Demerger process £TILS

Hi FT team,

Tiziana Life Sciences is likely to be undertaking a demerger next month after it’s been approved by shareholders.

They plan to allocate shares in the new company to existing shareholders of TILS and it will also be listed on the AIM.

I’d be very keen to hold shares in the new company, as StemPrintER is the primary reason I invested in TILS to begin with.

Is there an existing process in place for demergers?

Worse case scenario for me would be to receive cash in place of shares in the new company and then have to lobby for the new company to be added to FT.

Cheers!

http://www.branduk.net/tiziana-life-sciences-tils-demerger-of-stemprinter-genomics-based-personalized-medicine-business-as-a-separate-listed-company/

I asked this in chat for the same reason, so would also like to know what would likely happen in this scenario.

Bumping so it’s not missed.

With the demerger of M&G out of Prudential shareholders of PRU were automatically given M&G shares.

1 Like

I don’t get the confusion here. There’s only 2 scenarios. 1 is standard, 2 is ‘new broker’ specific as they have limited stock universe.

Demergers are simply a split in value of something you already own.

Therefore you can only

  1. Split holding into stock A and B and reflect in your account

  2. Reflect Reduced holding A , sell B as your platform can not support the new B stock so you get cash instead

You own it. You will get value for it in some way.

Currently the spin out of TILS has no official market data for me to assess whether it’s crest-able and the market it will be listed.

Given FT limited universe I suspect you’ll get option B - tils holding reduced, cash for stemprinter

What confusion are you on about?

I asked a question because there is two likely outcomes…the ones you have outlined.

I would like Freetrade to confirm if they already have a process in place, which means one of the two options will be taken as a default.

2 Likes

Hi :wave:

The details around the potential demerger are somewhat limited at present, once we know more, we will look to see if we can hold any new stock at FT. We should know more after the AGM on 16th July 2020.

2 Likes

Any further update on this yet?

2 Likes

Can we get an update.

Hi,

Can you please update on this, as official announcement has been made now?

Thanks.

3 Likes

A RNS has now been published which outlines all of the dates relating to the demerger so could we now get an update please?

2 Likes

What’s the Freetrade position on passing on shares in the new company following the Tiziana de-merger?

1 Like

Hi there, another Freetrade user enquiring as to the above. Thanks.

Initially it looks like a fairly standard demerger. 1 asset spins out something else. Usually pretty simply. Accustem will also seek to list on the LSE :white_check_mark:and be CREST eligible :white_check_mark:

All of those signs point to FT being able to administrate this Corporate Action - if they want Accustem/Stemprinter in their asset universe.

However… this is the fun section of the RNS

“. Whilst the Accustem Shares will be allotted on the completion of the Demerger, it is unlikely that the process to obtain a standard listing on the Official List and admission to trading on the London Stock Exchange will be complete by the date of completion of the Demerger. Accordingly, no Accustem Shares will be actually issued (or CREST accounts credited or Accustem ADSs issued) until the earlier of Accustem Admission; and 2 months from the date of the completion of the Demerger

So it will spin out of TILS (if approved) late October… however you won’t see anything change (except the value of “new” TILS drop) … for maybe 2 months.

That leaves all brokers with no option but to just wait for the stock out turn… by Christmas if you’re lucky

:santa:

1 Like