Hello @Team212 @David and others
There is a talk that Tiziana Life Sciences (TILS) will be conducting a demerger soon. Indications are that current shareholders will get x amount of shares at the new company.
How does it work with T212? Do I have to notify admin team here when I will find out new company name? Or is it an automatic process and I will wake up one day with another company in my portfolio?
Thanks!
@Andy The process is automatic but unfortunately, weāre not able to provide the new shares. Youāll receive the cash equivalent which you can use to purchase the shares.
Never heard of this before (in stocks but seen in crypto with hard forks and youād get the same amount of crypto in new coin as you held in former aswell as keeping the former) so, I am looking forward to finding out about it.
Whats the outlook on current price then? Down for the short of current?
Thanks David. What are the chances of adding a new company very quickly on the request, so that the cash equivalent pumped straight into new co? I canāt imagine there will be just me invested in TILS at this stage
Why assume down?
Demergers (not always but often) are essentially a āsum of the parts donāt equal the wholeā kinda equation.
Ie. If you spun out X from Y then X gets greater visibility as a stand-alone entity and can be appraised more accurately - and most people therefore assume appraised up!
Lots of examples of this historically. Iām so old I immediately think of Biffa being separated from Severn Trent. But Iām sure thereās more modern day equivalents.
DYOR - I know nothing of this specific company
Either way it seems you canāt really partake via T212 as per the above any way
Just in cryptos its easier for me to see whats happening. Its the first Iāve came across it in this sphere so intrigued as to what people think may happen to it.
@David is there a timeline in which shares can bought for receiving the cash equivalent before demerger takes place?
Looks like StemPrintER spins out 25/6 (tomorrow) as far as I read the RNS disclosure
Hi. I would also be interested in knowing about this demerger process for TILS. Have there been any updates since your last post @David ?
Thanks.
@David Thank you. Thatās understood. Just wondering what the current practice is.
Above youāve mentioned that the cash equivalent will be provided. Would that count as a deposit or special dividend? Iāve already maxed out my T212 ISA account deposits for the year so wondering if that would have an impact on the cash I receive in place of shares.
Itās not a new subscriptionā¦ it a ācontinuing investmentā for tax purposesā¦ you had 100 ā¦ now you have 80 and 20, for exampleā¦ so 2 assets instead of 1ā¦same valueā¦ no āadditionalā monies added to the ISAā¦
You canāt classify something as a dividend without it being a dividend. It carries tax implications in certain circumstances.
Your cash would hit your account as a āsaleā Iād imagine as a ādepositā would look like new moniesā¦