An agent has raised on our Arena forum the question as to whether agents who voted No to the demutualisation of Agents’ Mutual have a legal duty to sign the lock-in share agreement.
The agent, ‘BrandNew’, a Gold member, also queried whether unanimous agreement to the lock-in is required in order for the IPO to succeed.
The agent claimed: “Interestingly the OTM rep has just been to see me for the first time in two years.
“Apparently we do not have to sign the lock-in which would allow us to sell the shares on day one. And if enough of the ‘no’ voters do not sign, it could make the IPO more difficult.”
The agent, who has not entered into a new listing agreement, also contacted EYE to say that they had had a letter from OTM chief executive Ian Springett.
This letter makes clear that under the lock-in agreement agents would have to hold the bulk of their shares for five years, but could sell up to 10% after 12 months and a further 10% after 24 months.
The letter says: “The lock-in agreements are essential to enable us to achieve a successful IPO, to drive the business forwards and to increase share value for you and all shareholders.”
Separately, another OTM agent contacted EYE to say that they had not voted but had been against the demutualisation. They did not wish to enter into a new listing agreement but simply wanted to continue their existing agreement until it ran out.
We put both these issues to OTM.
A spokesperson told us: “If members have any queries about such matters, they should address them directly with the company.”
Comments (21)
How happy would you be for your pension fund to invest into this IPO?
Seriously? What professional money manager would seriously consider this?
So where did it say pre-vote that those who voted no would be able to sell their shares immediately if they so wished?
Was this just a simple oversight….. human error not intended to mislead?
Reminds me of OTM, especially “When you knew that it was over in the autumn of good-byes”
Round like a circle in a spiral, like a wheel within a wheelNever ending or beginning on an ever spinning reelLike a snowball down a mountain, or a carnival balloonLike a carousel that’s turning running rings around the moonLike a clock whose hands are sweeping past the minutes of its faceAnd the world is like an apple whirling silently in spaceLike the circles that you find in the windmills of your mind!
Like a tunnel that you follow to a tunnel of its ownDown a hollow to a cavern where the sun has never shoneLike a door that keeps revolving in a half forgotten dreamOr the ripples from a pebble someone tosses in a streamLike a clock whose hands are sweeping past the minutes of its faceAnd the world is like an apple whirling silently in spaceLike the circles that you find in the windmills of your mind!
Keys that jingle in your pocket, words that jangle in your headWhy did summer go so quickly? Was it something that you said?Lovers walking along a shore and leave their footprints in the sandIs the sound of distant drumming just the fingers of your hand?Pictures hanging in a hallway and the fragment of a songHalf remembered names and faces, but to whom do they belong?When you knew that it was over you were suddenly awareThat the autumn leaves were turning to the color of her hair!Like a circle in a spiral, like a wheel within a wheelNever ending or beginning on an ever spinning reelAs the images unwind, like the circles that you find in The windmills of your mind!
Keys that jingle in your pocket, words that jangle in your headWhen did summer go so quickly? Was it something that you said?Lovers walking along a shore and leave their footprints in the sandIs the sound of distant drumming just the fingers of your hand?Pictures hanging in a hallway and the fragment of a songHalf remembered names and faces, but to whom do they belong?When you knew that it was over in the autumn of good-byesFor a moment you could not recall the color of his eyes!Like a circle in a spiral, like a wheel within a wheelNever ending or beginning on an ever spinning reelAs the images unwind, like the circles that you find in The windmills of your mind!
Unfortunately I feel that the whole idea has become a farce. I still have an issue that us agents who effectively got the whole project up and running and had been sold the idea of a mutual, where we all have an equal say and voting ability, were not even consulted as to the offer that was made for the business. Ok, we may of turned it down but we also may of accepted it. Call me suspicious but it appears to me that Ian had this outcome as his master plan right from the start and we have all been used as pawns to help him get the pay check that the floating option brings!
Personally, by not signing, I would rather be able to sell shares immediately after float when the share price may possibly be at their zenith?
My commitment to this mutual ended when I voted no.
That is probably my view as well.
However, and someone may correct me on this, it may still be up to twelve months before we can sell, as that is when OTM will ensure there is a market facility.
Prior to that it would need one or two brokers to create a market otherwise there would be no one to sell to?
I’m not a well versed in the magical ways of share trading as some.
As I understand BrandNew, the shares should be trading as soon as the IPO is complete.
Unless you are prohibited from selling them due to any contractual terms with OTM (eg. lock-in), then you will be able to sell them straight away.
I too received an email from the lesser-spotted OTM Rep earlier this week, asking me to crack on with signing the shares lock-in agreement. There was absolutely nothing in the email to suggest that there could possibly be another option available to me as a gold member.
So I asked what happened if I didnt sign. The response?
“the shares are yours anyway and we want you to get the best value of them in years to come so it’s within your interest. Should you not then share prices may not be as strong”
I think this is when principles absolutely trump pragmatism.
