Rentokil Initial Share Discussion Threads

[hedgehog 100] 09/6/2022 13:39

CRES was suspended for a RTO this morning, at 3p, with an implied RTO price of 4.625p.

And like NZI's, it looks like a good one: a potentially large and high-grade gold project, with significant exploration work already conducted:-

09/06/2022 07:40 UK Regulatory (RNS & others) Citius Resources PLC Statement re. Suspension LSE:CRES Citius Resources Plc

"Proposed Transaction and Suspension of Listing

Citius Resources plc (the "Company" or "Citius"), an investment company listed on the London Stock Exchange, is pleased to announce that it has entered into a binding Heads of Terms with regard to the possible acquisition of 100% of the share capital of AUC Mining (U) Limited ("AUC') to be satisfied by the issue of New Ordinary Shares of the Company ('the Proposed Transaction').

AUC holds the Kamalenge Gold Project in the Mubende Gold District, Uganda. The Project has the potential to be a large and high-grade gold project based on preliminary due diligence of the exploration work completed by the Company and its consultants. AUC have completed extensive work and expenditures on the Project over recent years yielding substantial drilling and exploration data for the Company to advance.

Citius has agreed, subject to further due diligence, to acquire the entire share capital of AUC for total consideration of GBP2,000,000 (two million pounds), to be satisfied in full by the issue of 43,243,333,242 new shares of the Company at an implied price of GBP0.04625 per share ("Acquisition"). ..."

[hedgehog 100] 07/6/2022 16:54

ARA has an aura of a future multibagger about it.

Aura Renewable Acquisitions (ARA) 9.75p Market cap. £1.024M.





08/04/2022 08:00 UK Regulatory (RNS & others) Aura Renewable Acquisitions PLC Initial admission - Offcl Lst LSE:ARA Aura Renewable Acquisitions Plc

"Admission to listing on the Official List and to trading on the London Stock Exchange

Aura (LSE: ARA) is pleased to announce that its entire issued ordinary share capital of 10,500,000 ordinary shares of GBP0.01 each ("Ordinary Shares") has today been admitted to listing on the standard segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of London Stock Exchange plc under the TIDM "ARA" ("Admission").

The Company will pursue opportunities to acquire businesses in the renewable energy sector. The Company intends to consider opportunities within the renewable energy sector focusing on businesses operating in the global renewable energy sector supply chain, particularly participants in the wind, solar, biomass, hydropower and green hydrogen supply chain ranging from raw materials resourcing to power generation, energy storage and recycling.

Prior to Admission, the Company had in issue 500,000 Ordinary Shares and at Admission issued a further 10,000,000 new Ordinary Shares at an issue price of 10 pence per Ordinary Share, by way of a placing of 9,000,000 Ordinary Shares and subscription of 1,000,000 Ordinary Shares, raising gross proceeds of GBP1,000,000. ..."

[hedgehog 100] 25/5/2022 19:15

NZI was suspended for a RTO last week.

And it looks like a good one: a significant, profitable business in an exciting, buoyant space:-

19/05/2022 08:11 UK Regulatory (RNS & others) Net Zero Infrastructure Plc Proposed Acquisition and Suspension of Listing LSE:NZI Net Zero Infrastructure Plc
"NZI, a special purpose acquisition company formed with the intention to acquire
renewable or clean energy technology companies and to finance, develop and
promote those environmentally sound projects internationally, is pleased to
confirm that it has signed a non-binding letter of intent ("LOI") to acquire
the entire issued share capital of Taylor Construction Plant Limited and Solar
Highways Limited ("TCP" or "the Target"). TCP is a UK based infrastructure
services business, for a combination of cash consideration and new shares in
the Company (the "Proposed Transaction"). ..."



Anyone who was dumping NZI at barely 2p per share recently must be kicking themselves, as if the RTO goes ahead - which it's odds on it will - then a share price of 4p+ looks pretty much nailed on.

But challenging stock market conditions often throw up bargains like this: sometimes due to distressed sellers; but sometimes just due to people dumping at the bottom of a trough out of fear.

