Waterlogic Share Discussion Threads

[kenatbabken] 30/1/2008 18:06

Not very clever paying 10% more than valuation with commercial property values
falling but it is a related party transaction with the seller being Michael
Lawrence who owns 59% of WTL

[tyranosaurus] 30/1/2008 17:49

They could buy my house for storage.

Its valued at £200k but it must be worth £250k to them.

Are the directors brain dead.
The company is only worth £3.3m after all.

[colonel a] 28/1/2008 17:22

Or dreaming.
But I don't accept that a full listing offers much protection against the less honorable of the business comunity.
There are plenty of examples of very dubious practice in the big boys market too.

[corrientes] 28/1/2008 10:41

You can bet your bottom dollar that whilst deteriorating market conditions have no effect on the unnecessarily high freehold purchase price being paid by the company, it will of course have a negative effect on the buyout price. Not so LOL.

[corrientes] 28/1/2008 10:07

You must be joking.

[colonel a] 28/1/2008 09:45

This will give them the cash to take the company private.
Lets see if they stick to their original offer ?

[bletherer] 28/1/2008 08:43

Yup, that was the last straw for me. Only a relatively small sum involved in the difference between the two valuations but I have no confidence left in the management and with an AIM company that's a big problem. I've sold up and will look to find better use for the cash elsewhere - probably not on AIM, though.

[corrientes] 27/1/2008 21:54

Down the pan - thank goodness only a small holding.

They value a proposed freehold property purchase at £4.5m in July. Because of 'changes in the investment climate' the 'independent' directors ask the valuers update their valuation, which is now £4.15m. Despite the turmoil in the commercial property market,they seek to justify ignoring the revised valuation with vague claptrap and will go ahead at £4.5m.Makes you wonder what other tricks they get up to, but it's dead easy on AIM.

[corrientes] 06/12/2007 16:00

Looks like its going to be a diabolical outcome (as usual for small AIM stocks)

[ptolemy] 22/11/2007 14:42

Well, now the third party has walked away we're in a more vulnerable position. Woburn has returned to the table but can now make a lower offer than previously (why would they hold to 65p given one suitor has walked away and the genral market conditions for UK economy look to be deteriorating?)

I still beleive the key here are the non-execs (do they have an equity stake?) and the major shareholders, some of whom bought buckloads at about 63p.

[mongrels1] 12/11/2007 08:44

I think this has become quite interesting.

Managemnet's suggested take out price at 0.65p has hopefully set the basepoint. Surely any offer must be higher than this as it will be very hard to turn a new offer down. In other words if a new offer is made at 0.70p the management can hardly say that it is derisory as their previous punt at the company value was 0.65p.

If you a marry this point with the fact that the management has spent a long time building this company they will want to extract top dollar. I'm guessing, but these do not seem to be fat cat execs, but guys who have a (one off?) chance to make some really good money. In other words if an offer was to come in at say 0.70p will they just sit back and accept it, or might they unpostpone their own bid talks.

I appreciate that all this goes to dust if the current "bidder" pulls out or if any funnies are found during "due dilligence".

Views very welcome, I appreciate that it is easy to look at things in a one sided way when holding.

Anyone seen any press on this at all?

[corrientes] 10/11/2007 20:48

With financiers battening down the hatches, I would have thought a management buyout would be much less likely now. A foreign player with ample liquid funds, should be able to gobble up this company.

[knowsleyman] 10/11/2007 11:06

I think it will be 6-8 weeks before we hear anything further.

I do not understand the drop in share price following the announcement. Unless I have got things badly wrong the non-execs are looking at a price above 65p.

[corrientes] 09/11/2007 13:59

In this market ?

[bletherer] 09/11/2007 13:15

Er...in this case why has the share price not reacted?

[ptolemy] 09/11/2007 12:59

Good to see the Execs coming out and saying they're waiting on the sidelines. Sounds as though the 3rd party offer could be considerably better.

[grahamburn] 08/11/2007 17:46

1)
"and to be issued shares" probably refers to share options etc.

2)
Only the Independent Directors would be involved in discussions with the third party or, for that matter, the executive directors who have indicated a bid (which is made quite clear in the RNS.

The end result though is, as you point out, that a higher bid is probably in the offing. The one query or indeed problem has to be that the executive directors hold 63% of the company, so they would not only have to accept any third party bid but also, probably, still be prepared to work for the new controlling company. I would hazard a guess, therefore, that any takeover from a third party would be in the shares of that third party so that the current executive directors (who by and large have lived and breathed Waterline) continue to have a significant equity interest in its success. But, hopefully, there would be a requirement for there to be a cash alternative as well..... Though it's just possible that it would be all in cash if the third party could integrate Waterline totally into its business - and say goodbye to the current executive directors.

[ptolemy] 08/11/2007 16:47

If the Directors via Woburn offered 65p it is logical that this 3rd party has made a better offer. The strategic review is complete and so Mazars have given their conclusions to the directors which, presumably, told them that the company is worth more than 65p. It should be difficult for the Directors to ignore an independent review.

Of course, if the 3rd party falls through the Directors can return with a lower offer than previously.

My one question mark about the Press Release is the phrase "and to be issued shares". I don't know what this means.

One way or another it looks as though our days as shareholders are limited.

[mongrels1] 08/11/2007 16:35

Thoughts on the RNS anyone?

Surely if the directors have "postponed" their own talks then this has to be very good news... or am I missing something?

[knowsleyman] 07/11/2007 20:18

Mongrels1

It is regretable that I have learned over a good number of years that directors of tiny companies are not able to even lie in bed straight, or am I just an old sceptic.

Been out most of the day and come back to find this big drop in share price and, for Waterline, heavy turnover of shares.

What the hell has prompted this I ask.

[mongrels1] 07/11/2007 12:05

No idea.

I can confirm knowsleyman's comment re mazars. Maggie told me last monday that it would be two weeks maximum until an update.

If i believe what the management and non-execs told me the previous week then I'm quite happy. If they are bare faced liars then that's a different matter all together.

As ever some buys are showing as sells today.

[corrientes] 07/11/2007 11:06

What gives ?

[grahamburn] 30/10/2007 15:48

Now THAT, knowsleyman, is much more interesting and relevant, because the directors (or at least the executive directors) are currently wearing two hats: one running the business, and one potentially taking over that very business.