Willow67
28 Mar 2015
Re: Maths behind the rights issue explai... The value of the rights should be the TERP minus the rights price; currently the TERP is ((1 * 540p) + (5/3 * 166)) / (1 + 5/3) = 306p, so the rights are worth 140p, up from 95p when the rights was announced and the share price was 420p. Someone please correct me if my maths is wrong.
Centre Court
27 Mar 2015
Re: Maths behind the rights issue explained Very useful link. I have been trying to get into the mathematics to see how I can optimise my approach but still my figures do not balance. I think I am going wrong in my estimate of the rights value when they start trading. I am coming up with a different value from the one I was using by looking at it 'simplistically' as follows:Say I hold 7000 shares resulting in 11666 rights. The value of the shares at today's closing price of 540p (approx.) will mean the holding has a present value of £38000. Based on the theoretical ex-rights price of 260p means the value of the holding will be diluted to £18200. Since the rights issue should be neutral, this means the value of the 11666 rights should be 38000-18200 = £19800, giving a market value for each right of 170p or thereabouts. Does this make sense.
Willow67
27 Mar 2015
Re: AUTUMN The same thought had crossed my mind though frankly I don't listen to her/him/it anyway.
PacificSailor
26 Mar 2015
Re: AUTUMN Where's Lambrini? ...... She had a 250p target for this.
PacificSailor
26 Mar 2015
Re: So who's going to take up their righ... I haven't sold up .... Just treading water until there's some solid news, rather than just gossip and more direct rubbishing of the companies that you get on other sites. I prefer a quiet forum .... perhaps that infers that we have a little more grey matter on average than the other forums.
IOMINVESTCOM
26 Mar 2015
Maths behind the rights issue explained [link]
Willow67
26 Mar 2015
Re: So who's going to take up their righ... Trying to get my head around this given the mixture of currencies they have quoted in the acquisition and financing.So Skrill is being bought for £800m ($1.2b). The acquisition terms are £520m ($780m) in cash and 37m new Opay shares. The cash element comes from available cash (they have about £30m), a new £370m (€500m) debt facility and a £450m 5 for 3 rights issue at £1.66 (that stacks up as they had 163m shares issued at y/e so that means they are issuing 271m at £1.66, equivalent to the £450m). Based on the £4.20 price before the announcement that's a theoretical ex rights price of £2.60 (as Pendil says). Then another 37m shares are issued to Sentinel (the current Skrill owners), taking total Opay shares to 471m and Sentinel's stake in the enlarged group to the 7.9% they quote (37/471), which they are locked in on for 6 months. That's a bit of dilution for us but it's small. It's a chunky rights issue for sure but to me the pricing looks really attractive.They key to the transaction clearly is whether they can extract the cost synergies from the combined group they think they can - that is game changing in bringing the effective EBITDA multiple they are paying from 13.5 to 9.3 and if so it totally makes sense to use their shares to part fund this - and whether the larger, more diversified ex-AIM group merits a re-rating.To me the market has given its answer pretty clearly, pushing the shares up from a 2014 EBITDA multiple of 14.1 to around 18. If combined EBITDA continues to grow organically from the $175m area and that multiple holds, it's pretty exciting for the share price.Other than what it does to the shares short-term, a re-rating is also exciting to me as it allows them the ability to use their shares to fund further acquisitions in the future. They have demonstrated they can find plenty of opportunities and at prices which make sense. It also gets them away from AIM and all the rubbish that goes on there.
Willow67
26 Mar 2015
Re: Will Optimal Payments Plc Deal To Bu... Yikes what a mess.
Willow67
26 Mar 2015
Re: So who's going to take up their righ... I'm currently planning to take up my rights and keep all my old shares (if I can afford it) but it will depend on how the shares perform. The fact the bb is so quiet suggests to me a lot of people have sold out during the decline and have missed this event
charlie51
25 Mar 2015
Re: Will Optimal Payments Plc Deal To Bu... And bang on cue - look at MONI today....
kemicalz13
25 Mar 2015
Re: So who's going to take up their righ... I plan to too...Anyone considering selling their initial holding on the 17th and leaving themselves with just their rights shares?
jh2704
25 Mar 2015
Re: So who's going to take up their rights i... absolutely yes
charlie51
25 Mar 2015
Re: So who's going to take up their rights i... Hello Willow. Currently - I intend to. Hope all is well with you.C51
Willow67
25 Mar 2015
So who's going to take up their rights in full? .
Willow67
25 Mar 2015
So who's going to take up their rights in full? .