And shells in particular often have a fairly typical share price pattern: an initial spike, often fueled by punters who don't appreciate the timescales and dilution of RTOs, followed by a lengthy, steady decline as boredom, impatience, and reality sets in.
Which can then be followed by a RTO at a higher share price - sometimes much higher.

Experienced investors can use this pattern to their advantage, waiting patiently for the optimum point to buy in.

The more things change, the more they stay the same.

Which is why TMOR looks well worth a punt at/near its one penny 4th. March IPO price.

More Acquisitions (TMOR) 0.975p Market cap. £1.22M.

[hedgehog 100] 10/5/2022 14:51

Poor stock market conditions tend to make it harder to IPO, increasing the attractions of the RTO route, and increasing the bargaining power of shells like NZI.

And meanwhile, the valuations of RTO targets for shells tend to be depressed.

So ironically, the s.p.s of shells like NZI can become depressed at the same time as they are in effect becoming more valuable: more capable of cutting a cracking RTO deal on great terms - i.e. a better shell valuation and lower target valuation, and great quality targets.

NZI should be making great progress towards a potential RTO, and should be updating us very soon.

[xxxxxy] 18/2/2022 10:13

Interested at 350

[hedgehog 100] 15/1/2022 11:48

Have a gander at this Uganda graphite play, which could be 'simply the BRESt'!

Blencowe Resources (BRES) 3.95p Market cap. £6.4M.




"Blencowe Resources (BRES.L)* 15th December 2021

Following the recent publication of Blencowe Resources’ Preliminary Economic
Assessment (PEA) on its Orom-Cross graphite project in Uganda and GM approval by
shareholders last week for a £2m over-subscribed funding at 5.0p, in this research note
we analyse the PEA’s conclusions to determine a risked based valuation and look ahead
to key news events anticipated. ...

We have used the NPV8 of $317m from the Orom-Cross PEA to determine a risked
based valuation by deducting 40% for development/resource risk, 60% for finance
risk and 25% for country risk to arrive at an estimated $57.1m (£43m) value. This
equates to a price per share for Blencowe of 27p and FEQ’s share price target. ...

A price target of 27p represents a more than 4 times uplift from the current share
price of 4.45p. The market valuation still seems anchored in the past prior to the
Company revealing a JORC resource statement and outlining its very strong economic
case for a graphite mine in the PEA announcement at the end of September.
We believe a significant market re-rating awaits Blencowe Resources, as investors
begin to appreciate the size and scale of the low-cost project being developed and its
importance in feeding the EV market with essential battery grade graphite. For these
reasons and those outlined above, we recommend the shares as a ‘Buy’ and suggest
investors position themselves in the stock. ..."

[xxxxxy] 30/12/2021 17:54

Health security

[hedgehog 100] 29/12/2021 19:08

An Aquis-only-traded shell with a tiny market cap.: from this level, there could TECHnically be a lot of upside, and it looks like a good speculative punt.

TechFinancials (TECH) 0.375p Market cap. £321K.





28.09.21 | 15:00:00 TechFinancials Inc. - Interim Report to 30 June 2021
"Cash position at the period end of US$1.33m (31 December 2020: US$1.42m)"

At current exchange rate, US$1.33M. is £.98M.

And TECH's annualised cashburn is £133K. p.a.


04/10/2021 13:53 UK Regulatory (RNS & others) TechFinancials Inc. Sale of Subsidiary LSE:TECH Techfinancials Inc

"TechFinancials (AQSE Growth Market: TECH) is pleased to announce it has entered into a Share Purchase Agreement ("Agreement") to sell its 99.84% owned subsidiary, Cedex Holdings Limited ("Cedex"), to Lem Management Limited ("Buyer").

According to the terms of the Agreement, the Company will be entitled to future consideration upon the Buyer succeeding to raise US$20 million in a single or series of related transactions, for the future operation of Cedex, or selling Cedex for a minimum of US$2 million. In certain circumstances of a sale of Cedex, or the assets of Cedex, by the Buyer, the Company will be entitled to receive 50% of that consideration above US$ 2 million. Between US$5 million and US$50 million, the Company will be entitled to receive US$1.6 million out of the first US$5 million and 4% out of the remainder, but no more than US$2 million. US$50 million and above, the Company will be entitled to receive 4% of the proceeds.

