Uniq Plc Share Discussion Threads

[daytraders] 31/3/2011 21:08

i think below 50p, as most holders will see the 64p open and sale as there think they have made a big profit.

[purplebox] 31/3/2011 18:29

Listed on the AIM from tomorrow...

...it's going to be interesting :-).

[neverabanker] 28/3/2011 01:35

60-75p would value the company between 70-88m. If current profitabilty is about 5m then would suggest a PE of 14-17 might justify this. The full year results 2010, and the Q1 for 2011 should be out within 2 weeks or so(in 2010 they were issued on 15/4) and this will no doubt give a better idea of likely profit and have an impact on the share price.
The circular for shareholders (page 59) on the reorganisation gave a net asset value (post restructure) for the company irrespective of anything else of 103M on 30/6/2010 which might mean just on that basis alone 85-90p per share was justified on April 1st (this does not take into account the -favourable- trading conditions in the 2nd half of 2010).

With such a huge portion of the shares however it is what Newco does that really matters and if you read the circular there are some interesting paragraphs which do not seem to have been brought up here or even in the press in any way. These might exercise some people's thoughts. I have cut and pasted them below.

The sections from the circular are quite long but basically Newco is simply a short term vehicle to achieve realisation of the value of the shares (and effectively the company- or at least 90+% of it -without putting the company itself out of business) for the trustees/PPF.

Newco will become immediately insolvent, be put into administration and the administrator will decide how best to realise the assets for the major creditor which will be the Pension protection fund (PPF). It seems that this will be undertaken in a short/medium term time frame. The obvious answer ( see risk factor 3 below) will be to effectively engineer a takeover by selling them to a single purchaser who could then exercise the right to compulsorily acquire the rest of the shares.

Another option is that they might start to put them on to the market where they may be picked up by institutional buyers who still own the majority of the 9.2% (and who would undoubtedly prefer that the company was not all in the hands of a controlling interest) - equally the remaining II's might just want to get rid of what they have left as soon as trading opens which would hit the share price in the short term - my guess though is they will keep them in case there is a takeover in the offing. So there is still much to be played out here.

My final though is that given that even the IAS valuation of the pension deficit in the circular was 132m -and this would probably not be any where near enough to satisfy the PPF given buy out value of deficit was 400m+. But even if it was, then if the trustees/PPF are looking to get 130m+ or more from a takeover then the administrator may have expect that a realistic offer for the shares might be upwards of 120p or more. So... On balance, other than in the very short term, I don't see the price going down much as it is not in the interest of the administrator to dump the shares on the market and overall it seems reasonable to expect the price to drift up especially if the results are good for Q1 or the newco administrator actively seeks a buyer for the company - also - the directors of uniq have also been incentivised generously to immediately maximise the value of the company. I Would be interested in thoughts of others on this.

This is from section 4 of the chairman's letter in the circular

As part of the Restructuring, Newco will be placed into administration. The administrator that is appointed will seek to effect a transaction pursuant to which Newco will realise all or part of its shareholding in theCompany for cash to satisfy Newco's debts, in particular its Section 75 debt owed to the Trustee. In the event that Newco's entire shareholding in the Company is sold to a single purchaser (such a sale being governed by the provisions of the City Code), the third party purchaser could utilise its rights under the Companies Act to compulsorily acquire the remaining 9.8 per cent. of the Uniq Shares held by Shareholders other than Newco.

this from Section 3 RISKS from the restructuring also in the circular

Risks related to Newco being a significant shareholder following the Restructuring

Following the Restructuring, Newco will own a 90.2 per cent. shareholding in the Company. This significant concentration of share ownership may affect the market value of the Uniq Shares because investors may believe that there are disadvantages in owning shares in companies with a controlling shareholder.
As a result of its 90.2 per cent. shareholding in the Company following the Restructuring, Newco and Newco's major creditor, the Trustee (or the PPF exercising the Trustee's creditor rights during the PPF assessment period), will have the ability to determine the outcome of matters requiring shareholder approval.
However, certain undertakings have been provided in the IRA in relation to the exercise of shareholder rights to ensure that these shareholder rights are exercised in furtherance of the Restructuring. The IRA also provides that Newco and the Trustee shall accept that the day to day management of the Group shall be the sole responsibility of the Board, and neither the Company nor the Trustee shall instruct Newco to enter into transactions with a member of the Group except on an arm's length and on a normal commercial basis in the
context of the Restructuring.
As the parties' intention under the IRA is for Newco to effect a transaction pursuant to which Newco will realise all or part of its shareholding in the Company, it is likely that Newco's entire shareholding in the Company will either be sold to a single third party purchaser or will be placed in the market in the short to medium term. The Company cannot predict the timing, the volume or the manner of the sale of Newco's shareholding at the present time. A sale in the market of a substantial number of the Uniq Shares, or the perception that such a sale could occur, could adversely affect the market value of the Uniq Shares.
In the event that Newco's entire shareholding in the Company is sold to a single purchaser (such a sale being governed by the provisions of the City Code), there is a risk that the third party purchaser would utilise its rights under the Companies Act to compulsorily acquire the remaining 9.8 per cent. of the Uniq Shares held by Shareholders other than Newco at the price agreed between Newco and the third party purchaser.
In order to achieve the maximum value of the Uniq Shares for all Shareholders in such a sale, the Remuneration Committee recommended to the Board that a short term value maximisation plan be established for the Group's senior executives that is linked to the achievement of pre-defined equity value
realisation targets.

