today, i would not have taken the open offer, but piled my money in this afternoon.

Still, I had just over six thousand euro spar in my TD waterhouse account so have just bought some more.

I'm certainly going to be loaded to the gills here once its all done and dusted.

[marben100] 10/9/2010 16:03

enviro,

"holders prior to ex entitlement would get a dividend on their existing and new subscription shares"

Not correct. I checked with the company. Open offer shares are NOT entitled to the divvy, as they're only issued on 16th (the ex-divvy date is Monday). Hence, I've hoovered up a few in the market just now @ €2.00. Equivalent to buying open offer shares for €1.855. :0)

Betting they won't drop to €1.855 on Monday. ;0)

Cheers,

Mark

[envirovision] 10/9/2010 15:59

yes new shares dont, but you will get the bonus shares.

[madmix] 10/9/2010 15:58

Am I correct in thinking that if I buy in the market today, I am entitled to the dividend (as XD is 13 Sep), whereas the new shares from the open offer don't get the dividend (as they are admitted to the market on 16 Sep)?

[envirovision] 10/9/2010 15:30

I wonder how the old shares will fair ex divi on Monday. After all the shareprice is more or less at the offer price, yet Liberum have only found out today how many shares they have extra to sell which dont carry the dividend. I'm assuming they allready had "multiple over subscriptions" for their underwriting. If not, they could be left holding the rump underwater come monday. The dividend announcement was odd, it should have been written into the placing like PSPI did.

IE ex divi date on ex entitlement date, holders prior to ex entitlement would get a dividend on their existing and new subscription shares, that way those taking up the offer would get extra. Had they done this, more people would have taken up the offer.

edit just clocked why, not all holders of Ord shares qualified for the open offer. Particulary the excluded overseas territory and US persons, so would not be fair on them.

[envirovision] 10/9/2010 14:17

I think i would complain if thats so, and threaten to write to the FSA, thats simply not right insipiens.

[insipiens] 10/9/2010 14:00

enviro - tdw did for me on the exchange - almost £1=1Euro ! (gits)

[holts] 10/9/2010 12:43

Enviro , mine was selftrade who ususally have a reasonable exchange rate.

[investor_tp] 10/9/2010 11:49

HSBC didn't even inform me about the open offer or ask me if I wanted to take it up, they only told me about the Bonus Issue and Name Change.

[holts] 10/9/2010 11:34

I took up the offer and have had an exchange rate of 1.1671 applied which is way off the mark , anyone else had a different rate?

[rat attack] 10/9/2010 10:49

Very poor take up for open offer - only 23%!!

The Open Offer closed for acceptances at 11:00 a.m on 9 September 2010. The
Company is pleased to announce that it has received valid acceptances in respect of 1,298,416 New Ordinary Shares from Qualifying Open Offer Shareholders. As disclosed in the Prospectus, Cheyne ABS Opportunities Fund LP, which holds 15,773,804 Ordinary Shares representing 59.2 per cent. of the Existing Ordinary Shares in the Company, has agreed in writing not to take up its Open Offer Entitlement. Therefore the valid acceptances received represent approximately 23.9 per cent. of the New Ordinary Shares to be issued pursuant to the Capital Raising excluding the entitlement of Cheyne ABS Opportunities Fund LP. The remaining 12,023,912 New Ordinary Shares to be issued pursuant to the Capital Raising have been allocated to Placees procured by Liberum Capital.

[insipiens] 03/9/2010 19:09

nice - will accept that gladly....ord price seems to have steadied @ around 2 Euro too. Will no doubt change on the admission date....?

[rat attack] 03/9/2010 13:03

Dramatically large increase in dividend announced today, which according to my calcs is 6.9% for the quarter!! Must be feeling some pressure on the new capital structure!!

Queen's Walk Investment Limited announces today that it was resolved to declare a dividend of Euro 14.5 cents per Ordinary share, in respect of the period ending 30th June 2010, to be paid on Friday 22nd October 2010 to Ordinary shareholders on the register at the close of business on 15th September 2010.

The ex dividend date is 13th September 2010.

The amount of the dividend has been set to take into account income generated by the Company's investment portfolio in the period ending 30th June and also the income expected to be generated by the Company's investment portfolio up to the date of the Company's extraordinary general meeting on 15 September 2010 at which various proposals will be subject to the approval of shareholders as further explained in the circular issued by the Company on 17 August 2010.

Conditional on the approval of the Required Resolutions (as such term is defined in the prospectus published by the Company on 17 August 2010) at the extraordinary general meeting of the Company, the Company's dividend policy will be amended with effect from admission of the preference shares to issued by the Company as further explained in the prospectus.