Raven Prop P Discussion Threads

[igbertsponk] 26/1/2021 12:38

Yes, we used to rely on Invesco to look after the Pref interests. Now they've gone the baton passed to Quilter.

[gary1966] 26/1/2021 12:35

MRF,

Company cannot force a redemption, 75% of shareholders have to vote for it and with Quilter now owning well over 30% I would say that there is no chance of that happening.

[my retirement fund] 26/1/2021 12:32

So know we know why the shareprice is in the toilet. It seems the price for this shady deal is to give tens of millions of pounds worth of preference shares to a few special ones at 90p who can then spend the next 5 years or so selling them back to us at a 30% markup and collecting the dividend whilst they do it, almost guaranteeing the shareprice will be in the toilet for christ knows how long. So what's next after the convetable fiasco? A complete buy out of the company privately and a forced below par redemption ?

[igbertsponk] 26/1/2021 12:28

Reading again the 2nd announcement.
I guess that the yield on the Prefs acquired by the JV will more than cover the financing costs to VTB (Russian bank). Assume that the plan would be to use the Pref divis to gradually pay off that loan and then probably collapse the JV with both the company and the Directors taking what is left.
So a long term deal I expect.

[my retirement fund] 26/1/2021 12:24

Couldn't agree more. It's shocking they would treat private shareholders in this way! I'm wondering even if it's legal? Surely someone with a legal background in equity and finance can advise and Surely if it doesn't break any laws of conduct then its a matter for our MPs and Parliament.

[gary1966] 26/1/2021 12:19

I would like to think the JV won't be selling anytime soon. I would also like to think that as Quilter are adding considerably to an already large position that they also are happy to hold.

I am just peed off that loyal long term pref holders weren't given the chance to buy. I hold 100K and would have been happy to sell a few things to add at least another 100K at 90.8p given the chance.

[yieldsearch] 26/1/2021 12:04

this is bad news full stop.

How can this benefit small shareholders? we are not beeing offered anything. I have a market at 106/109 and i know someone willing to sell at 90.8, and i am not allowed to buy at that price.

Price will only appreciate if they are finding a core investor base: invesco most likely tried that without any success. We had the RAVC episode already.

[igbertsponk] 26/1/2021 11:40

Glad I added on the dip. No doubt it will crash down now I've posted !

[kenny] 26/1/2021 11:07

Gary,

No, I did not get offered any in the placing - my family are all individual investors.

I guess this is good and bad news - good news that the overhang is cleared but, bad news that it will probably take months for the shares that go to placees, to work through the market to firmer holders.

[gary1966] 26/1/2021 10:47

Kenny,

I believe you are a reasonable sized holder of the prefs, did you get offered any in the placing?

[spectoacc] 26/1/2021 10:43

@zangdook - agreed. I guess they're increasing the co's debt & gearing elsewhere in order to buy, so can they not borrow more cheaply to retire more RAVP? Probably not, in which case, it doesn't look the best deal to me. But if it is a good deal, then yes - buy all the debt at 13% annual cost, not more shares (let me guess - buying in shares helps the directors).

Great for the directors who get to partake in the JV.

[gary1966] 26/1/2021 10:40

Yes saw the second RNS after posting, but thank you all for pointing out. Why shouldn’t I be surprised that not all shareholders are equal. Only upside is price is unlikely to slump to low 90’s now as there is no expectation of being able to get any in the placing.

[cc2014] 26/1/2021 10:40

I am now the proud owner of a considerable number of RAVP having picked up a decent sized lump this morning at between 101 and 102p.

With Invesco out the way I expect the share price to stabilise within 3 months at a price higher than here.

Rouble exchange rate is still pants so expect that to cap any significant upside.

[zangdook] 26/1/2021 10:39

"removed the significant market overhang from both of our listed securities"

Except by arranging their sale cheap they've very likely created another overhang. I'll wait to see the detail of what this joint venture will do once it's got its shares. I wonder if, in calculating an "equal value" of cash for the company to inject they used the 21.6p valuation.

Surely they could have bought back some more of the prefs to save paying out over 13% indefinitely (at the placing price).

[stemis] 26/1/2021 10:32

Managed to pick up 5k in the market but no more around it seems..

[Edit: Seems a few more now at higher prices]

[stemis] 26/1/2021 10:32

See announcement

MEMBERS OF THE GENERAL PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO PARTICIPATE IN THE PLACING AND IN SO FAR AS IT RELATES TO INVESTORS PARTICIPATING IN THE PLACING IT IS ONLY ADDRESSED TO AND DIRECTED AT INVITED PLACEES WHO...blah, blah, blah

THE INFORMATION REGARDING THE PLACING SET OUT IN THIS ANNOUNCEMENT MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS OR ANY RELEVANT PERSON WHO HAS NOT BEEN INVITED BY THE COMPANY TO PARTICIPATE IN THE PLACING. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS WHO HAVE BEEN INVITED BY THE COMPANY TO PARTICIPATE IN THE PLACING AND WILL BE ENGAGED IN ONLY WITH SUCH RELEVANT PERSONS.

[deadly] 26/1/2021 10:31

Got 5k at 101. Seems a bargain but let's see.

[cc2014] 26/1/2021 10:29

Details of placing out in additional RNS a few minutes ago.

[zangdook] 26/1/2021 10:29

Shares "conditionally placed with investors" doesn't sound to me like something the likes of us will get a taste of, so I made do with 101.98.

[stemis] 26/1/2021 10:28

You can't take part in the placing

[spectoacc] 26/1/2021 10:28

@Gary1966 - nope. Is dictated by whether you're in the club or not. Placing will be mostly done already, quids in for the insts.

[gary1966] 26/1/2021 10:24

Maybe the amount you can buy at 90.8p is dictated by the amount you already own hence the need to increase current holding?

[my retirement fund] 26/1/2021 10:20

Why add at 102 when you can add in the placing at 92p ? ...or are people expecting they won't be able to partake.