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OK, sounds like we'll both be holding then.
I do not think this is a forced sale per se. My understanding is this is a gradual sell-down with the distribution of proceeds to shareholders. This is different to a liquidation.
I agree with you insofar as assets will be sold at a discount. I expect this to be 10-20%. But given that today's share price is closer to 35% below NAV, I believe there is a sufficient margin of safety for people who buy shares today, to make an easy return on investment
A firesale (putting all the assets up for sale at once) usually results in values being reduced by anything from 10-25%. Buyers know the seller is a forced seller & make offers accordingly, depressing prices. This is the worst possible time to be selling alternative energy assets as the market is truly woeful just now and showing no signs of recovery any time soon.
Those are my thoughts, as requested. What are yours?
Why do you not believe sales will realise NAV?
Looks like we're destined for the recycle bin, unless a white knight steps up & makes an offer. Over at API they've had a bid from CREI and also interest from SHED but I'm not expecting anyone to rescue TENT. I'm not convinced a firesale will deliver the true NAV here so it's not a great picture IMHO. Who knows what's round the corner though if they can hang on long enough for interest rates to turn?
Another dividend announcement soon?
90p+………
Simon's Bargain Shares portfolio for 2024.
https://www.investorschronicle.co.uk/ideas/2024/02/08/bargain-shares-2024-take-advantage-of-this-lucrative-wind-down/
RNS
Could there be a bid or one in the making as the guy is planning ahead ??
Maybe a bid sooner rather than later?
It's a good return from here near 90p or a TO comes in at a premium to NAV
If its below that level Tent will just say shut the door behind you .
If we are get 90p as a capital return I wouldn't be averse to them liquidating/selling lots of cheap stocks around IMHO
Inspired by the Oak Bloke's substack I've emailed TENT with the following...
"In light of your announcement to dispose of assets and return capital to shareholders I would like to make the comment that I feel this is a premature reaction. The FED has given a strong indication that the US rates have peaked and will likely begin to fall during 2024. The response to this is likely to be that much of the cash currently on the sidelines will be reintroduced to the market in the near to medium term. Although the UK is not directly tied to the US market, and our inflation and interest rates is lagging the US, it is a fair bet to suggest that the UK markets will follow a similar trend.
I believe that by throwing in the towel now TENT will effectively find themselves selling at the bottom.
TENT has a very interesting portfolio of investments. Despite the recent 'pause' in clean energy investment support from the market I expect that hindsight will show this to be short-lived and simply a response to the over-enthusiastic clean energy investment landscape of 2019-2021 where results could clearly never match the hype. The clean energy market will likely be reenergised with the previously sidelined money needing to find a new home and, in conjunction, events such as COP and global governments offering support and insisting that it be the general direction of travel.
If it is not to late to do so, I would urge you to reconsider your decision to wind down the fund, and instead seek an adventurous new investment opportunity to excite the new money that will soon be waiting in the wings."
The proposed liquidation is discussed in the Oak Bloke's substack today.
https://theoakbloke.substack.com/p/a-tent-ative-vote?r=2y9nn3
He says it is premature and stupid (my words) and can be voted down.
So get voting.
The Fed just gave the US market reason to up the expectation of rate cuts next year resulting in a significant pop in stocks. The talk now is of a significant amount of money coming off the side-lines and back into the market. Maybe TENT should not be too hasty as they may once again be in a position to raise cash next year and continue with the original growth plans. It would be a shame to throw in the towel at exactly the wrong moment.
I also have BPCR RCOI.
BPCR is unlikely to be wound down due to its size but RCOI is another probable.
Very annoying.
90p if its wound down, less than 80p if its a jam today offer.
I will have to find something else to replace it that pays dividends as streamed interest.
No tax to pay on streamed interest.
Bugger
Sd235; you've gone from 90+ to 80ish in a coffee break?
That aside I totally agree with you, on the loss of another regular sustainable high dividend yielder, VSL, BGLF and seemingly far too many others.
I think we are aligned in appreciating, long term (sustainable, predictable) yield. And out angst at their dissapearence
I assume this will be wound down with a full nav return. That's not to say the nav won't change, in either direction. Specially as the loans may run for sometime.
An offer at the moment would probably be at less than 80p.
If an offer was around it would have already been made.
But you never know!
Pity would like to keep this as it pays a large amount of its dividend as interest.
As with VSL.
If someone wanted it, they would have put a bid in yesterday, at a 50% premium to SP and took it out at 82p. If someone wanted it, saw the value ,they would have put an approach in, irrespective of an up for sale sign...if it wasn't attractive enough at 82p, why would it suddenly make 90p+?
Wishful thinking. 80p maybe....
Could be more if a bid comes in and any buyer plays or thinks long term
Anyway decent upside from here regardless imho
90p is dreaming.
Today's rns comes from a point of weakness, not strength. And any buyer would incorporate that. If I was a buyer, at 80p I'd be gaining 10%, and give those exiting a 25% increase.
It's probably worth 90p, but to envision such is delusionary rather than realistic.
90p Must be the target to return money to holders here?
At least.
At the moment I would say the full nav minus costs are achievable.
They already have an offer on some of their debt at nav.