Bowman
04 Dec 2014
Re: Acquisition The level of Director participation in the Placing is a bit disappointing. I had hoped that they might have subscribed for a slightly larger amount, which would have given a stronger indication to the market.The fact that Kettleborough's participation is the second largest possibly indicates that my initial view of his departure might have been a little off.The potential dilution of existing shareholders will depend on the true value of the acquisition. Hopefully the potential additional value will be realised and the SP can continue to move upwards. Previous acquisitions have been positive so we must hope that, after a transition period of settling the new elements into the Group, the Directors can achieve the hoped for growth.CSN is my largest holding by far, at 11.1% of my portfolio, so I will be watching fairly closely how things pan out.
Rick Mave
03 Dec 2014
WILL CHESNARA EVER COME BACK? This used to be a trustworthy share that behaved well as well as delivering a great divi. What's gone wrong? I have lost all trust in them and on the verge of giving up. Someone please help me to see straight.Thanks
Gooffy
03 Dec 2014
Not dilutive They are buying assets so its not dilutive the actual assets will rise.
Bowman
03 Dec 2014
Acquisition The market does not appear to be taking the proposed acquisition too well, although I suspect that it is more the sudden departure of Graham Kettleborough and the dilution of existing holders that are adding to the drag on the sp.No reason is given for Graham's departure and the timing appears to show that he might not agree fully with the new acquisition.An additional 10% of new shares is likely to hit the sp, so the new acquisition has some ground to make up for existing holders to appreciate any advantage from the move.
city watcher
03 Dec 2014
10% placing call They are proposing to buy another company in their field and hoping to raise 35m pre expensesso share price on offer to take up is going to be £3-04 - £3.10 depending on their costs. So not all bad. · Acquisition of the Waard Group, comprising three insurance companies and a servicing company, for a consideration of €67.8 million (£55.1 million)(1)· Estimated European Embedded Value ("EEV"
of the Waard Group as at 30 June 2014 is €92.0m; the consideration of €67.8(1) million represents a discount of 26.3% to EEV· The Waard Group businesses are strongly capitalised and the potential for phased, orderly capital extraction is a key attraction of the Acquisition· The Dutch market offers significant consolidation potential and the servicing company being acquired provides an operating platform to facilitate this· Placing of up to 11,504,765 new Ordinary Shares (the "Placing" to raise approximately £35 million before expenses to fund a proportion of the Acquisition, the balance of the consideration being provided by Chesnara's cash resources· The Acquisition and the Placing are expected to immediately enhance Chesnara's EEV per share, on completion of the Acquisition ("Completion", by approximately 2.2%
Aurelius
03 Dec 2014
RNS: good aquisition, fits the strategy well, nice price. Shares should be up in response.
