Sportingbet Share Discussion Threads

[pyueck] 12/2/2013 11:42

Yep

7.65
Where the new investments are not qualifying investments, managers must, within 30 calendar days of the date on which they became non-qualifying investments, either

sell them (in which case the proceeds can remain in the stocks and shares ISA), or
 transfer them to the investor to be held outside the ISA.

However iii doesn't even allow you to hold them at all, so suppose depends on broker...

[grizzly bare] 12/2/2013 11:14

very happy to have got out of this at 55p

[yesrupnel] 12/2/2013 10:43

I found a few more 'facts'

What happens if I receive shares from a bonus or rights issue which are not ISA or iDealing eligible?

In the event that you receive a holding as a result of a Corporate action which is not eligible to be held in an ISA or iDealing account, we will either advise you that you need to sell the stock within 30 days of receipt, transfer the holding to a standard trading account or we will arrange for the stock to be rematerialised and the resultant certificates sent to you.
https://www.idealing.com/en/help/faq/isa#rightsissue

BUT

An investment that was eligible for an ISA on purchase later becomes ineligible
This breach can only be repaired if it is inadvertent. If the investments are ineligible at the time the breach is found, then the manager can sell those investments to repair the breach. The proceeds can remain within the ISA and used to buy eligible investments. If the investments are eligible at the time the breach is found, but have been ineligible at some time since purchase, then no action is required to repair the breach. Auditors will seek a recovery for the period that the investments were ineligible

[pyueck] 12/2/2013 10:21

Yesrupnel. Yes if GVC were to rise, the sportinget price should rise to reflect the increased value of the GVC part of the deal (to people able to hold GVC shares). However if your holding is small (i have no idea) selling at 55.25p and paying say a £20 comission could cost you more than just selling at 55p. Due to the mix and match facility you should never get less than 55p cash a share no matter how far GVC fall.

However as I have already explained, even though it is slight there is always a risk something happens and the deal falls though (this could either be good if a new bidder comes in, or bad say if sportingbet's results are currently awful and the bidders try to get out of it). The current share price indicates there is a slight risk premium on the share of around 3.5% (compared to the value of he deal with cash + the current price of GVC shares). This is not something really to worry about, but you should be aware that until you get the cash this is not a 'done deal'.

[pyueck] 12/2/2013 10:15

It's ISA rules, no AIM shares in ISA's unless they are also listed on a recognised exchange somewhere else. Reason they are not on a 'recongised' exchange and only shares held in 'recognised' exchanges may be in ISA according to HMRC rules. This might change soon, there is a consultation on it, but not in time for this deal.

[yesrupnel] 12/2/2013 10:10

Thanks pyueck for the quick reply.

I did buy some non ISA shares in an ISA (the broker let it through - it was my mistake thinking it was an ISA'ble share and there fault for letting it through) but they contacted me and said I had to sell them within approx a month - I have also seen a note on this BB saying you have upto 28 days to sell a non-ISA'ble share in your ISA. Does anybody have any views on this 'fact' because it may open up opportunities to go down the Max Shares option if you have SBT shares in an ISA.

In the last month SBT shares have risen to 55.5p and GVC to 275p both on 28 Jan 2013 and they have both fallen since then.

So pyueck - are you saying that if I waited until say, the last day to elect to what to do with the shares (4 March) the share price could rise (equally of course it could fall) and I might potentially get more than 55p? And as you say the difference in real profit for me could be small once you take the dealing costs into account.

[trentendboy] 12/2/2013 09:42

Good posts and advice

Will check the TD rules - I was hoping for the max shares and sell within a month option

[pyueck] 12/2/2013 09:34

You cannot hold AIM shares in ISA's so therefore cannot take any GVC shares. You will automatically opt for all cash at 55p per sportingbet share. As the shares of GVC may have a equivilent value of more than 55p, you may want to set up a sell order say for like 55.5p, so that if the value of sportingbet increases before the bid finalises, reflecting the increased value of the GVC element of the deal, you will still benefit. Your sell order should make sure you cover the dealing costs of selling as opposed to just taking the 55p with no dealing costs.

[yesrupnel] 12/2/2013 09:29

Sorry if this has been covered already.

