Bottom Line: Fenner's godfather
Friday 01 October 1993
ESIH is providing money and management, commodities that have been in short supply at Fenner for some time.
They are subscribing a minimum of pounds 1.9m for a 5 per cent stake in Fenner at a 5 per cent premium to the market price and underwriting, at no charge, one third of a pounds 17.4m, one-for- two rights issue, priced at a tight 6 per cent discount.
Fenner investors, shorn of dividends after an expected attributable loss of pounds 3.4m in the year to 31 August, decided that if ESIH was happy after a due diligence search then so were they. Fenner's share price responded with a 14p jump to 100p.
Fenner shares have ridden the switchback of two abortive takeover discussions in the past year and big changes at the top this summer. ESIH may sound too good to be true.
But if power transmission can be sold for pounds 20m or more, clearing out debt, the rest of Fenner could generate margins of 12 per cent on sales of pounds 100m and earnings of up to 10p.
A possible dividend of 2.5p in 1993/4 for a yield of 3 per cent forms a solid base for progress.
- 1 I was a Woman Against Feminism too
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 Students offered grants if they tweet pro-Israeli propaganda
- 4 The Tory donor whose firm is one of Britain’s biggest tax avoiders - with HMRC's blessing
- 5 John Barrowman praised for Commonwealth Games opening ceremony gay kiss
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned
Peaches Geldof: Her final day – and her fatal decision
Students offered grants if they tweet pro-Israeli propaganda
Israel-Gaza conflict: Israel may have committed war crimes, says UN human rights chief
Peaches Geldof inquest: Tragic final days of mother-of-two's life reveal she lied to husband about failed heroin tests
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
competitive: Progressive Recruitment: This really is a fantastic chance to joi...
£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...
£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...
Negotiable: Harrington Starr: Market Administrator (1st line Support, Bloomber...