[purplebox] 25/3/2011 08:49

I would guess they will open around 60.0p on the 1st April and would then expect them to trend upwards - after a few weeks the market will have settled on a true price.

I'm currently considering taking a punt when they open - depending on the price of course...

[psolomons] 25/3/2011 08:45

You are right Billy you are not bankrupt. I was thinking pre share adjustment.

[billybankrupt] 24/3/2011 19:20

surely not!
With a dilution priced in beforehand, I would expect 75p then upwards

If you are correct - i am in sh.....

[psolomons] 24/3/2011 16:04

7.5p then up further.

[billybankrupt] 24/3/2011 15:00

Well thats it then
I will wait for my three letters from the pension scheme - 1 for each of the pensions.
I will then hope that the shares I hold will rise sufficiently to fill the gap in the pension.

someone propose a price to start from for the share!!

[propane] 24/3/2011 14:45

24 March 2011

Uniq plc

Proposed Restructuring

Satisfaction of conditions to the Restructuring

Uniq plc (the "Company"), the chilled convenience food group, announces that all of the conditions to the proposed restructuring have been satisfied. As a result, the Company and its subsidiaries have been discharged from their obligations in relation to the defined benefit section of the Company's pension scheme.

It is expected that the trading of Uniq Shares on the Main Market and the listing of Uniq Shares on the Official List will each be cancelled at 8.00 a.m. (London time) on 1 April 2011. Admission of Uniq Shares to trading on AIM is expected to occur at 8.00 a.m. (London time) on 1 April 2011.



Except as otherwise defined, capitalised terms used herein have the same meanings as set out in the circular posted to shareholders on 9 February 2011.

[propane] 24/3/2011 14:44

24 March 2011

Uniq plc

Proposed Restructuring

Satisfaction of conditions to the Restructuring

Uniq plc (the "Company"), the chilled convenience food group, announces that all of the conditions to the proposed restructuring have been satisfied. As a result, the Company and its subsidiaries have been discharged from their obligations in relation to the defined benefit section of the Company's pension scheme.

It is expected that the trading of Uniq Shares on the Main Market and the listing of Uniq Shares on the Official List will each be cancelled at 8.00 a.m. (London time) on 1 April 2011. Admission of Uniq Shares to trading on AIM is expected to occur at 8.00 a.m. (London time) on 1 April 2011.



Except as otherwise defined, capitalised terms used herein have the same meanings as set out in the circular posted to shareholders on 9 February 2011.

[propane] 21/3/2011 12:53

21 March 2011

Uniq plc

Proposed Restructuring

Scheme of Arrangement becomes effective

Uniq plc (the "Company"), the chilled convenience food group, announces that the scheme of arrangement necessary to implement the proposed restructuring of the Company (the "Restructuring") has received Court sanction and has become effective in accordance with its terms.

Completion of the Restructuring remains subject to the satisfaction or, if permitted, waiver of the remaining conditions to the Restructuring set out in the circular sent to Shareholders on 9 February 2011 (the "Circular"). It is expected that these remaining conditions to the Restructuring will be satisfied by 31 March 2011.

It is expected that the trading of Uniq Shares on the Main Market and the listing of Uniq Shares on the Official List will each be cancelled at 8.00 a.m. (London time) on 1 April 2011. Admission of Uniq Shares to trading on AIM is expected to occur at 8.00 a.m. (London time) on 1 April 2011.

At admission to AIM, there will be 117,187,949 1p ordinary shares in issue with the ISIN GB00B63B4X28. The ticker for Uniq shares will continue to be UNIQ.

Except as otherwise defined herein, capitalised terms used herein have the same meanings as set out in the Circular.

[propane] 21/3/2011 12:52

21 March 2011

Uniq plc

Proposed Restructuring

Scheme of Arrangement becomes effective

Uniq plc (the "Company"), the chilled convenience food group, announces that the scheme of arrangement necessary to implement the proposed restructuring of the Company (the "Restructuring") has received Court sanction and has become effective in accordance with its terms.

Completion of the Restructuring remains subject to the satisfaction or, if permitted, waiver of the remaining conditions to the Restructuring set out in the circular sent to Shareholders on 9 February 2011 (the "Circular"). It is expected that these remaining conditions to the Restructuring will be satisfied by 31 March 2011.

It is expected that the trading of Uniq Shares on the Main Market and the listing of Uniq Shares on the Official List will each be cancelled at 8.00 a.m. (London time) on 1 April 2011. Admission of Uniq Shares to trading on AIM is expected to occur at 8.00 a.m. (London time) on 1 April 2011.

At admission to AIM, there will be 117,187,949 1p ordinary shares in issue with the ISIN GB00B63B4X28. The ticker for Uniq shares will continue to be UNIQ.