There is no other consideration payable to the Company.

Asaf Lahav, TechFinancials Executive Director stated: "I am glad that we have managed to sell Cedex, something the Company tried to do in the past 18 months. This sale is part of our strategy to save costs and try to maximise shareholders value. We will continue looking for investment opportunities for the benefit of our shareholders".

The directors of the Company accept responsibility for the contents of this announcement."

[smcni1968] 21/12/2021 17:53

I don't know what you would call the current RTO chart formation?

[smcni1968] 14/12/2021 22:45

Started up 6% finished down 12?

[roguetraderuk] 14/12/2021 20:26

rare for the acquirer to be higher so no doubt m&a arb specialists jumped on that one but the lawyers are already getting started on this one
TMX Merger Investigation: Halper Sadeh LLP Announces Investigation Into Whether the Sale of Terminix Global Holdings, Inc. Is Fair to Shareholders; Investors Are Encouraged to Contact the Firm
taking over a us company is always a mess. they want the earth but when they do the taking over they want it for free.
i dont own these any more and was hoping for a pullback but will be taking a look at the break terms closely.

[smcni1968] 14/12/2021 11:05

1040 GMT - Rentokil Initial shares fall 3% after the pest-control and washroom-service group said it plans to buy Terminix Global Holdings Inc. in a deal valuing the U.S. company at $6.7 billion. Rentokil is paying a fairly big premium, though a significant part of that is accounted for by its own shares and the deal could boost the U.K. company's earnings, AJ Bell says. "The use of the word 'transformational' to describe the deal by Rentokil boss Andy Ransom may also be giving some investors pause for thought," AJ Bell's Investment Director Russ Mould says. "It's not hard to see the strategic rationale behind the move, but so-called transformational deals often transform the purchaser's prospects for worse rather than better."([e-mail])

[typo56] 14/12/2021 10:33

If my sums are right, dilution means existing shareholders will only be getting 74% of future earnings. That means a hike of 35% in earnings just to maintain the existing EPS. If diluted EPS is to rise by "mid-teens percent" in the first year I think that requires this deal to generate a 55% increase in earnings.

With an historic profit of $41m (£31m) that would be that kind of magnitude, based on a current pretax forecast for RTO of £78m for y/e April 2023.

RTO are not only buying with shares though, there's also the cash element.

[fenners66] 14/12/2021 09:29

I have only read the RNS not Terminix accounts so far , so only have the note buried at the end (suspicious) of their profitability to go on.
So cannot see if that pathetic $41m profit is an outlier or what cash it generates
but it seems the market is now questioning the deal more than at the open.

All I can say to that , is keep up guys !

[typo56] 14/12/2021 09:11

Note this:-

"Transaction is expected to deliver mid-teens percent accretion to Rentokil Initial's earnings per share in the first full year post completion"

Is it right to assume they mean diluted earnings per share? Obviously makes a difference when you dilute 1859m shares with a further 643m. I think it must mean diluted EPS. If so, wouldn't that justify a mid-teens percent hike in share price? Perhaps that's why they were up 6% shortly after open?

Wait for the broker notes. Are they really going to say this is a duff deal, with "mid-teens percent accretion to Rentokil Initial's earnings per share in the first full year post completion"?

[fenners66] 14/12/2021 07:18

Just WHY ?

[fenners66] 14/12/2021 07:17

" During 2020, Terminix generated a total revenue of US$1.96bn, adjusted EBITDA of US$345m and profit from continuing operations before income taxes of US$41m. As of September 30, 2021, Terminix had gross assets of US$4.45bn."



Oh dear.
$6.9bn for profit of $41m
Even for $191m including assumed combination savings.... ?

All well and good saying it has $4.45bn in assets , those assets are clearly Not performing....

With a break clause costing RTO $150m we cannot even hope this does not happen....

[smcni1968] 29/7/2021 21:25

More to go? New hygiene growth strategy to be formally rolled out in September