Victoria Share Discussion Threads

[napoleon 14th] 02/11/2020 14:38

Not surprised at the drop.

[davebowler] 28/10/2020 16:23

N Singer
Victoria plc has recently announced a proposed Investment of up to £175 million & £43.75 million Ordinary Share Purchase by Koch Equity Development, in addition to a £29.91 million Share Buy-Back by Victoria.

The Company has signed a commitment letter with KED Victoria Investments, LLC (“KED”), an affiliate of Koch Equity Development, LLC (“Koch Equity Development”), a wholly owned subsidiary of Koch Industries, Inc. (“Koch Industries”). KED has committed to invest up to £175 million by way of convertible preferred shares to be issued by Victoria, to support the Company’s continued growth.

The events of the last few months have revealed some potentially exceptional acquisition possibilities in Europe and the UK to grow Victoria substantially and the purpose of raising the £175 million of new preferred equity capital is to enable Victoria to move quickly and decisively to capitalise on these potential opportunities.

£29.91 million Share Buy-Back by Victoria

The Board of Victoria also confirmed that, in conjunction with the proposed Preferred Equity investment by KED, the Company has now entered into a conditional agreement to purchase off-market 8,546,095 of its ordinary shares, representing 6.82% of the Company’s issued share capital of the Company, at £3.50 per share.

The Company Buy-Back will be financed from the Company’s existing cash resources and those shares will be transferred into treasury.

£43.75 million Ordinary Share purchase by KED

The Company further announces that a separate conditional agreement has been entered into between KED and Invesco for KED to purchase off-market 12,500,000 ordinary shares in the Company from Invesco, representing 9.97 % of the Company’s the issued ordinary share capital, also at a price of £3.50 per ordinary share (the “KED Purchase”).

This KED Purchase of £43.75 million in ordinary shares is in addition to the up to £175 million preferred share investment.

Spruce House Partnership LLC Ordinary Shares purchase

The Company further announces that a separate conditional agreement has been entered into between Spruce House Partnership LLC, an existing 14.8% shareholder of Victoria, and Invesco to purchase off-market 3,600,000 ordinary shares (being 2.87% of the issued share capital of the Company) from Invesco at £3.50 per share (the “Spruce House Purchase”).

The total shares proposed to be acquired pursuant to Company Buyback, the KED Purchase, and the Spruce House Purchase being 19.65% of the issued share capital of the Company, represent all of ordinary shares in the Company held by funds managed by Invesco.

Victoria Executive Chairman, Geoff Wilding, said:

“Victoria̵7;s business model has proven resilient this year during the most difficult trading conditions in living memory. So, the time has now come to again focus on growth and the capital provided by Koch will enable us to deliver significant value creation while maintaining stable and secure debt leverage ratios. I am delighted to bring the capital, resources, and deep industrial expertise of the largest privately held company in the United States to Victoria’s next phase of growth as we execute on the exceptional organic growth and acquisition opportunity ahead.”

N+1 Singer is acting as Nominated Adviser and Joint Broker to Victoria plc.

About Victoria plc

Established in 1895 and listed since 1963 and on AIM since 2013, Victoria plc is an international manufacturer and distributor of innovative flooring products. The Group, which is headquartered in Kidderminster, UK, designs, manufactures and distributes a range of carpet, flooring underlay, ceramic tiles, LVT (luxury vinyl tile), artificial grass and flooring accessories.

Victoria has operations in the UK, Spain, Italy, Belgium, the Netherlands and Australia and employs approximately 3,400 people across more than 20 sites. Victoria is the UK’s largest carpet manufacturer and the second largest in Australia, as well as the largest manufacturer of underlay in both regions.

The Group’s strategy is designed to create value for its shareholders and is focused on consistently increasing earnings and cash flow per share via acquisitions and sustainable organic growth.