Except as otherwise defined herein, capitalised terms used herein have the same meanings as set out in the Circular.

[propane] 21/3/2011 12:04

Any other thoughts on price direction after relisting?

[psolomons] 18/3/2011 08:29

Expect a decent rise on April 1st. The first day without the burdon of a huge pension deficit. The phoenix has risen.

[loverat] 18/3/2011 07:53

I like this description.....

The company will no longer be, as one observer memorably described it, "a pension scheme with a yoghurt business"

[purplebox] 17/3/2011 09:29

RNS - Temporary Suspension - UNIQ Plc



RNS - Suspension of Shares

[propane] 17/3/2011 09:28

Pension deficit swap should fuel Uniq revival
By David Blackwell

Published: March 9 2011 21:56 | Last updated: March 9 2011 21:56

Uniq, the chilled foods specialist that was once the UK's largest milk and cheese distributor, will next month start living up to its misspelt name.

It will become the first company to have carried out what is in effect a pension deficit-for-equity swap. Other companies will be watching carefully to see how events unfold.

Next week the courts should sanction the scheme, which was announced a month ago. Uniq, formerly known as Unigate, will cede 90 per cent of its shares to its pension scheme. The company, which has a market capitalisation of about £9m ($14.58m), will be relieved of the burden of the pension scheme deficit of more than £400m.

It could not have completed the plan and remained on the main market, where the rules require a free float of at least 25 per cent. So it will be moving to Aim on April 1.

The immediate effect will be a 10-fold rise in the share price. There will be no increase in the value of existing investors' holdings, as they will own only 10 per cent of the company. But the market capitalisation will rise to £90m, almost big enough to put the company in the FTSE Aim 50 index.

The company will no longer be, as one observer memorably described it, "a pension scheme with a yoghurt business". A fourth-quarter trading update at the beginning of the year said sales for last year rose 6.8 per cent to £312m, a remarkable achievement considering the uncertainty that has surrounded the business.

The growth has been driven by the Food to Go division, which supplies sandwiches and salads to retailers. The biggest customer is Marks and Spencer, which accounts for 50 per cent of revenues.

But life in the desserts division has been more difficult. The business is undergoing a review following the loss, announced in January, of £10m of annualised sales. It has also been hit by the cost of cream doubling and the consequent need to increase prices.

The company had £10m in cash at the end of December. After paying £14m to the pension scheme as part of the deal and other costs the net debt will be about £14m. It will have banking facilities of £25m, which would not have been available in the absence of the deal.

There will be shareholders and pensioners who feel they have been hard done by. But it must be better for everyone that the company will have survived instead of being wound up.

The shareholders and pension scheme will have a stake in a profitable going concern. The management should emerge reinvigorated and incentivised. And Aim may find itself with a new role as a safety net for other companies wrestling with large pension deficits.

Spotting hidden value on Aim

The number of companies on Aim is continuing to fall. At the end of last month there were 1,177 companies quoted, compared with 1,194 at the end of last year.

However, the rate of decline is slowing, and companies are being taken over rather than deciding to abandon their quotes. Last month Clyde Process Solutions, maker of pneumatic conveying and air filtration equipment, was bought by a German company for £35m in cash; Focus Solutions, the financial services software company, was acquired by Standard Life for £42m in cash; and Velosi, provider of quality control services to the oil and gas sector, was sold to Carlyle, the private equity group, for £88m.

Such deals pale into insignificance when compared with Western Coal, which has been taken over by New York Stock Exchange-listed Walter Energy. Western's market capitalisation of more than £2bn made it the biggest company on Aim. Astonishing to think that when the company was formed through the merger of Aim-quoted Cambrian Mining and Toronto-listed Western Canadian Coal less than two years ago, it had a combined market capitalisation of just £150m.

It is not just predators that are spotting hidden value. Green Dragon Gas, the specialist in Chinese coal-bed methane gas, this week demerged its Greka Drilling business. Shareholders received three Greka shares for every Green Dragon share.

Green Dragon has grown to a market capitalisation of £1.3bn since floating in 2006, making it the eighth-largest company on Aim. But the company felt the value of Greka was not reflected in its share price.

It looks as though it was right. When Greka joined the market on Tuesday, its shares closed at 32p, then rose on Wednesday to 38p. The company, which can now work for third parties as well as Green Dragon, has a market capitalisation of more than £151m. Meanwhile, shares in Green Dragon, which will be seeking a Hong Kong quote later this year, have remained steady.
.

[jmiddy] 17/3/2011 09:23

can't read that link. can you post on here pls?

[propane] 17/3/2011 09:15

Pension deficit swap should fuel Uniq revival

[propane] 17/3/2011 09:13

Pension deficit swap should fuel Uniq revival

[billybankrupt] 09/3/2011 17:29

Could liven up if Greencore show interest now they have pulled away from NFDS

[jmiddy] 09/3/2011 12:15

not for me, i'm in an ISA! :(

[psolomons] 09/3/2011 11:56

Once the 17th has passed we could seen some progress.

[jmiddy] 09/3/2011 11:44

quiet here now...