PSTH Merger Announced. Will 212 be able to provide support for the entire deal?

I literally have no idea, you’ll have to ask them the ins and outs. But it is what it is when using a service that you don’t pay for.

And like most free stuff in life, there is some compromise.

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We don’t know a lot of things for certain yet, like:

  • Will the UMG dividend to PSTH-holders consist of Euronext securities or will they be NYSE traded? I would gravitate towards the latter as that would be where BA could assist and it would essentially give UMG a dual listing (pretty vital for a company of that size and scope). Everyone is reporting it will only be listed on EN but I can’t find any source of confirmation for this.
  • What is the actual status of the SPARs? Are they actually warrants, or more like rights. They currently seem more like warrants, but no broker can do anything until this is confirmed.

Ideally, what I’d like to see happen through Trading 212;

  1. We get our PSTH 1:1 equivalent in UMG shares.

  2. Warrants are not supported so we get the cash equivalent.

  3. We retain our existing PSTH shares (Remainco) and Bill announces a decent merger.

  4. We get notified in a similar way for Rights offerings to participate and buy a SPARC share on a 1:1 PSTH basis once an acquisition target has been announced.

I’m not saying this will happen, but it’s my preference.

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Don’t take my word as gospel, but I believe these will be tradeable rights separate to the actual common stock of the SPARC, rather than your typical rights offering. They also have a tontine structure like the Redeemable Warrants. From the announcement (emphasis mine):

Instead, SPARC intends to issue rights to acquire common stock in SPARC for $20.00 per share to PSTH shareholders (“SPARs”) which can only be exercised after SPARC enters into a definitive agreement for its initial business combination. The SPARs are expected to trade on the NYSE and have a term of five years, subject to extension.

Holders who elect to exercise their SPARs will also receive the right to exercise a proportionally greater amount of SPARs to the extent that other holders of SPARs do not exercise their SPARs.

Yea you’re correct regarding the rights. But based on current methods, I see the only way T212 can allow us entry is similar to how they do the rights offering for other stocks.

+1

I’ll be checking back once the deal has been approved. Hoping that because T212 uses Interactive Brokers’ systems as its underlying infrastructure it’ll be dealt with correctly for such a popular SPAC.

Saying that, the complexity of the deal will likely cause issues… a good buying opportunity nonetheless!

The best explanation I’ve heard is by SPAC expert Enrique Abeyta via his Hard Money podcast – well worth a listen:

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Hi B.E,

Do you have any further information you can share with us, or at least the preferred plan by T212?

Thanks!

June 22nd is the Vivendi/PSTH deal vote. Details will be confirmed then and brokerages can start planning.

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I’m sure planning can start in anticipation of the vote going through; in terms of how to action the warrants, distribute UMG shares, gain access to SPARC etc.

It wouldn’t make sense to only start once the deal gets voted through, you’d pre-empt the work required beforehand and get that planned in.

I’d be pretty annoyed if we didn’t get access to the full deal because one of the actions would “take too long to implement”.

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An outside the box solution could be to sell your shares on 212 and rebuu with a broker that has full functionality rather than hoping for features/a solution to be implemented in time of you want to remain a a shareholder and participate fully?

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Good point. This would be wise if it looks like T212 cannot support the structure. Very tempted to start accumulating elsewhere while the stock is being beaten down.

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I agree with you Matt

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Great idea…. I’ll sell my shares that incurred an FX fee when I bought, to then incur another FX fee to sell. I’ll then wait who knows how long to have the money withdrawn, then set up another account with a different broker, to then incur more charges when I buy, at potentially a higher price than I sold at…

Or, T212 could start acting like a responsibile broker and start adapting to the ever changing market - unable to support mergers/demergers according to the intended deals, stopping buy orders on penny stocks etc.

I’m not sure a great business model of stopping new accounts and then providing a sub-standard service so people go elsewhere is very sustainable…

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While I agree that T212 needs to be compatible with a wider range of set-ups and asset classes, which I’m sure they will be over time, we just need to be kind and patient.

Don’t forget that T212 is a free service that has allowed an unprecedented number of people, previously hit with many barriers to entry, access to the markets and on the path to financial independence. We’re some of the lucky few who were on the platform before new sign-ups were paused. Like with a lot of industries in tech, we’ve experienced five years of change in a single year and with that comes mistakes as well as opportunity.

I’m not sure of your personal situation, but I personally am likely to purchase a similar quantity via a traditional broker if it looks like T212 cannot support the PSTH set-up. As more people start to realise the value of the deal, the stock price will inevitably rise and I will be able to sell my T212 PSTH position and gain back more than my cost basis on the other broker platform.

Over time, any FX fees or small dollar difference in stock price will be negligible to 5-10 year returns.

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You do realise this is for regulatory reasons or on request of Interactive Broker, not 212. We also have to realise we pay very little right now, we ask for more, it will ultimately cost more as we request more services. Something has to cover the costs and that will be us.

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From my whole reply you jump on the penny stock mention… it was an example of why people would move away from T212 - like you suggested they do.

Regarding the costing more for more features, if they allowed new accounts they would therefore make more revenue…

Please keep this thread to PSTH.

I’m sorry for upsetting you, I didn’t realise only you could go off topic.

I’ll continue having a few pints in the :sunny:

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This post was flagged by the community and is temporarily hidden.

no need for the passive-aggression. If people feel your posts fail to follow the forum guidelines, don’t be surprised if you see them flagged and later removed.

The standard of service has only improved since the account registration was closed, if you don’t feel so then you should consider just moving brokers and getting all your complaints dealt with in one go even if it means a one-off ‘loss’.

also don’t mention things if you don’t want to see a response about it.

As far as this thread goes, “will 212 be able to provide support for the entire deal?”

no - but they will provide what they can and what they are already in a position to do so once the deal goes through. T212’s situation has not changed overnight, so being aware that T212 only deals in shares, clients had the option to purchase the PSTH shares elsewhere to receive their complete package.
Instead of T212 wasting time making “could-be” plans for the result of the deal, it’s better for everyone they keep their resources focused on being productive in others aspects until the deal is finalised and they can follow a set route to fulfil their obligations to PSTH shareholders upon official confirmation.

Apologies if this came across as passive aggressive - I was merely responding back in a tone that I felt matched the original statement. Flag if you must.

I’m not sure what you mean by my “complaints”? I’ve not made any, I’ve mentioned a few issues that I’ve seen on the forums, however I don’t believe I said I had any involvement in these? I was stating some of the issues that I’ve seen members mention they will leave T212 for.

When I asked for an update, I didn’t expect the response from a member suggesting to go elsewhere - that’s not very helpful. I could, as many of us could, make that decision for ourselves based upon an official response from T212. This suggestion from another member is what took the thread off piste and away from PSTH.

This is speculation. I would really like a T212 representative to provide information on what they think they’re able to achieve. The deal has been detailed by PSTH, it’s a case of voting for approval. So it’s not like T212 are unaware of what the deal would entail and as such could start making enquiries with IBKR etc.

Ultimately, what I’m trying to find out is what aspects of the deal T212 think they’ll be able to accommodate, as some aspects are more important/valuable than others. This should be communicated prior to the holding cut-off date, so that it gives investors the opportunity to buy their shares elsewhere, or keep them in T212. Finding out after the holding cut-off will mean investors don’t have the option of moving elsewhere if important aspects of the deal can’t be provided.

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