Powerflute everyone in favour say aye!!!!?

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27th Jul '16 by Andrew niven

14 comments 7854 reads

On the surface this looks a great company.
Can anyone explain to me why the shares have dropped badly over the past six months

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About the Author

Andrew Niven

Premium Member

14 comments

jjis

27th Jul '16

Worries about a global slow down.
Insider sold 8.4% stake in March 2016 at 80p with a lock up for only 6 months (further overhang?)
Miton have reduced their stake since then.
More sellers than buyers as it is a foreign stock listed on AIM?
Agree all this has left it looking cheap to bigger peers - see
http://www.stockopedia.com/compare/?tickers=LON%3APOWR%2C+LON%3ASMDS%2C+LON%3AMNDI%2C+
Hope this helps?

Soundbuy

27th Jul '16

Smurfit Kappa GrpPLC Half-year Report this am.

http://www.investegate.co.uk/smurfit-kappa-grpplc/bus/half-year-report/20160727070000Z9455/

Bit of a goliath compared to Powerflute....

Not sure if there's any info within/any read across?

Carey Blunt

28th Jul '16

This has been on my watchlist for a while. Feels like its probably bottomed out but that may just be me being optimistic. Good Stockrank.

Andrew niven

28th Jul '16

Just bought some today so here's hoping !!!

Blissgull

15th Sep '16

Nice timing Andrew Niven!

Investor & Trader

15th Sep '16

Not sure what happens now?
I bought the share not so long ago and it has gone up 20% today. Can I expect more than this? will it be suspended etc?

Any advice would help I have not been in the situation of a offer/purchase before.

Thanks
Gary

whitmad

15th Sep '16

30% witholding tax on dividends from Finland don't help. In theory I believe you can claim this back by filling in the forms and sending to the Finnish tax authorities. Anyone succeeded in that?

Blissgull

15th Sep '16

gpacker,
The offer is very unlikely to be increased. Bidco have received irrevocable undertaking to accept the offer in respect of 51% of Poweflute shares so in effect it is a done deal. Occasionally there is a rival offer made by another bidder and a bidding war can develop (very good for shareholders) but that seems unlikely here.

The terms of the offer allow for Bidco to apply for delisting of Powerflute shares if the offer is declared unconditional - i.e. they receive acceptances above a certain level.

Basically your options are to wait a few months and receive the full 90p (most brokers will not make any charge for this but a few charge for corporate actions) or sell in the market in the usual way and receive a slightly lower price and pay brokers commissions but get your money sooner.

jjis

15th Sep '16

Wouldn't expect more as it's a recommended deal & Bidco has either agreed to acquire pursuant to the Smurfit Undertakings (founding Chariman) or received irrevocable undertakings to accept, or procure the acceptance of, the Offer in respect of, in aggregate, 152,034,507 Powerflute Shares (inclusive of Powerflute Shares underlying Powerflute Options), representing approximately 51.0 per cent. of the entire issued share capital of Powerflute (assuming exercise of all outstanding Powerflute Options and excluding treasury shares). So you should get 90p if you accept & it goes through - which it looks like it will unless there's a regulatory glitch which could take 60 to 90 days as they are abiding by City Takeover rules even though they are not bound by them in this case. Or sell in market for a little less & move on. Hope this helps.

Investor & Trader

15th Sep '16

thank for your help guys, much appreciated..

Whitbyview

15th Sep '16

Well it's better than no premium but if I were still a shareholder I'd be pretty disappointed. It may be a 20% premium on yesterday's price but it is less than the 1 year maximum and less than 10% up on the price only last week (when it reached 83p with no talk of a take over). Has the world for this company really deteriorated so much over the last week? Maybe someone else will bid - you never know.

Investor & Trader

16th Sep '16

True, but those of us that bought last week are pretty happy :-)

Carey Blunt

17th Sep '16

and a lesson learned by me.....having concluded that I liked it and that it had probably bottomed out I completely failed to buy any and of course the SP was all upwards from that point onwards. Doh! :-)

MGerard

20th Sep '16

I think this is worth way more than 90

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Powerflute everyone in favour say aye!!!!?

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About the Author

Andrew Niven

14 comments

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