# CGW - Coats Group PLC



## whealy (17 May 2011)

I have shares in GPG and do not understand the capital return to shareholders.
It looks like GPG are redeeming shares at the market value not the asset backing.
NTA 85c approx. Return of capital at 55c approx.
Where is the value in this to shareholders. We could sell on market and get the same value and not need to wait for years and get the money back in dribs and drabs.

I am missing something. Can anybody explain to me what is happening.

In early statements Management said eventually it would become  a play on Coates(the main asset) after all capital had been returned but if I have no shares left how do I benefit from getting the market value and not the NTA

Bill Healy


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## oldblue (17 May 2011)

*Re: Guiness Peat*



whealy said:


> I have shares in GPG and do not understand the capital return to shareholders.
> It looks like GPG are redeeming shares at the market value not the asset backing.
> NTA 85c approx. Return of capital at 55c approx.
> Where is the value in this to shareholders. We could sell on market and get the same value and not need to wait for years and get the money back in dribs and drabs.
> ...




Several points there.

First, the capital return is only for 1 of every eight shares held. So you still hold seven eighths of your total.
Second, it's arguable that the price at which the one share is redeemed is largely irrelevant in that all shareholders get the same and the value left in the company is spread across all remaining shares.
Third, it's really a question of whether you think GPG - in reality, largely Coats - is worth holding while the SP is so far below the asset backing, ie whether or not they will be able to eventually realise better than the current SP. Again, it boils down to how Coats performs and what GPG can sell it for, if indeed they don't go the other way and merely distribute shares in Coats pro rata to GPG shareholders.

An open question at this stage IMO.


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## whealy (18 May 2011)

*Re: GPG - Guiness Peat Group*

Thank you very much. Everything you wrote makes sense. if I got most of the asset backing back in capital returns I would not mind shares in Coats as I could sell them if needed or if they look like not performing in the long run. Acording to GPG they have now turned Coats around but the profit is pretty paltry.
It may be a case as Warren Buffett says  When good management is involved with a company in and industry with poor prospects it is usually the company which retains its reputation.  (Or words to that effect)


Bill Healy


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## System (6 March 2015)

*Re: CGW - Coats Group*

On March 6th, 2015, Guinness Peat Group PLC (GPG) changed its name and ASX code to Coats Group PLC (CGW).


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## System (28 June 2016)

On June 24th, 2016, Coats Group PLC (CGW) was removed from the ASX's official list at the request of the Company, in accordance with Listing Rule 17.11, and outlined within the Company's announcement dated 17 November 2015.


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## notting (28 June 2016)

Hey mr sytem where is the thread for CYB.
Has become rather interesting don't you think!!


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