Vectura Share Discussion Threads

[boadicea] 10/6/2021 09:03

No figures and not even a regulatory rns. Is it really so insignificant? There is a support commitment of £10m attached. Also I have found no timely notification of the put option.

"In Q1 2021, Vectura signed a put option for the sale of its oral manufacturing facility in Lyon. This process remains ongoing, and is expected to complete later this year. If the option is exercised, the Group would offer financial support to the site until the end of 2022 of approximately GBP10m, equivalent to three years of net negative cash flows for the site. Given the uncertainty over the ability of the site to become cash flow positive over the next five years, and the Group's focus on inhalation, this transaction is expected to deliver improved financial returns versus retaining the site, as well as simplifying further the Group's operations."
[Source: RNS, Trading update, 26.5.21.]

[bill hunt] 10/6/2021 08:13

Selling off Lyon plant via Management buy out. No figures?

[davr0s] 09/6/2021 19:32

Think that's still above the offer price. I'm not a big fan of speculating but that still looks interesting to me. Won't be selling out just yet just in case....

[boadicea] 09/6/2021 18:34

base7 - Nearly 7% of company shown as traded after the bell this evening.

[base7] 09/6/2021 13:09

Today’s RNS confirms that Will has bought no shares at all during his brief tenure while having options at virtually mill cost worth almost £3 mill + ,no doubt ,an excellent deal with Carlyle which will also highly inventive use him for the expected asset strip over the next 3/5 years ,I suspect leaving him with a favourably priced MBO of his CDMO business -win win win for Downie !

[davr0s] 08/6/2021 20:19

Yeah maybe - that's quite a lot of volume above the offer price. Time will tell.... not planning to exit my position at the moment

[base7] 08/6/2021 19:03

Around 3% of issues shares bought & shown after close -interesting ?

[vecturaking] 07/6/2021 16:47

😂😂😂

[guru] 07/6/2021 16:07

Bubbling away nicely and getting stronger...

[mveleba] 05/6/2021 19:35

Ok, understood, that's very clear.

[boadicea] 05/6/2021 18:15

mveleba - I refer you to the takeover rule I quoted in 11625 -

"If the offeror acquires an interest in shares in an offeree company (i.e. a target) at a price higher than the value of the offer, the offer must be increased accordingly."

This does not actually debar them from buying shares over the original offer price but it would then invalidate the offer.

[mveleba] 05/6/2021 13:38

Is Carlyle allowed to buy shares in the market? It sounds rather silly but can they in theory do this? not what SPV ir legal entity would they use for this. However if someone comes in with higher offer, and they didn't want to compete,they would get the uplift as a small profit. If they buy even above the offer price it allows them to vote in favour of the deal even though they are overpaying but they know better themselves if the offer is dead cheap anyway. If they have to increase their own offer to get the deal done they will just pay themselves the proceeds back anyway. Would be quite capital intensive but this... There is a lot of dry powder out there at the moment.

[jimboyce] 05/6/2021 08:57

Thanks for that. I think I will hold on to my shares until the waters become clearer. I like your analogy.

[boadicea] 05/6/2021 00:37

Jim - The premium price is not the work of the 'market makers'. Most of the trades are via the book and all participants are trading - whether as 'traders' or investors. Also every such trade is both a buy and a sell. If you think of a 'market maker' as a shop keeper buying and selling (= 'O' trades), then think of the SETS system ('AT' trades) as the glass fronted case on the newsagent's wall with 'for sale' and 'wanted' cards in it (if you can remember those days!) In any event, the price is the one that is required to balance buyers and sellers.

The market's view is possibly that Carlyle may have to increase their offer even in the absence of a competing bid.

Since the announcement ~85M shares have been traded, representing over 14% of the issue. If we assume that maybe half of these have traded via an intermediary (hence will show as two trades), that will still amount to nearly 10%. These are more likely to be voted than those (a very large number) held by nominees and having 'overpaid' they won't be in favour, unless they're 'friendly' shares and that would be open to legality questions.... And there is likley two weeks to go before we see the scheme documents.

Of course, it may go through, but it's not exactly cut and dried!

[dp1umb] 04/6/2021 17:38

Jim , probably because the offer is well below brokers 12 month forecasts.
Most analysts forecasting 180p a share.

[jimboyce] 04/6/2021 16:40

Still do not understand why the market makers have kept the price above the offer, even immediately after the offer was made. How could they know then that there may be additional offers coming in, to keep the price over the offer price.Not complaining, but..........

[mveleba] 03/6/2021 20:39

You keep on saying the same thing. I was in Codemasters last year. Counter bid came literally in the last week the first bid was to become effective. The second bid became the winning bid. Agreed agreement by the board that holds less than 1 percent of the company is pretty much pointless. Perhaps nothing will happen but equally your argument does not hold either. Let's just wait and see. This is only to become effective in July. I have not seen the full timetable of the scheme yet. I am hopeful is all i will say.

[davr0s] 03/6/2021 20:22

You'll also have to change your name too presumably lol

[vecturaking] 03/6/2021 20:17

I must add

I am truly disappointed with the boards
Agreement of this agreed bid

As I truly believe Vectura will be valued a lot higher in a year or two
As you can check my previous posts


But sadly it’s goodbye to all shareholders

[davr0s] 03/6/2021 20:17

But if another offer comes in at say 20% higher then the big shareholders are not going to say, nah we've done a deal with the directors, they'll be under pressure to take the higher figure. It's not the likely outcome IMO but I'll probably hold for another week as downside is probably fairly small

[aceuk] 03/6/2021 20:13

Lots of directors have agreed deals only to change their minds shortly after - often as not tactics

[vecturaking] 03/6/2021 20:11

The deals Already been agreed

You are not going to get anything more then what’s on the table

I prefer for a Statement of some sort
From anyone to reject this

But it’s not going to happen

As I have said many times

GameOver

[boadicea] 03/6/2021 19:56

VK - "I can not hear anyone rejecting this".

I cannot hear anyone accepting this - apart from the BoD.

The current share price premium denotes the market's odds on another ~10% - not necessarily from a competitor, it could be a sweetener from Carlyle.

[kenmitch] 03/6/2021 19:48

PUGUGLY.

That 7p premium doesn’t mean if a new bid/bidder it will only be at 7p higher price. It’s simply the market hinting at the possibility of a higher bid. And if it comes it’s likely to be more than just another 7p. It’s looking hopeful that there could be a higher bid based just on the current share price reaction. But for now it’s guesswork.