3824 days ago
Another day and another missive is issued by the board of Hibu (HIBU) ahead of its EGM on 4th December. Rebel shareholders are trying to oust the overpaid and under-delivering board and oppose a restructuring which will see shareholders lose 100%. I have noted before how the actions of the board in employing uber-expensive bully boy lawyers to try to scare off the rebels are despicable.
In this latest missive the directors, who will nearly all keep their jobs under the proposed plan, say that if shareholders support their strategy then shareholders will lose 100%. But they claim that it is in the interests of all stakeholders to support their strategy so shareholders should back the board. That is patent bollocks.
I happen to agree with the board that Hibu shares are almost certainly worthless. But let’s examine the stakeholders in this case with some gameplay analysis.
3834 days ago
Private investors owning more than 5% of the equity of Hibu (HIBU) have ganged together to force an EGM to oust the board and replace it with their own candidates. My head says this is folly but my heart is with them on principle, given the actions of uber-expensive City lawyers Herbert Smith.
Hibu is undertaking a debt for equity restructuring which will see private investors more or less wiped out – I warned punters this would happen more than a year ago and got stacks of BB abuse at the time as you can see HERE
As far as I can see the company has breached its banking covenants and thus the banks now call the shots. I see no other way out. However the rebels in the Hibu shareholders action group (www.hibu-shareholders-group.com ) think otherwise.
They suggest that the proposed restructuring (which will see virtually all of senior management keep their jobs) is NOT the best way out for equity holders and have thus tabled an EGM calling for new directors to pursue a new strategy. But they are also asking questions of existing directors specifically asking the chairman who is both an equity and a debt holder to explain how he has avoided any conflict of interest during the restructuring discussions? That is a fair enough question.
Were I at the EGM I would also asked the board to comment on a rumour that it turned down a $1.9 billion bid for its US assets last year which would have eradicated sufficient debt to preserve equity value. Is this rumour true and if so what on earth was the board thinking of in rejecting it? There are other questions the rebels will propose and I gather that they have asked the FCA to look into a number of matters. No doubt there is nothing awry here. There never is.
Notwithstanding all of this, my head tells me that at this stage while forcing answers from the board might give emotional satisfaction, the shares are fundamentally worthless and thus the rebels are wasting their time.
But my heart is with them if only because of the actions of uber expensive City lawyers Herbert Smith
3929 days ago
Finally shares in Hibu (HIBU) have been suspended ( at 0.175p). The company is seeking a partial debt to equity solution which will see lenders get ALL of the equity in a new company which will retain all the operating assets plus some debt. The existing company is thus left with nothing and is worthless. Its shares have been suspended and investors told it is a wipeout. And some Bulletin Board Morons regard this as a surprise?
4149 days ago
PrintOnce again, hibu (LSE:HIBU), the company formerly known as Yell, has told investors via an RNS that its shares are worth very little or nothing. The stock is off 18% today but this is not the first time it has warned about this and after a few days folks seem to forget and traders “buy for the bounce”. That might work once or twice and you make a quick turn but one day the shares will be suspended and if you hold the stock you will feel like you are in the middle of Wembley Stadium with your pants and trousers around your ankles. You will be utterly exposed and there can be no get out.
4183 days ago
I warned you back on 25th October that shares in hibu (HIBU) the online directories group formerly known as Yell were worthless and a stonking sell at 0.37p with a 0p target. Interim results out today do not change that analysis, indeed even the company seems to agree with me.
4202 days ago
AIM listed HIBU (HIBU) today made it explicitly clear that its shares were worthless. The shares are down by a mere 26% at 0.37p but even that values this company at £8.81 million. If you own the shares sell them now. If you are able to borrow stock and go short do so as this is free money.
