Raven Prop P Discussion Threads

[rahosi] 12/5/2022 16:08

What will happen to preference shares held in an ISA? Can they remain so or do they have to be transferred out? If they can't be transferred out but can't remain in the ISA, what then?

Do I detect a note of hope in today's RNS?

[gfrae] 12/5/2022 09:22

Though there is a point worth considering in the garbled version, why don't Raven retain their MOEX listing for the time being, it may be better than no quote, and perhaps would avoid some or all of the problems of sanctions and counter sanctions ?

[stemis] 12/5/2022 08:31

It's a garbled version of the demerging of Evraz's coal interests. Evraz, which is currently suspended on the London SE had planned to demerge it's coal interests by an in specie issue of shares in Raspadskaya (RASP) to Evraz shareholders. RASP is quoted on the Russian IMOEX and, recognising that some EVR shareholders wouldn't be able to hold shares in RASP, EVR proposed to set up a share sale facility. However the demerger was cancelled in April this year and EVR is now sanctioned.

[tradertrev] 11/5/2022 19:20

Why would shareholders be "obliged to sell" "at a nominal price" when the war ends?

[keith95] 11/5/2022 15:13

De-list from LSE re-list Moex .... so existing shareholders are obliged to sell at a nominal price on the Moex to be agreed when the war ends ....

.. is no different to the re-listing of Evraz coal interests on Moex where holders were obliged to sell untradeable assets.


So I don't see any need for this holding company nonsense.

[dandigirl] 11/5/2022 14:44

Igbert: 75% is needed. Pref shareholders are:

hxxps://www.theravenpropertygroup.com/media/1594/20220331-top-shareholders-ravp.pdf

Must be some doubt surely?

That said, we will probably abstain.

[igbertsponk] 11/5/2022 12:17

Matters little how you vote as the main institutions and the Board will be voting in favour.

[stemis] 11/5/2022 12:06

Depends whether you trust management to be doing the best they can to preserve whatever value they can in the preference shares, or believe management are a bunch of rogues who are setting things up to run off with whatever value is left.

[kgallagher2] 11/5/2022 10:53

Received an invitation to vote on delisting of shares today. What is everyones reccomendation?

[stemis] 08/5/2022 21:41

For RAVP to pay preference dividends in the future, it wil need to be paid the interest on it's loans, and/or the preference dividends it has, with RRHCL. For RRHCL to pay these it's going to need to receive moneys from some or all of the SPVs (i.e the Russian companies RRHCL owns, which hold the Russian properties). Not sure how that money is charged; management charges or dividends. To do that two things are necessary.

1. An SPV needs to receive any rents on it's properties, be able to service any bank loans it has and meet the covenants on the loans
2. The SPV has to be able, subject to sanctions, to transfer the money to RRHCL.

The only reason I can see that RAV is putting the put option in place is because it is concerned about 2.

[crm114] 08/5/2022 18:42

Thanks again Stemis

[stemis] 08/5/2022 18:28

As RAVP holders are we now subordinate to RRHCL Preference share holders with respect to the payment order ?

No, RAVP are preference shares holders in RAV. It is RAV that holds the preference shares in RRHCL.

[1knocker] 08/5/2022 18:18

I can't really be bothered with any of this. There is nothing I can do about, not even sell. I have written off my holding of prefs in my mind, and shall regard anything I get as a bonus,

I am pretty browned off with the sanctions. So far as I can see, they have resulted in the transfer of a huge quantity of valuable assets -oil, gold, property, you name it - from western to Russian hands. Putin must find the pain of that excruciating.

At the same time, the price of oil and gas and other commodities Russia produces has be pushed up, so that any reduction in Russian sales is compensated for by the higher price. Sanctions are always evaded, so while the route from seller to ultimate purchaser will have grown more devious and opaque, the sled continue.


