Share price matches rights issue - timing? On the day Laing O’Rourke is in the Times over delayed Accounts and Interserve reported that it is considering handing over its crown jewel to lenders - we see K’s share price matching the rights issue price. It just makes me wonder if the share price is being supported ahead of the rights issue closing?
BBC reports on Kier/Powys Council BBC News Fears over repair contractor's future Opposition groups in Powys call for assurances about a firm responsible for council house repairs.
CEO quotes bank pulling exposure to 4 other contractors KIE… XXXXX Rights deadline in two days 409p share price 394p
Interserve Will HMG be forced to take in-house the FM business of Interserve and more importantly other FM contractors? If the yes will K receive financial compensation or not? Should a Labour Government be formed will they affect any compensation pay out? Overall should K offload its FM business so as to protect shareholder value before politics and Carillion/Interserve fallout creates problems for K?
Below rights issue price FT and Times report on problems at Interserve. I think City will be concerned about the current state of the outsource market/firms, resulting in a possible down rating. Timing of K’s rights issue - with hindsight should have been sooner.
FTSE 250 demotion for K [link]
Below rights issue price Trump and Brexit are hurting share prices and it could drag on for sometime. If share price is below 409, then it would be cheaper to buy shares in the market and not take up the rights issue, leaving the shares from rights issue with underwriters. The next question is how much lower will K go?
Below rights issue price I feel a little silly asking this but genuinely would like to know if there is any reason to buy at 409 if the current share price is lower?
FTSE 250 demotion for K Top team need to be held to account - that means they should go with only the contractual minimum payoff.
K in Construction News [link] Interesting in that MPs are calling for a 30 day statutory payment term yet will HMG keep to the same payment terms?
FTSE 250 demotion for K cityam.com – 4 Dec 18 Royal Mail, Kier Group and Thomas Cook set to lose out in FTSE reshuffle Royal Mail will need a miracle to avoid relegation from the FTSE 100 Index tomorrow, as insurer Hiscox looks ready to step into its place as a blue chip You have to question how much value has been lost by the Board - partly reflected in the relegation out of FTSE 250?
K in Construction News Construction Minister is reported calling for K to stop extended payments to fund working capital. If K secures more turnover how will it fund it if extended payment terms is denied it - another rights issue? I think it would be better to shrink the group to match its ability to fund working capital. I also wonder if May Gurney, Mouchel and Kier Property should be sold to generate more cash for the Group during the period UK banks are reluctant to lend to construction sector?
CEO quotes bank pulling exposure to 4 other contractors KIE… XXXXX Rights 30th November 405p its gone below that now .
Construction News [link]
Below rights issue price Well they have understated their debt! What are the four other contractors which banks might not lend to?