Taylor Wimpey Share Discussion Threads

[sir rational] 31/3/2011 10:11

NA deferred tax assets go with the deal so it's not as brilliant as you might think

[sir rational] 31/3/2011 09:53

There will be a conference call for analysts and investors to discuss the Disposal at 10.00am (BST) today. The dial in number is [phone] (title: Taylor Wimpey).

[jibba_jabba] 31/3/2011 09:51

Nationwide HPI Actual 0.5% Forcast -0.1% Previous 0.7%

[jibba_jabba] 31/3/2011 09:49

Build now pay later, a new Tory scheme to get the housing market moving..

[sir rational] 31/3/2011 09:37

Today already saw new 6 month high so not surprising being challenged

[sir rational] 31/3/2011 09:34

tolmers - good spot.

Also - got off lightly on the pensions:

GBP32.5m of the proceeds of the Disposal will be paid into the Group's UK pension funds

vs

Pensions

The IAS19 deficit, which appears on the Group's balance sheet, is GBP248.5 million at 31 December 2010 (2009: GBP406.4 million). The reduction in the deficit is due to the contributions made during the year, the benefit of the impact of the government announced switch from RPI to CPI reducing the future deferred member liabilities and the lower inflation assumption offset by lower discount rates and higher mortality assumption. The balance sheet also includes GBP2.0 million of post-retirement healthcare benefit obligations (2009: GBP2.9 million).

Formal actuarial valuations of both of the Company's main pension schemes, the Taylor Woodrow Group Pension & Life Assurance Fund (TWGP&LAF) and the George Wimpey Staff Pension Scheme (GWSPS), as at 31 March 2010 were completed during February 2011. The results of these valuations are a deficit of GBP264 million relating to the TWGP&LAF (previous deficit GBP163 million) and a deficit of GBP259 million relating to the GWSPS (previous deficit GBP215 million).

[sir rational] 31/3/2011 09:27

7. Current trading

In the UK, we have been encouraged by the enhanced sales rates, sales prices and margins that we are achieving on recent outlet openings, whether from new acquisitions or from the existing land portfolio. We remain on track to achieve our target of double-digit operating margins in 2012, subject to continuing stable market conditions.

[127tolmers] 31/3/2011 09:21

See note 3
Net assets were £699.5M less cash of £111.9M to leave adjusted net assets of £587.M = $923M and buyers piad $955M for these assets.

BUT buyers also have to pay cash balances ie another £111.9M approx ON TOP.

Waiting to hear more in the circular as to whether there are UK deferred tax assets that can now be booked or whether they stay with TM

[gbh2] 31/3/2011 09:16

Price reaction suggesting this was already priced in!

[sir rational] 31/3/2011 09:15

Let's wait for the conf call.

Yes - 50p looks a reasonable baseline scenario now, I'm not selling before then but it might take a few weeks.

Might reassess whether 50p is too cheap based on possible news at AGM.

[sir rational] 31/3/2011 09:14

There will be a conference call for analysts and investors to discuss the Disposal at 10.00am (BST) today. The dial in number is [phone] (title: Taylor Wimpey).

[muscletrade] 31/3/2011 09:09

back of the envelope....NAV should have increased about a penny to 58p. approx a third of that has now been totally derisked. therefore assuming same discount to NAV as yesterday, allowing for one third now derisked. the price should be approx 48P.all IMHO

[kfp] 31/3/2011 08:58

SR says 45p , up to 50p on "TM news"

[imastu pidgitaswell] 31/3/2011 08:53

Great - so the answer WAS 42...

[kfp] 31/3/2011 08:27

Sir Rationale ? comment please

[imastu pidgitaswell] 31/3/2011 08:24

"As a result of the Disposal, the Company will retire the GBP350m "Facility A" of its GBP950m syndicated revolving credit facility. The reduction in net borrowings will result in a reduction in the margin of 50 basis points on the syndicated revolving credit facility due to lower gearing. The margin on its GBP100m Prudential/M&G Fund Facility will also reduce by 50 basis points."

It's apparently earnings dilutive at the start - as the current US and Canada margins are migher than the current UK ones. Not unexpected, but wondering of the market 'hadn't thought of that' before.

