tag:blogger.com,1999:blog-5445569787371915337.post2249899184832926036..comments2024-03-29T05:24:30.793-07:00Comments on Shut up about Barclay Perkins: English Lager Beer Brewery wound upRon Pattinsonhttp://www.blogger.com/profile/03095189986589865751noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5445569787371915337.post-53444585238037418692012-09-24T08:58:58.738-07:002012-09-24T08:58:58.738-07:00The valuation is even harder to understand when on...The valuation is even harder to understand when one considers that the lager beer plant was added after the purchase... I wonder though if part of the assessed 39,500 p.s. was on account of goodwill. Was Freehold Brewery a going concern earlier? Even if it was though, how could goodwill be gained from buying a brewery whose products would have been very different to the planned lager production? It seems to contradict the idea that lager is really different from mild ale et al. Something doesn't seem right in the whole picture...<br /><br />Gary<br />Gary Gillmannoreply@blogger.comtag:blogger.com,1999:blog-5445569787371915337.post-41806300955417637192012-09-24T07:56:07.344-07:002012-09-24T07:56:07.344-07:00Gary, you're right. I misread that.
They stil...Gary, you're right. I misread that.<br /><br />They still paid a little more for the brewery than what it was valued at.<br /><br />You can see the schedule of when the shares had to be paid for in the prospectus a few days back. I'm pretty sure they never sold all the shares. And even some of those allocated, as I'll write about soon, had less than convincing owners.Ron Pattinsonhttps://www.blogger.com/profile/03095189986589865751noreply@blogger.comtag:blogger.com,1999:blog-5445569787371915337.post-16811176576645874062012-09-24T07:48:03.013-07:002012-09-24T07:48:03.013-07:00Ron, a sad tale indeed. As I read it, the mortgage...Ron, a sad tale indeed. As I read it, the mortgages were 10,000 pounds not 17,000, indeed the prospectus stated the property had been valued at 39,500. <br /><br />The full authorized capital may have subscribed for but it was payable in installments, and the ones next due would have gone to the bank to pay the overdraft of 10,647. It's hard to understand how the mill and brewery would only cover the mortgages on a wind-up yet were valued at much more some time earlier.<br /><br />Despite the word "unfortunately", I am sure the company knew about the mortgages.<br /><br />Today in North America at least, when you subscribe for shares, you must pay in full the amount subscribed for. I.e., all shares must be "fully paid" on issuance. You can't owe the balance, even on a promissory note. The way to do it is borrow the money from a bank or other party, pay in full the shares, and pledge the shares to the lender as security for the loan. If you can find a lender. But the company can't be banker, any longer. I don't know if this is true in the U.K. as well.<br /><br />GaryGary Gillmannoreply@blogger.com