Demerger - process

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!

2 Likes

@Andy The process is automatic but unfortunately, we’re not able to provide the new shares. You’ll 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 you’d 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 can’t imagine there will be just me invested in TILS at this stage

3 Likes

Why assume down?
Demergers (not always but often) are essentially a ‘sum of the parts don’t equal the whole’ 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. I’m so old I immediately think of Biffa being separated from Severn Trent. But I’m sure there’s more modern day equivalents.

DYOR - I know nothing of this specific company

Either way it seems you can’t really partake via T212 as per the above any way

1 Like

Just in cryptos its easier for me to see whats happening. Its the first I’ve 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.

@rufnek2kx The spin-off date is still TBA.

@David Thank you. That’s understood. Just wondering what the current practice is.

Above you’ve mentioned that the cash equivalent will be provided. Would that count as a deposit or special dividend? I’ve 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.

It’s not a new subscription… it a “continuing investment” for tax purposes… you had 100 … now you have 80 and 20, for example… so 2 assets instead of 1…same value… no “additional” monies added to the ISA…

You can’t 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 “sale” I’d imagine as a “deposit” would look like new monies…

I’m invested too and also wondering if the new company will be available to trade on T212 immediately. I just assumed we would get the shares in the new company, didn’t realise they could be “sold” on our behalf. Is it possible to explain what exactly happens here??
It would also be good to know if the Accustem shares will be available to trade either immediately or very shortly after the company is listed as I don’t see the point in buying further TILS shares if we won’t be able to fully benefit from the Accustem portion of the current price. appreciate it may be hard to comment until further details are released of the demerger process.
Thanks

4 Likes

I’m also invested in Tils and was also disappointed to learn I was not able to receive StemPrintER shares.

5 Likes

So what will the process be?

Will the Stemprinter IPO be available on 212 when it demerges?

Will we have an option to purchase these shares at fair value?

We the money be paid the same day as Stemprinter is on the market?

4 Likes

Can someone from T212 explain exactly why this is?

As a shareholder I got the option for buying additional shares in DeLaRue even though my name isn’t on the registry but when it comes to getting FREE shares in a new company likely to sky rocket am I to be left with only part of their value?!!!

How do I move my shares elsewhere so I get the demerger split off in Accustem? Currently running at a loss so don’t bother saying sell them and buy back with the proceeds unless T212 are filling the gap.

4 Likes

Also how do Trading 212 calculate the cash equivalent…is it based on the value per share Tiziana assign to StemPrintER the moment the new company goes to market?

4 Likes

Just adding my voice to second the questions above - could really do with more clarity about this (and ideally being given shares instead of cash if possible… :slight_smile: )

2 Likes

Very much agree, shares should be allocated to Tils holders

3 Likes

@David T212 really should have sufficient time to sort this out. Accustem, the company StemprintER will be demerged into, won’t be ‘live’ until October/November according to the CEO at a conference earlier this week.

2 Likes

@Team212 Lots of unanswered questions on this thread re: Tiziana and Accustem spin-off Would love a little clarity please