Sinclair Pharma Share Discussion Threads

[mercer95] 29/8/2018 09:44

Cheers steeplejack, I’ll keep holding for now & see if anyone else shows an interest GLA

[steeplejack] 29/8/2018 09:28

Probably best to let the bid run it’s course.The offer once confirmed will certainly run to the end of October.Even if it goes unconditional,the Sinclair quote will continue for some weeks thereafter so you’ll be able to deal until the year end.If it goes full term,then ultimately you’d get 32p cash in your stockbroking account,all very simple.I will just sit and watch.Its possible the bid might be sweetened if the likes of Fidelity or Schroders kick up a fuss.As for third parties entering the fray,unlikely,given that the board have endorsed the takeover and Tosca have indicated acceptance.Of course,if someone came up with an improvement on £25m MIP,maybe the management would back a new takeover approach!

(I’m surprised the quote this morning isn’t nearer 28p)

[gurneyhalleck] 29/8/2018 09:16

Originally bought at 33p in April 2017, averaged down to 25p in April 2018. So 32p would put me up by 28% in 18 months - purely by luck really, was worried about throwing good money after bad when I bought my second tranche at 17p this April...

Been following this thread for a while and 32p surely doesn't give much if anything to long term holders. As per Mercer95's comment, I've not much experience of takeovers either. Advice on next steps would be appreciated based on your past experience. Sell on the market at around 32p or wait for the offer to go full term?

[steeplejack] 29/8/2018 09:11

Indeed the offer has been accepted by the board.Yet it’s not a done deal because the bid to go unconditional requires 75% shareholder acceptance.As things stand,with Tosca ,Abingworth and Lansdowne on board,the level of acceptances is slightly shy of 50%.Committments to accept the Management Incentive Plan is slightly less because the Directors and senior management can’t vote for something so clearly in their own interests.The MIP requires just 50% shareholder acceptance.



It could well come down to what the remaining large shareholders think about the deal in particular Fidelity, Schroders, Mirabaud and on the margin,private clients.They’ll need some of us to vote in favour to get them over the line.Tosca,I guess,has just got fed up with the whole thing and Spooner and gang have probably inferred that unless Tosca back the deal (and the highly lucrative MIP)Sinclair management might just decide to down tools!Make no bones about it,a £25m incentive plan has very real attractions.Unsurprisngly,the board are looking forward to getting £3.5m,no strings attached,by the end of the year.Could colour ones thinking I guess or am I too cynical.

[glynedwards] 29/8/2018 09:08

What was the iii train wreck?

[chozza] 29/8/2018 09:00

Bid touted at 32p. About half of what I need to break even.
Interesting views on Tosca, will they be happy at 32p or like me underwater?
This mornings share price movement would seem to indicate either a belief that the deal will be done or a belated recognition that SPH is seriously undervalued.

Cheers,
Chozza (Still standing survivor of the recent iii train wreck)

[blenny2] 29/8/2018 08:56

dontshoutatonce - the offer has been accepted!!

[dontshoutatonce] 29/8/2018 08:46

dwb81e It is too low an offer and the Chinese must expect refusal at first until a higher offer comes. It's their way. If 32p is accepted the Chinese will be laughing at us and the many of us who will be out of pocket. Oh, I forgot; isn't it the English way to let others stamp all over us because of our naivety or kindness? I hope not this time.

[mercer95] 29/8/2018 08:41

I was thinking that YorkieMike, to be honest I haven’t got much experience of takeovers so any ideas from anyone on how to play this would be appreciated,there217;s no rush to sell is there? I take it until everything gets finalised the stock will continue to trade.

[yorkiemike] 29/8/2018 08:33

I wonder if it will generate any other interest over the next couple of weeks?

[eggbaconandbubble] 29/8/2018 08:30

At 32p this is crooked.

[deb81e] 29/8/2018 04:58

Although 32p ps would give me a small profit, I personally think it's too low a offer for the future potential of this company, ... 50p+ would be more realistic

[steeplejack] 28/8/2018 19:13

The best that can be said for what could be regarded as a well timed,perhaps opportunistic bid ,is that it puts shareholders out of their misery!

