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!

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@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

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

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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…