Raven Russia

Raven Russia Preference shares are yielding around 9% at the current price. They are held in large numbers by the directors, Invesco and Neil Woodford. They do not appear on the list of Preference Shares on this site. The shares are liquid and the company has a large land bank as well as its established warehouses in major Russian cities. I am tempted to buy as the yield possibly reflects the risk but would value any comments from those with more experience.

Comments

  • I have held these off and on for some time now. Apart from the obvious geopolitical risk, the only point I would make is that they are redeemable under certain circumstances, which explains some of the higher yield. As you imply, I have taken some comfort from some of the other holders.
  • Quite a big holding for me, and I added more when yield was a bit over 10%.
    They have recently or are about to issue more Prefs which will rank ahead of these. Am waiting to see what price these start at.

    Recommended reading:-
    http://boards.fool.co.uk/raven-russia-prefs-rusp-13015668.aspx?sort=whole#13391428
  • I've held some of these for several years. From what I've read about the company it is well run. Recently they have issued some new preference shares which I believe subordinate RUSP. Have a read of the Motley Fool Banking Board for some further discussion on these. With Putins Russia nothing can be taken for granted though so I personally would not get too exposed.
  • Many thanks for these comments and for the link to extensive coverage on the Fool. I now have a toe in the water.
  • Those new convertible prefs (RUSC) started trading today - 101/104 quoted, but so far only for very small amounts.
  • Raven Russia made announcement today - part of which relates to Preference shares as follows:

    Raven Russia notes the recent announcement by Aviva plc of its ability to cancel certain irredeemable shares it had issued at or close to par value through a reduction of capital, and the resulting interest from the UK Financial Conduct Authority and a number of institutional investors. The Company has taken its own legal advice on the matter. In light of that advice, the Board considers it appropriate to put to shareholders at the Annual General Meeting proposed amendments to the Articles that would provide that a reduction of capital of the Company's cumulative redeemable preference shares of 1p each ("Preference Shares") or Convertible Preference Shares (which, in effect, could implement a cancellation of such shares at a significant discount to their market price) should require the specific class consent of the relevant class of shares. The amendments will also require the class consent of the holders of Preference Shares (in so far as they relate to the rights attaching to the Preference Shares) and the holders of Convertible Preference Shares (in so far as they relate to the rights attaching to the Convertible Preference Shares).

    Looks like they, along with Ecclesiatical, at least are trying to do the right thing.
Sign In or Register to comment.