This is as good as a done deal.The directors have negotiated incentives of some £25m over the next five years under the MIP ,which will afford the opportunity to become rich.Note that £3.5m of this sum will become payable by Dec 2018 without any preconditions,a nice little Christmas present!(I will have the opportunity to realise a capital loss at a take out price of 32p).Tosca have critically undertaken to vote for the MIP which only requires 50% in favour,the bid proposal 75%.So,it’s unlikely not to go ahead,the Directors have covered the bases as they say and with the Chinese assisting distribution of product going forward,all should do very nicely.Sadly,we arguably have a “Mariana Resources” style acceptance of a low ball bid that secures a lucrative future for management but won’t impress long suffering shareholders.Critically though Tosca have accepted in principle but I can’t believe they’ll be popping corks on the Bollinger.It’s all so very AIM.

“Irrevocable undertakings have also been received from Lansdowne Developed Markets Master Fund Limited and funds managed by Abingworth LLP to vote, or procure the vote, in favour of the Scheme at the Court Meeting and the Resolutions at the General Meeting (or, if the Offer is implemented by way of a Contractual Offer, to accept, or procure acceptance of, the Contractual Offer) in respect of their entire beneficial holdings of Sinclair Shares amounting, in aggregate, to 88,876,793 Sinclair Shares, representing approximately 17.6 per cent. of the issued ordinary share capital of Sinclair on 24 August 2018 (being the last Business Day prior to this Announcement).

In addition, Huadong has received a letter of intent to vote, or procure the vote, in favour of the Scheme at the Court Meeting and the Resolutions at the General Meeting (or, if the Offer is implemented by way of a Contractual Offer, to accept, or procure acceptance of, the Contractual Offer) from funds managed by Toscafund Asset Management LLP, controlling, in aggregate, approximately 29.5 per cent. of the issued ordinary share capital of Sinclair on 24 August 2018 (being the last Business Day prior to this Announcement).

In total, therefore, irrevocable undertakings and a letter of intent to vote, or procure the vote, in favour of the Scheme at the Court Meeting and the Resolutions (other than the MIP Resolution) at the General Meeting (or, if the Offer is implemented by way of a Contractual Offer, to accept or procure acceptance of, such Contractual Offer) have been received from Sinclair Shareholders controlling, in aggregate, 249,449,175 Sinclair Shares, representing approximately 49.5 per cent. of the issued ordinary share capital of Sinclair on 24 August 2018 (being the last Business Day prior to this Announcement).”;

[yorkiemike] 28/8/2018 17:00

Rbs just out - possible offer of 32p per share from the Chinese.

[stalbans66] 24/8/2018 13:34

I agree with you both, why would they cash out now when the future is looking better. We must realise that the new marketing team will need time to bed in and put through bigger sales and some inovative ideas.
Did i see BOTOX all over the press re selling through Superdrug---thats dynamic thinking , so lets wait and see.

[eggbaconandbubble] 24/8/2018 11:31

I can't see any of the big shareholders accepting less than about 60p+ for a straight offer. Is £3-400m too much for a big pharma to stump up for the potential here.

[steeplejack] 24/8/2018 10:21

I simply can’t see why this pedigree list of institutional shareholders would contemplate accepting a cash bid that would crystallise a nice fat capital loss just when it looks like the company could start turning a profit.Its this ‘light at the end of the tunnel’ that has attracted the Chinese.Frankly I don’t think they’ll be a bid because I can’t see the likes of Tosca accepting it.What I hope will emerge is that the Chinese might take an associate interest in Sinclair and assist in promoting the
global marketing of the company’s product range.However,talks seem to be staggering on which suggests there’s some common ground.If a cash bid of 30p or something similar is agreed,I’ll be far from happy.I actually averaged down at 35p some years ago.This stock has been a complete waste of time for decades now,I originally held Maelor! .

[dealit] 23/8/2018 16:57

They must be doing the negotiations via second class post and the translators are on holiday.

[eggbaconandbubble] 23/8/2018 15:01

Someone following SPH must have the knowledge or experience of these matters to list the possible scenarios we have here. Anyone!

[mfhmfh] 23/8/2018 14:57

deadline extended

[mercer95] 23/8/2018 12:42

Feast or famine with Sinclair at the moment, yesterday was busier than usual but today is nothing special,sp is in limbo until the Chinese situation is resolved.

[deb81e] 23/8/2018 08:40

Looking at the lack of share trades this morning it doesn't bode well for a deal ...

[gobbie100] 23/8/2018 08:26

No 7am extension. Deal or no deal announcement later?