Safeland Share Discussion Threads

[topvest] 03/2/2005 08:57

Well, no reduction in the price today!

[topvest] 02/2/2005 08:21

Jeff - oh yes, you are right. Last day to get those free shares today, not yesterday! Record date is the close of play on the 2nd of February.

[jeff h] 02/2/2005 08:17

I thought the free shares offer ended today

[topvest] 02/2/2005 08:13

8 ball - agreed. Valuation is a bit tricky for now. Looks like the SAF price has held up though! Excellent.

[shirishg] 02/2/2005 03:34

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[8 ball] 02/2/2005 00:14

One downside on this..

How am I going to include all these companies in my Investment clubs valuation.

[topvest] 01/2/2005 20:15

I think that there is a reasonable chance that the founder shares of 0.1p in each demerged subsidiary, could be worth 1p (based on an AIM placing to raise £0.5m or so) and more if they trade at a premium on listing. This is based on similar shell companies. Could be a nice windfall to SAF shareholders, particularly if we get the opportunity to invest at the AIM placings. I am genuinely excited by what LL has in mind for these shells. 2005 could be interesting!

[8 ball] 01/2/2005 18:26

Looks like Peter O'Reilly wanted a few more before the demerger.
Not many spare shares washing around.

[hybrasil] 01/2/2005 08:45

roll up, roll up last day for the demerger shares

[topvest] 31/1/2005 21:27

May drop a bit once we hit the demerger record date of 2 Feb. Looking forward to the first shell coming to AIM.

[8 ball] 28/1/2005 21:05

topvest.

Thanks for that article, hope it moves MKP to a deal.

[topvest] 26/1/2005 22:32

Presumably Safeland are looking to move before the door closes....

FT article - good news for current shells?

Cash shells face tighter Aim rules
By David Blackwell
Published: January 26 2005 02:00 | Last updated: January 26 2005 02:00

Aim is set to tighten its rules on cash shells, which have become an increasingly popular route to market.


The London Stock Exchange will next week publish for consultation proposals intended to keep the more speculative shells from joining the junior market. If the plans win the approval of the nomads (nominated advisers) and other Aim participants, they could take effect from March. They will apply to cash shells that have already joined the market but which have not yet done a deal.

The main plank of the rule change is a proposal to give cash shells just 12 months to do a deal. If no deal were to be completed in that period, the shares would be suspended - although the shells would be allowed a further six months to find a deal before being delisted.

The rule changes will also suggest that cash shells must raise a minimum of £3m through the flotation, and must also submit a much more detailed business plan than has hitherto been required.

"Cash shells have a valid role on Aim," the LSE said yesterday. "But the success of Aim is dependent on maintaining its reputation."

There are about 30 cash shells among the 1,000-plus companies listed on Aim. They can offer much promise, but they require health warnings. The most commonly cited case is Knutsford, a vehicle for Archie Norman, Julian Richer, Nigel Wray and Nicholas Leslau, who were planning to bid for a large retailer six years ago.

Excited investors quickly drove the stock from 1p to 270p - but no such deal materialised. Instead it eventually bought an investor relations firm and now trades under the name WILink.com.

Interest in cash shells has picked up again following the success of David Page, the former chief executive of PizzaExpress, who started Clapham House Group as a cash shell in order to build another restaurant chain.

He was quickly followed by Urban Dining, which raised an initial £2.75m through a placing with six institutions including Henderson Global, Framlington, Isis and Unicorn. All six took part in the secondary fund raising five months later, when Urban acquired Tootsies, a chain of 23 burger bars.

In September, Augean floated as a cash shell, with institutional backing for a plan to take advantage of consolidation moves in the hazardous waste and water supply industries. It initially raised just £2m at 125p, quickly returning to market two months later to raise a further £100m at 180p for the acquisition of two hazardous waste companies.

The company, which has yet to report any results, now has a market capitalisation of £165m.

[hybrasil] 25/1/2005 09:45

It is interesting to see how well the price has held up despite the huge jump - very few sellers.

[hybrasil] 24/1/2005 15:33

lot of volume now that the price has moved

[topvest] 21/1/2005 19:54

Sure has! We will all receive a stack of share certificates around 16 February.

[8 ball] 21/1/2005 19:02

Lets hope it's the magnificent seven......

This as turned into an interesting investment.

[topvest] 20/1/2005 21:15

Another good day for SAF. I guess we will see the price reduce come 2 Feb, but still c20p below NAV.

[hybrasil] 20/1/2005 21:06

something either tecc-is or the seven children have done a lot for the price here and I reckon now it has a way to go. very small free float now if you you look at the major holders

[topvest] 20/1/2005 14:38

hybrasil - I fully agree - it is a first! A very exciting prospect.

[hybrasil] 20/1/2005 08:03

I also read the documentation.
I think their logic for all of this is explained when you see the document referring to the fact that the market values Safeland on its NAV but it valued Safestore Hercules and Bizspace as trading entities.
Well I made money out of Safestore and Bizspace so I am looking forward vey much to what transpires.
Its a first . I have never seen anyone say. Look we are going to float 7 vehicles and have some fun and see what happens.
I dont see much downside in the idea.Also from Safelands point of view it will have 10% of all of these. All it takes is for one or two of them to work and it will do a lot for safeland

[topvest] 19/1/2005 20:57

Read the circular. Only additional point raised is that they will not list on AIM unitil they have got Inland Revenue clearance that the value of the distribution is the c.2p disclosed (i.e. book value) and not the subsequent IPO price. Should be relatively straightforward in this case I guess because they are demerging private companies with a value of £50-60k each. The distribution is treated as income so this is important, particularly if they x10 on listing.

[jeff h] 19/1/2005 17:32

We'll just have to wait and see eh topvest...but it's nice to be
in for us longer term holders before the action starts.

[topvest] 19/1/2005 07:27

Jeff H - Yes. Just worked it out myself - there will also be 10% owned by SAF - let's say 60m shares or £60k of net assets per "shell". If you look at other AIM floats then they often raise money (after the founder shares) at 1p or more. They may not do so in this case, but if they do then that means the dividend en specie may be worth 20p and not 2p to shareholders. The share price movement over the last couple of weeks would support this. Also, will we get a chance to invest in the new vehicles on an AIM listing. Hope so!

[shirishg] 19/1/2005 06:19

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