Once 90% by value of the shares subject to an offer and associated voting rights are acquired.
Alternatively, 100% of a target company's share capital is acquired by a bidder under a scheme of arrangement approved by a majority in number, representing 75% in value of each class, of shareholders attending and voting at the relevant shareholder meeting.
Basically (if I understand it) your shares get automatically bought. Similar thing happened to me with essar -
I'm considering buying some shares in ISG. I've read the latest RNS concerning acceptance by more than 75% and notice of cancellation of listing, also the veiled threat of what might befall any shareholder that doesn't accept the offer. But what I'm wondering is that if I were buy into what is about to become an unlisted private company, is there a compulsory acquisition once the bidder's interest exceeds a certain percentage and if that percentage is not reached how likely is it that C would restructure the company to avoid paying divis to outside shareholders.
Assuming C has plans for ISG to tidy up up the accounts, etc and extract the potential that the ISG board reasoned exists, I'd have thought it worth the risk of being there for the ride.
Run a cash flow & you'll see what's going on. Based on city consensus forecasts 2016 Cathexis are offering (at £1-43) projected net cash on the balance sheet. Ie they get the business for free. It has been obvious for a while that ISG has been priced at a negative EV (capitalisation minus net cash/debt). If Catheexis pull this off they can't lose! Depends how desperate everyone else is to exit! A classic grahamite type buy - you don't see many of these nowadays.
So there it is, but how come it took them so long to come up with the obvious?
The top team can't all have been sunning themselves in the Caribbean, or stuck on the M25, especially when Cathexis had indicated their increased interest. I'd have thought that an initial response would have been drafted ready to fly under those circumstances, but WDIK.
So this weekend they'll be putting flesh on the bones so that they'll be ready to tell us all the detail that was missing from the recent update - once the offer document slips through their letterbox.
In any case, they're not going to let this go for 143p; though I'm still surprised that the sp hasn't ticked up further.
seems about the right price to me...wouldn't be surprised to see a lot of kitchen-sinking once the bid goes through as well...if you take out construction, the refit business is between half and two thirds of the way through the current boom cycle IMHO before the inevitable downturn, so it's hard to see why there would be lots of other suitors waiting in the wings. Just my 2p of course...
"No statement from management to the contrary." Give them time, m8; it wouldn't have looked very good if their response had come out at the same time, would it.
ISG shouldn't take long to come up with a response: Cathexis didn't build-up a near 30% shareholding just as a long term investment, and the latest increase in their holding would have set the ISG management searching for a good news story to tell.
Bit disappointed that the sp hasn't gone above 143, as that would have indicated the obvious. Still, give it a bit more time.
Not an easy call, especially with so much red on the screens. Bought a few, as unlikely to get in at absolute bottom. I'm sure the management know they are being judged, with farewells in order soon if nothing changes and will be moving everything within its powers to resolve the situation. I see Cathexis has increased its holding to 29%, after taking the majority of its holding in the last placing. Good biz, trying to escape an era of low margin construction deals, which could most probably do with some new top management or taken out - in Cathexis 's court I guess.
You just have to pick your entry point and dive in, Spankeroo..mine is 120 but the closer we get there the more I keep getting second thoughts, so maybe I'll hold out until it hits double figures (I doubt that but whonose?)..
Picking bottoms can be a messy biz at the best of times, but I don't think you are too far off with your assumptions. From what I can gather of the £5m shortfall,between £1-1.5m relates to the old legacy stuff and the rest is deferrals/timing issues, which may correct by the YE June 2016. Worst case on the info we have £11m PBT, thus at current price 7.5x PE, with a good yield. Think share price wise over done, but a lot of people were expecting the worst was over, so a lot of bull positions unwinding. Must say very tempting
if there is another shock to come it can only be the tail end of this unhappy twelve months ..making a third provision for another huge sum would smack of being evasive so i think the worst is over. i remember three or four years ago almost every company was cutting throats to keep going so it maybe they did not do so bad. i will hang on
I'm inclined to agree but it's not without risk...profit warnings can come in threes like London buses, a third down-turn would add proven management incompetence to the existing less than heady stuff already going on in their construction division, and lead to a permanent re-rating IMO...I'll probably buy some though!
this hurts because it wasnt expected. 44% profit a couple of months ago is now an 8%loss.reading through the report i think i will hang on in and have another look in twelve months. its still a decent company with good prospects.have a good christmas
Interesting question trivaskus. I too have jumped in and out twice and although not perfectly timed (are they ever) the trades have left me up. I am very tempted to buy and hold through to September/October when the good half of the year will kick in.
Phew!! sold on the 12th for 205p (17% profit) sold my first holding for 105p per share profit and bought back in (to early) at 175p) proving the old maxim ' buy when others are selling and sell when others are buying' can sometimes make you rich! - Will it work for a 3rd. time?
Very poor form given the last trading statement set of comments.....does make you consider management visibility. Not impressed!!!
though I think I am right in saying there is 106p of net cash in the business and even with the £5m loss in construction expected EPS of 20p and an implied dividend of 7.6p (5.5%) so price here looks a bit odd (presumably sentiment rather than value driven).
I might be tempted to take the contrarian view and buy some........well, maybe......
Nice one - I was just looking at this after reading the ii article. I get 136 so I'd be interested in knowing how you got 106. I must have missed something. Also, where are you getting the chart from? The usual source only goes back to 2009.
" Plagued by challenges, LSE:ISG:ISG's construction business has tripped up the group for a second time this year. Optimism that problems which surfaced back in February had been resolved was clearly misplaced, and shares in the accident-prone ..."
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