Capita to offload Parking Eye?

Castle

IamEmanresu wrote: »

They are raising cash too which poses the question

1. If PE are generating shed loads of cash why sell.

2. If PE are not generating shed loads of cash why not.

3. Are PE are generating shed loads of cash now but may not be in the future?

4. If the answer to 3 is yes and PE are f****d what does that say about the others - and their legal teams.

Capita are looking to raise £700million from shareholders; whlst PE was bought for £57million in 2013.-
https://www.theguardian.com/business/live/2018/jan/31/capita-profit-warning-shares-tumble-markets-nervous-eurozone-inflation-federal-reserve-business-live

pappa_golf

I heard that ratchael was using all her £50 fees over the years to do a buyout


and an update

System

Capita are looking to raise £700million from shareholders; whlst PE was bought for £57million in 2013.

And your point is?

Shareholders expect a dividend so there is a cost of that capital plus the financing of the sale of any asset (eye watering if you have ever been there). You can save a lot by keeping cash generators and getting rid of those assets that eat cash.

Profit is nothing if you are short of cash which appears to be the issue here.

ffacoffipawb

Castle wrote: »

Capita are looking to raise £700million from shareholders; whlst PE was bought for £57million in 2013.-
https://www.theguardian.com/business/live/2018/jan/31/capita-profit-warning-shares-tumble-markets-nervous-eurozone-inflation-federal-reserve-business-live

Their market cap fell by over £700 million today. Will have to be a very dilutive rights issue now to raise that much, maybe 2 for 1 at 100p. Given the share price drop, would need to be very heavily discounted.

Shame. Not.

unforeseen

IamEmanresu wrote: »

And your point is?

Shareholders expect a dividend so there is a cost of that capital plus the financing of the sale of any asset (eye watering if you have ever been there). You can save a lot by keeping cash generators and getting rid of those assets that eat cash.

Profit is nothing if you are short of cash which appears to be the issue here.

Capita shareholders are going to be unhappy because they have announced that dividends are not going to be paid

pappa_golf

several people I have spoken to today who had shares were suprised by the news that they were selling PE , they did not know crapita owned PE , , they have now bailed out due to having or family members being screwed over by PE

Castle

IamEmanresu wrote: »

And your point is?

Shareholders expect a dividend so there is a cost of that capital plus the financing of the sale of any asset (eye watering if you have ever been there). You can save a lot by keeping cash generators and getting rid of those assets that eat cash.

Profit is nothing if you are short of cash which appears to be the issue here.

The point is, selling Parking Eye is "small fry", even if they get their £57million back. (Dividends of £12million were paid out in 2016 by Parking Eye, but £nil in 2015).

Ivor_Pecheque

I'm trying to organise a "crowdfunding" page on some of the Newquay social media pages.


I was hoping to raise some money for the PE Xmas do, but so far I haven't had many takers.

Perhaps it's a glitch with my computer.

pappa_golf

was that xmas leaving do?

DoaM

Did you ever cash that cheque, Ivor?