I hold my SBT shares in a number of iii ISAs and have to notify them by 5 March what I want to do, e.g. max cash, max shares.

On my iii letter it states

'Please Note if you hold your shares within your ISA account a defualt of Option 1 (Max Cash) will be applied to your account as the GVC shares are not ISA eligible.'


I an considering taking the Max Shares option, ie take the payment in as many GVC shares as I can but it would appear that option is not available to me.

Can anybody shed any light on this please?

[sea and sky] 12/2/2013 09:06

thanks ex-broker on the ISA info earlier, I will check that out.

[pyueck] 12/2/2013 08:04

Tony I love it how in 3 days you go from:

'pyueck

I believe you're wrong in this case, the deal is done and WMH have already renegotiated the price and the offer has been recomended by the boards of all parties.


It is just a matter of the vote for the scheme of arrangement to become effective, of which all parties have irrevocable undertakings from their largest shareholders. And are SBT shareholders going to vote it down given the downside?

I don't think so

WMH would also have had access to the books to see if trading had fallen off a cliff'

to

'yes I guess there could be a number of explanations Exbroker

The thing I find baffling is the lack of buyers willing to take up the slack'

Gone from 'done deal' to a definate sense of nerves in your tone. Guys stop worrying, the deal is not a 'done deal' until you get your cash, but equally a fall of the share 2.5% below deal price is hardly cause for mass panic...

[tonysss13] 11/2/2013 20:06

yes I guess there could be a number of explanations Exbroker

The thing I find baffling is the lack of buyers willing to take up the slack

[exbroker] 11/2/2013 20:04

It could be an index tracker balancing the portfolio at the end of each day, must have outflows to be a seller all the time, or its active using it as a piggy bank, its a good way to pretend that you are fully invested until you can buy the stock you want to replace it with.

[tonysss13] 11/2/2013 19:56

one seller has been doing the damage since last monday, generally in the last half hour. if there was even a whiff of problems with the deal then I'd expect any selling to be heavier & more frantic. difficult to know what his game is though.

[exbroker] 11/2/2013 19:16

Arbs are very nervous creatures, they worry that some one else knows more than they do!!

[trentendboy] 11/2/2013 19:12

For sure sbt would be 10-20 percent higher if still trading on US news.

Sbt have or had a way back in if I recall.

The brand is worth a lot in an open US market.

All the better for GVC

[shano2] 11/2/2013 19:04

I think there may be some migration over to BPTY after what has happened in the USA (Gov Christie).
If this deal with W.Hill had not been agreed then I am sure SBT would be trading a lot higher as a result of the above.

[exbroker] 11/2/2013 18:32

That is them opening a CFD for a hedge fund. It could be that some of the other prime brokers are at their position limits for the stock.I have given stock up to them before now there might be a rule 8.3 from a hedgie tomorrow with those numbers in it going in and out.
I am a little nervous about the price having managed to buy stock as low as 53.5 this afternoon has anybody heard anything or is it just boredom selling?

[tonysss13] 11/2/2013 17:06

Bank of Nova Scotia holding RNS at 15.40 today

looks like a 27m CFD short sale at 54p

seems an odd thing to do unless it's a hedge against shares bought

[exbroker] 11/2/2013 15:22

I think you get 28 days to sell or transfer them from the ISA. nice wide spread so you can get the dealer to cross them high or low depending on if you want to bump up the value of the Isa or not if you are keeping the stock.

[sea and sky] 11/2/2013 14:41

hmmm - got the 'Scheme of Arrangement' this morning and forgot the GVC shares can't be kept in an ISA... ho hum....

[trentendboy] 08/2/2013 22:25

Indeed. Sbt could go back in.

Could be good for gvc actually as it keeps brands.

Paradise poker was big

[oohrogerpalmer] 08/2/2013 21:23

Wonder what price SBT would be now US has opened the door a little ???

[tyranosaurus] 08/2/2013 18:55

These irrevocable acceptances probably have a get out clause in the event of a higher bid.

Surely the recent news must make SBT worth more as other gaming stocks have shown big rises.

Come on Paddy Power, lets have a counter bid. It`s not too late.