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Esure capital return

Analysing companies' finances and value from their financial statements using ratios and formulae
Paultry
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Esure capital return

#181753

Postby Paultry » November 20th, 2018, 6:00 pm

Do any of you know when Esure are scheduled to become private and return the cash proceedings to share holders?

I ask because if it is not imminent I may just sell the shares.

Paul

Gengulphus
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Re: Esure capital return

#181957

Postby Gengulphus » November 21st, 2018, 3:32 pm

Paultry wrote:Do any of you know when Esure are scheduled to become private and return the cash proceedings to share holders?

I'd describe it instead as a cash takeover, but that makes no essential difference to your question. The expected timetable was given in the Scheme Document (https://www.esuregroup.com/~/media/File ... cument.pdf - will very likely require acceptance of a disclaimer to access), but it's all relative to the date of the court hearing to approve the scheme, referred to as day D and more fully defined as "A date expected to be not less than 10 Business Days after the satisfaction of regulatory and merger control clearances which is expected to be in the fourth quarter of 2018, subject to regulatory and merger control clearances". A quick (*) skim through the company's recent RNSes says that unless I've missed something, the last news on the progress of the takeover was https://www.investegate.co.uk/esure-gro ... 35128944C/ on October 3rd, and nothing more appears to have been known then about the timetable:

Effective Date and Timetable

The expected timetable of principal events for the implementation of the Scheme remains as set out on page 10 of the Scheme Document. If any of the dates and/or times in the expected timetable change, the revised dates and/or times will be notified by announcement through a Regulatory Information Service.

The Scheme remains subject to the satisfaction or (where applicable) waiver of the remaining Conditions set out in the Scheme Document, including the Court sanctioning the Scheme at the Court Hearing, which is expected to take place in the fourth quarter of 2018.

I believe one can normally expect regulatory and merger control clearances to be announced when they are received, as important news about progress of the takeover, and (again unless I've missed something) that hasn't happened yet. So I think the court hearing is still expected to be more than 10 business days away (i.e. at least 2 weeks). Then the Effective Date of the scheme is expected to be "By 8:00 a.m. on D+2 Business Days", and payment is expected "within 14 days of the Effective Date". That "within 14 days" is standard, and it's sometimes less - I think I've known payment for similar schemes occur as early as a week after their effective dates. But equally, I've not infrequently known it take the full two weeks...

Putting that all together, it looks to me as if payment is a bare minimum of a bit over 3 weeks away, and quite a lot more than that is very likely. At the opposite extreme, the Long Stop Date of 14 February 2019 makes it very unlikely that it will be delayed beyond about the end of February (though not impossible, as its full definition says "or such later date as may be agreed in writing by Bidco and esure (with the Panel’s consent and as the Court may approve (if such approval(s) are required))".

Those aren't very tight limits, I know, but depending on what you mean by "imminent" they might be good enough to tell you what you want to know. And I think they are the most that is knowable at present from publicly-available information.

(*) Well, as quick as reasonably possible: companies being taken over produce far more RNSes than usual, most of which are about what significant shareholders are doing rather than anything much about the progress of the takeover, and esure is no exception! :-(

Gengulphus

Paultry
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Re: Esure capital return

#182285

Postby Paultry » November 22nd, 2018, 12:34 pm

Gengulphus

Thank you for a very comprehensive reply.

I have two small shareholdings from the IPO and my thoughts were to leave them until the cash appears in the account, thus avoiding a dealing fee.

However, the share price is not going to change and there will be no more dividends so it's like cash in the bank going nowhere.

I'll wait a week or so before I decide whether to sell. Thank you again, Paul

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Re: Esure capital return

#185533

Postby GoldRush » December 8th, 2018, 9:46 am

Court hearing is expected around 17th December 2018, so if all goes ahead as planned proceeds should be in accounts by 2nd Jan 2019.


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