And another £20m in fees. The amount of bloody cash these advisers are able to make from a distressed business (2 refinancings charges, punitive interest rates and fee facilities and now this) is staggering. Come the revoultion, second against the wall (after tax consultants) will be...

We'll see - could be an interesting day.

[imastu pidgitaswell] 31/3/2011 08:18

3.4% above net assets for a trade sale.

And the current net assets are?

Around 58-60p.




Hmmm......

[kfp] 31/3/2011 08:15

Level 2 22mil sellers 1.3 mil buyers

[newkid] 31/3/2011 08:15

Am I right in saying that TW is now debt free. If so this should be well above it's current share price

[damac] 31/3/2011 08:12

Hopefully the analysts will be kind to us after the conference call at 10.00am

[kfp] 31/3/2011 08:07

Buy on the rumour sell on the news, what do we reckon , 45p initially ?

[barf2] 31/3/2011 08:05

I'd hope for a bit of a better response in the share price than the early lift.

Hopefully we'll see some upgrades now etc


Although I dare say panmure Gordon are busy putting out a note exclaiming dismay that TW have sold the booming US arm!

;-)

[thinking] 31/3/2011 07:13

The above is the first part there is more detail in the full announcement.

[thinking] 31/3/2011 07:11

RNS Number : 9851D

Taylor Wimpey PLC

31 March 2011

31 March 2011

FOR IMMEDIATE RELEASE

Taylor Wimpey plc (the "Company") announces the sale of its North American Business for $955m(1) (GBP595m(2) ) (the "Disposal").

The Company has agreed to sell the entire issued share capital of Taylor Woodrow Holdings (USA), Inc. and Taylor Wimpey Holdings of Canada, Corporation ("the North American Business") to TMM Holdings Limited Partnership, a partnership controlled by certain investment funds affiliated with TPG Capital, certain investment funds affiliated with Oaktree Capital Management, L.P., as well as JH Investments Inc., and its subsidiaries (the "Buyers") for a base consideration of $955m(1) (GBP595m at the current exchange rate(2) ) payable on Completion. The Company will also receive additional proceeds for cash balances in the North American Business as at 31 December 2010 and net capital invested by the Company in the North American Business from 1 January 2011 to Completion.

Highlights of the Disposal:

- The Disposal is a significant step towards achieving the Group's strategic objective of focusing on its core UK housing business, creating a strong financial base for future investment;

- The base consideration of $955m(1) (GBP595m at the current exchange rate(2) ) represents a premium of 3.4% to adjusted net assets of $923m(3) (as at 31 December 2010); and

- The net cash proceeds of the Disposal will be applied to reduce the Group's borrowings and its pension deficit, resulting in an overall increase in its financial flexibility.

Following the Disposal, the Group will build on the significant performance improvement in the UK. The Group will continue to focus on delivering margin improvement from the existing land portfolio and adding new sites where good opportunities are identified.

Pete Redfern, Group Chief Executive, said:

"We are delighted to announce the sale of our North American Business, which is a significant step towards our goal of becoming a UK focused homebuilder. The sale will provide us with a strengthened balance sheet and increased financial capacity to invest in the UK and to pursue our strategic aims of focusing on margin growth.

"Following a competitive process, we are pleased to have achieved a price that reflects an attractive valuation for this business. I have been hugely impressed by our North American employees and would like to take this opportunity to thank them for their hard work, loyalty and commitment over many years and in relation to this transaction."

The Company's financial advisers in connection with the Disposal are J. P. Morgan Cazenove and Hsbc Securities (Canada) Inc.

(1) Pre transaction expenses

(2) Translated at the prevailing exchange rate of USD:GBP of 1.60 as at 30 March 2011

(3) Represents GBP699.5m of net assets, less cash of GBP111.9m, converted to US Dollars at a 31 December 2010 USD:GBP exchange rate of 1.57

Conference call:

There will be a conference call for analysts and investors to discuss the Disposal at 10.00am (BST) today. The dial in number is [phone] (title: Taylor Wimpey). A recording of the call will be available on www.taylorwimpeyplc.com later today.