View from City Road: Maddox holders require faith
Tuesday 05 January 1993
Maddox was created last February when Mr Biermann reversed two cables groups, Cables & Flexibles in the UK and Seacoast in the US, into a quoted shell, Pathfinders Group. In August it raised pounds 16.5m in a placing and bought the computer group Wakebourne for pounds 13.5m. Now Maddox, which is interested in buying more computer businesses, thinks it is too small to develop the cable companies and is selling them in a buyout for dollars 29.6m ( pounds 19.6m).
The deal is conditional on the buyers obtaining bank finance, and a large part of the consideration is in unusual financial instruments. There is pounds 5.36m of irredeemable preference shares, dollars 6m of perpetual preferred stock and dollars 7.2m of junior redeemable preferred stock. All these bonds have cumulative dividends - in other words they will by paid only if the bonds are redeemed, and nearly pounds 10m cannot be redeemed.
Mr Biermann and his advisers, Williams de Broe, say Maddox will receive an annual cash dividend of pounds 866,000 from the bonds, which will roll up only if the buyout vehicle cannot pay the dividends out of profits. As the latest audited figures show the cables companies just breaking even, Maddox shareholders need a lot of faith.
- 1 Christmas comes early to Hong Kong, as millions of bank notes spill out onto busy street
- 2 The 'Black Museum': After 150 years, public can visit police’s grisly crime museum
- 3 British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
- 4 Vagina canoe artist facing two years in jail defends herself over ‘obscenity’ charges
- 5 The Queen’s speech 2014: Recap and Twitter reaction to Game of Thrones reference
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall set to push even more bargain-hunters online for sales
The 'Black Museum': After 150 years, public can visit police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...