Ticker: VCP
Market Cap: £667.1 million*
Website: Click here

*As at 28/10/2020

For more in

[longterm56] 27/10/2020 13:34

I agree that it seems a bit contradictory to raise money and also buy some shares back in but the way I see this is simply that the Directors believe that at £3.50 the shares were way below fair value so bought them. They have the option like we do as shareholders of selling them back into the market at a higher price. They seem to have made a good choice with a 50% uplift. Invesco might be kicking themselves for selling so cheap

[castleford tiger] 23/10/2020 13:43

Investors champion have never got the story here.

They have debt because of the quality business that they bought!

The shares will break £5.00 very soon in my opinion

tiger

[1nf3rn0] 23/10/2020 12:53

The actions do seem a little contradictory, although the market clearly likes it. For me this is a good point to take some off the table. Added at 180p and a couple of times in the 200's earlier in the year, and these are now in a healthy profit which I don't want to risk being eroded. Will leave my pre-pandemic holding to run and see how this all plays out. Tough one to call after such a large increase already.

[energeticbacker] 23/10/2020 12:08

Featured in today's Investor's Champion update:

We struggle to understand why on the one hand this heavily indebted business needs new funding to support acquisitions, but on the other intends to use cash to buy back shares and reduce its ordinary share count.

[bouleversee] 23/10/2020 12:02

Especially since they are paying 9.35% to Koch on the preferred shares!

[1nf3rn0] 23/10/2020 10:33

They've always been clear in annual reports that they view dividend payments as bad value to shareholders as they believe that they can generate better returns by redeploying the cash into the business.Personally I think a small dividend, even 1% would be better, as they'd still get to recycle the majority of their free cash flow whilst attracting new institutional/private investors who require some amount of income.

[bouleversee] 23/10/2020 10:05

If they have so much cash, why the heck don't they pay shareholders a dividend? That might send the share price up a bit as well. Trying to get my brain round the full implications of this.

[molatovkid] 23/10/2020 07:41

Pre-cursor to a full takeover?

[william127] 22/10/2020 21:25

Interesting deal released on RNS tonight. Victoria PLC('Victoria', the 'Company', or the 'Group') Proposed £175 million Preferred Share investment and Conditional Ordinary Share purchase by an affiliate of Koch Equity Development, LLCandConditional Ordinary Share Buyback by the Company

[distortedfire] 17/10/2020 13:28

They plan to increase ceramic tiles production by +20% next year. And they will do it through aquisitions in Spain, they will probably buy Équipe Ceramicas which is similar to Keraben in production capacity.

[1nf3rn0] 16/10/2020 16:20

Incredible rise, up over 50% in the last two weeks. Jul to Sep qtr trading must have been very good. Remember in June they were above pre-covid budget.

[molatovkid] 13/10/2020 14:37

The directors are loading up in CEY too....

[castleford tiger] 09/10/2020 18:01

MFX is crazy trading at 1/3rd of nav.

You not in MPAC or TND?

[rotrader] 09/10/2020 17:32

Still waiting for MFX to break out.Loading up on CEY in my SIPP after the recent overdone drop

[rotrader] 09/10/2020 17:23

Let's hope so, are you talking about the UK or the whole group.

[castleford tiger] 09/10/2020 17:11

Still plenty to go for here.
They are very busy I am hearing

tiger

[hatfullofsky] 10/9/2020 07:10

A good not great update, lacking specifics, resilient trading as opposed to strong trading previously. I can only pressume we are not at the levels we were in July

All markets have recovered.

[lastoneout] 10/9/2020 00:05

Yes also expecting good news for July and Aug trading. And hopefully the end of impairments come the interims.

[sharemonkeymagic] 09/9/2020 21:46

If you go and ask in any carpet store how business is going you get the same answer, booming! It seems that loads of people have been decorating through lock down and are now buying carpets to finish off their rooms. Also lots of people spending their holiday money on their homes instead. I'm told it as busy as the normal October/November period. I'm expecting a great trading update when the next one is issued.

[bouleversee] 09/9/2020 16:47

I resisted the temptation which means they will go up. Good luck!

[hatfullofsky] 09/9/2020 16:30

Added in anticipation of the update tomorrow.Talking to myself again