Sigmaroc Share Discussion Threads

[elbrus55] 23/11/2023 17:43

Events in the past are always predictable.

[twirl] 23/11/2023 14:19

Predictable in the short term it would gravitate to 47.

Market is short term anyway and the deal is long term.

[clocktower] 23/11/2023 13:49

The market does not like the deal it seems to me.

[masurenguy] 23/11/2023 08:17

RESTORATION OF TRADING ON AIM: SIGMAROC PLC

Trading on AIM for the under mentioned securities was temporarily suspended. The suspension is lifted from 23/11/2023, an admission document having been published.

[af004] 23/11/2023 08:09

Will this now move out of AIM?

[clocktower] 23/11/2023 07:48

Might turn out to be like a snake that has swallowed something so big that it splits it’s own body.

I doubt if we will see the share price back at it’s former highs but we are more likely to see it lower than it’s former lows imo.

DYOR

[bagpuss67] 23/11/2023 07:26

Assuming they have bought these assets for fair value (I know subject of debate) and they are eps accretive presumably the question of dilution is not as relevant as if they had raised to spend on funding losses say... It more whether you may think you want to top up a bit lower than the market and you don't think you could get better in the market?

[elbrus55] 23/11/2023 06:54

It looks like CRH will become the largest shareholder with about 15%. It is not a bad thing in that it helps them want to make the acqusition to be a success for SRCThere may be some hangover on the share price if CRH try to overload their holding when they are allowed to do so in late 2024 / early 2025.

[bagpuss67] 22/11/2023 21:09

Article on IC by Simon Thompson. Likes it and maintains buy rating.

[cerrito] 22/11/2023 12:28

As someone foolish enough to use Barclays the retail offer is academic and I must find time to change brokers.Not sure how many I would have bought anyway , despite the upbeat comments from Liberum -and I will need time to read their 48 page report fully.

[greg the grinch] 22/11/2023 11:33

The bonus options are too cheap... the reason not at 70p+ now is leaks on this deal?

[greg the grinch] 22/11/2023 11:19

Hmm.... looking at the share price graph makes me wonder if this news leaked?

[sammu] 22/11/2023 10:35

CRH would say it is an attractive valuation. For them it is - selling non core assets that they don't have the management time/focus on. Doesn't look as cheap as some of the recent small deals, but I guess the quality may be materially different. Opportunity for efficiency savings - management strong suit- must be significant.

[aishah] 22/11/2023 09:32

CRH and mgmt(£950k) subscribing:

'As part of the Placing, a CRH Group company intends to conditionally subscribe for Placing Shares

Certain Directors of SigmaRoc intend to participate in the Fundraising for c.£395,000 in aggregate, respectively, of Placing Shares in the Placing at the Placing Price. Other senior management intend to participate for c.£555,000 in aggregate, respectively, of new Ordinary Shares in the Placing at the Placing Price.'

[elsa7878] 22/11/2023 09:19

Albert Manifold, Chief Executive of CRH, said: "The decision to divest at an attractive valuation ....".

[se81] 22/11/2023 09:04

The Liberum take on it...

SigmaRoc’s proposed purchase of CRH’s European lime
business is a once in a lifetime opportunity to build northern
Europe’s leader in lime and limestone. CRH’s assets are
extremely complementary to Nordkalk’s. It is paying only
5.9x EV/EBITDA upfront (7.1x after the contingent deferred
payment) for a strategic asset. We prudently estimate the
transaction is earnings accretive by around 28% as
synergies are delivered. The SigmaRoc investment case is
augmented by this transaction: it is now a focused industry
leader capable of generating free cash flow in excess of
£100m p.a.. This is very likely to be its last equity raise. U/R
pending general meeting

[scepticalinvestor] 22/11/2023 08:28

Will buy at 20p in a few weeks time no doubt

[elbrus55] 22/11/2023 08:26

I believe you need to subscribe 60% of your current holding at 47.5p to avoid dilution.I put in for that and a bit extra.It is all a bit rushed but also aware that these things can close suddenly on you if you delay.

[basem1] 22/11/2023 08:15

Yes your right Not as good as I thought

[terry236] 22/11/2023 08:05

It’s a complicated RNS

[terry236] 22/11/2023 08:05

Pretty sure that’s the new combined group EBITDA

[basem1] 22/11/2023 08:02

I thought ebitda was 211m gbp ?

[jaf111] 22/11/2023 08:00

Certainly complicated…..it will be interesting to see how the fundraising goes….

[terry236] 22/11/2023 07:57

A cheap multiple? Not sure that’s correct. A complicated RNS tbf but the acquisition cost c.1bn euros, with a combined 133.7m EBITDA so 7.5x EBITDA multiple… but of that EBITDA what drops to the bottom line and what’s the real multiple being paid?

[bagpuss67] 22/11/2023 07:40

Pleased they have suspended the shares. I wish more aim companies would do that at these times...