I then asked what Plan B was, should the required external funding not be secured (which I suspect it wont). The response:
“The fall back option could be one of many.. if I was guessing person they could seek investment elsewhere and then there would be no shares…Or the share price is low on the day it floats..
I’m sure Ian has a fall back in mind”
Doesn’t exactly inspire confidence, does it?
So, as confirmed by your OTM Rep Brand New, rather than Ian Springett who has written the letter… there is NO Legal Obligation to sign the letter.
Good to know we have OTM clarification. I’ll stick with Principles then. If it’s going to be such a roaring success then OTM doesn’t need the insignicant “Leavers”.
I recall Ian Springett broadcasting the resounding support of the “majority” ….so, crack on then, “The Leavers” are NOT required.
I look forward to seeing confirmation of how many are actually leaving OTM in January 2020, when freed from the shackles of the ridiculous aftermath of the Float Success.
It’s farcical to think that I will continue to pay the same monthly subscription until January 2020 when I leave, yet New Members can receive discounted subscriptions etc when they join. So, I will effectively be propping up the discounted “Joiners”?
If the Majority Win was so large then surely OTM should have just jettisoned The Leavers and built on their Remainers? …..surely those “Investors” want to see a strong, committed base which doesn’t include those waiting to leave.
Mind you, if I was negotiating for an investor, I would be driving down the pre agreed per share price before committing and agreeing that I would buy x-number of shares based on the share price thus hopefully gaining more overall shares… however, I’m just an Estate Agent so don’t ask me about the world of share spinning.
I’m just waiting to leave OTM …roll on January 2020.
We ain’t signing to stay for five years, but happily let the current agreement keep rolling as it is cheap to advertise. If they think they can upsell and get us to spend more then they are surely mistaken, until they can prove their worth to my bottom line!
If they hike up the price, then Zoopla will be getting a call from me, but will still have the shares, should they still be trading in five years time.
As far as I understand it, after a ‘short’ conversation with my Rep, those of us who have not signed the new listing agreement are under no legal obligation to sign the lock-in.
Naturally if enough agents did not sign, leaving the way open to sell their shares in their entirety as soon as they could, then the markets would take a lesser view of the IPO.
Of course that could mean that any share holdings would be down valued.
Principles or pragmatism?
Each to their own.
Oddly I was reluctantly discussing OTM yesterday. I say reluctantly as they are effectively dead to me. Dead because I have no interest in remaining with them however I wish those that voted to stay all the best with their decision.
So, having been dragged along this Float path against my will, along with others… and basically ignored, rolled over with the legal process and told what I can/can’t do, even although I don’t want to stay with OTM …I am now being asked to respond, to sign, to play nice?
No doubt there will be more correspondence with “legal” undertones if the form isn’t signed. However, here we are, being asked?
It’s odd, rather like the school bully that now wants to be your best friend, just for 2 minutes ….till they get what they want.
I thought they had all drowned in a sea of Champagne Float Success Celebrations.
Well Mr Springett & Co… you best skip straight to the “you must sign or else!” part because that’s how its gone so far, pretty much.
Release your Statement Ian telling us we have no choice but to sign… rather than asking us to play nice.
I thought I was rid of this fiasco! …..in the month of Halloween we now have the lid creaking open and the cold, caped, dark lord looming large… get on with it Ian, tell us that legally we have NO Choice but to sign…. or is there something else that you want to say?
It’s odd, rather like the school bully that now wants to be your best friend, just for 2 minutes ….till they get what they want.
I think that one sentence sums the whole fiasco up.
Not sure why On the Market want people to write to them. I have written to them 4 times regarding my concerns, when they stopped advertising, I have had no written replies.
Brexit Means Brexit!!!I only ever hear the voices of the re-moaners…
That’s fine, crack on… The Leavers aren’t required then. Don’t bother contacting The Leavers! I never asked for a Letter.
Looks like the silent majority may still win this!
Not enough tie ins means harder to float, means lesser share price. Means less chance of a new Rightmove.
I think agents would be mad to sign up for a further 5 years on the very spurious promise shares will launch at £4 AND REMAIN THERE FOR AT LEAST 5 YEARS!
I’m a silver member, I received the same letter, by registered post. I voted ‘NO’, and am not inclined to sgn the lock in agreement. I have not heard from a rep in 2 years, other than a telephone call just before the voting deadline to try and persuade me to cooperate.
I did not agree to any of this and it is contrary to why I agreed to sign up with OTM in the first place, so I don’t see why I should doing anything to support the IPO.
Us too! Why commit to a further 5 years of comissery when the organisation you wanted to support does a complete about turn to promote the ideals which brought about why we joined OTM in the first place. As the man said “we’re out!”.
I am also a gold member and received exactly the same – maybe the small indies can have a say in the outcome with OTM – i am yet to discuss with my rep, who called twice this week, maybe i can negotiate termination of contract in return for cooperation ?
OnTheWho ?
Is that the New “Carry On” Film ?
Laughable, rumbustingly laughable !