The real damage is yet to come, namely further hikes in food prices. That will be unaffordable to much of the third world. The starvation large numbers of people this year and next is now certain. And they ain't going to be Russians.

[crm114] 08/5/2022 17:36

Hi Guys

As RAVP holders are we now subordinate to RRHCL Preference share holders with respect to the payment order ?

Thanks

[zangdook] 08/5/2022 14:01

Good point, and definitely something to ask about. I did notice they seemed to be being rather quiet about the JV.

[flyfisher] 08/5/2022 12:59

The most immediate problem is the j/v and it's debt servicing.

The vtb loan to the j/v was due to be serviced by the dividend income stream on the ord's and prefs. Without this income the j/v cannot service its debt.

With the directors having deposited all their holdings into the j/v, they face a personal wipeout. So the directors will do anything to counteract this.

The cynic in me suggests that the delisting has much to do with the j/v debt being serviced by rav directly, whilst not on public display.

[crm114] 08/5/2022 09:16

thank you SteMİS

[homeboy] 08/5/2022 09:04

"Kenny28 Feb '22 - 02:31 - 1538 of 1967
Let's hope Monday's talks lead to at least a ceasefire."

massive lol to that, putin sent agents to the uk on more than one occasion to kill kremlin critics and in the process poisoned and killed uk citizens, you think that this man is reasonable and hope that you'll receive a 12p a year divi

troops building up on the border, if it walks like a duck etc, sell.

[stemis] 08/5/2022 08:40

No change to RAVP holdings

[crm114] 07/5/2022 19:01

Can any one clarify what exactly is the bottom line for RAVP holders ?Are we going to be offered new preference shares with a 10% coupon on a 1 to 1 basis or a 100(ravp’s ) to 1 RRHCL pref or what? Thanks

[stemis] 07/5/2022 18:51

Some interesting points in the circular

Following the Preference Share De-Listing, the Company intends to put in place a secondary trading facility to allow Shareholders to trade their Preference Shares.

Subject to there being favourable business conditions (including the significant easing of current sanctions and Counter-Sanctions), the Board would consider a relisting of the Ordinary Shares and Preference Shares on suitable exchanges

It is the intention of the Board to issue the audited financial statements of the Group for the year ended 31 December 2021 shortly following the Ordinary Share De-listing Effective Time.

The Company’s main obligation following Put Option Completion will remain the servicing of the Preference Shares.

The net asset value of RAV post exercise of the option, assuming face value of the loans and preference shares of RRHCL is £801m. That compares to 217m preference shares of RAV in issue. Obviously, it goes without saying, the face value of the loans and preference shares may not be realisable.

In this respect, the net asset value of RRHCL, before amounts owed/preference shares to RAV was ~£704m. Obviously the valuation of the properties is now uncertain. It would take a 33% reduction in property value across the board to reduce the NAV of RRHCL to 217m (i.e the nominal value of prefs in RAV). Two thirds of the debt in RRHCL is rouble denominated.

It's clear that exercising the put option is a last resort for the board and they still hope not to have to use it (otherwise they'd just undertake a straight sale of RRHCL). You do get the impression from the circular that they don't think all is lost but, of course, everyone can take their own view of that.

[stemis] 07/5/2022 18:24

I was responding to your questions about the rental; where it has been paid? currency? where it is now?

[dandigirl] 07/5/2022 14:14

Thank you, but it is the info that is not available that I am sure we all would like know more about.

It seems to business as usual to the end of March with virtually all rents paid.
The company is predominantly conducting business in Roubles - income and debt.
Both debts and cash are mostly with Russian banks.
Possible to service Rouble debt from Rouble income.
Then there is the dividends on the Prefs and interest on any hard currency debts. These can’t be paid because of sanctions. However, Rouble exchange rate holding up, for now.
The situation will deteriorate over time as leases expire.
The longer the war, the greater the financial damage.

Am I right, so far?

Can’t see the benefits of any of the current proposals under consideration. What am I missing, please?