Can anyone who is still here please tell me how to work out our gain or loss from the takeover? What is the disposal price? Is it cash plus the value of Sainsbury shares received on 6 September 2016 (or some other date)?
I suspect they were both keeping their powder dry until the Interims were out. They would also have been assessing the other bidder. Neither will want a bidding war so they will have been trying to win support with major investors / pension funds etc.
I would expect a new bid next week from one of them - but the real work is being done behind the scenes right now
I think they always expect the pres to get there first!!
Also they PR department had all gone home early , probably, it being Friday and all.
Just bought some HOME today at 4.00pm as I felt a counter bid might be in the offing!
This way we get mainly cash and you don't have to hold SBRY as part of the deal. Let's see what happens!
Of course both companies could walk away but it seems unlikely. The bit of Argos they want is the logistics and technical systems in place (internet shopping,delivery-Click and collect etc, not necessarily the shops per se.)
Plus there is the finacial arm aswell. Those credit lines to the customers come with some hefty interest rates keeping that part of the business pretty healthy!
This is an announcement of a possible offer under Rule 2.4 of the City Code on Takeovers and Mergers (the "Code"). This announcement is not an announcement of a firm intention to make an offer under Rule 2.7 of the Code and there can be no certainty that an offer will be made.
Confirmation of approach to Home Retail Group plc
Steinhoff announces that it has today put forward a proposal to the Board of Home Retail Group plc ("HRG") seeking their recommendation for a possible all cash offer for HRG, which would result in HRG shareholders receiving a total value of 175 pence per HRG share (the "Steinhoff All Cash Possible Offer") comprising 147.2 pence in cash and the payments as set out below (together the "Proposed Capital Returns") per HRG share, payable before completion of the Steinhoff All Cash Possible Offer, of:
· approximately 25 pence (the "Homebase Capital Return"); and
· 2.8 pence per share in lieu of a final dividend in respect of the financial year ending 27 February 2016.
Steinhoff is making this announcement to ensure that HRG shareholders are fully informed while making any decision in connection with the possible offer announced by J Sainsbury plc on 2 February 2016 (the "Sainsbury Possible Offer").
Steinhoff confirms it is supportive of the ongoing disposal of Hampden Group Limited (trading as Homebase) ("Homebase") by HRG as announced on 18 January 2016 and described in the circular to HRG shareholders dated 2 February 2016.
Steinhoff reserves the right to make an offer at any time which represents a total value of less than 175 pence per HRG share (including Proposed Capital Returns):
· with the agreement or recommendation of the Board of Directors of HRG; or
· if a third party (other than J Sainsbury plc) announces a firm intention to make an offer for HRG pursuant to Rule 2.7 of the Code, which at that date offers a total value of less than 175 pence per HRG share (including any Proposed Capital Returns or dividends which may be paid by HRG); or
· following announcement by HRG of a whitewash transaction pursuant to the Code
Steinhoff reserves the right to reduce the consideration of any offer by the amount of any dividend (or other distribution) which is paid or becomes payable by HRG to its shareholders after the date of this announcement, other than the Proposed Capital Returns outlined above.
The Steinhoff All Cash Possible Offer is subject to certain pre-conditions, which can be waived, including satisfactory completion of due diligence. There can be no certainty that any offer will be made.
A further announcement will be made as appropriate.
In accordance with Rule 2.6(a) of the Code, Steinhoff must, by not later than 5.00 p.m. on 18 March 2016, either announce a firm intention to make an offer for HRG in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.
In accordance with Rule 26.1 of the Code, a copy of this announcement will be published on the Company's website (http://www.steinhoffinternational.com/) by no later than 12 noon on 22 February 2016.
LTBH shareholders such as me are inevitably losing out because we paid more, did not sell in recent months at north of £2:00, and in my case also a Sainsbury holder, so doubly bitten hard. Hardly greed!
If I were a HOME shareholder I would jump at this offer and take the money - you would have the chance to offload your new sbry shares before they decrease over the following 3 yrs, with the new owners taking over the DECLINING profit trend!
On a customer level, I won't touch Argos with a barge pole - far too many issues in the past and even quite recently. Customer service locally is generally abysmal.
SBRY, not perhaps what they used to be, but still light years better than recent Argos experience.
On an investment level....SBRY will get the integration, improved customer service they will bring and the delivery skills (as long as it isn't related to delivering furniture!...private comment). Argos will get a shot at the future.
As a SBRY shareholder I can reluctantly see a fit (but think 145-150p would have been a "fairer" price) but would also be content to see the deal fail. I think it is right at the top end of the range.
If I was HOME shareholder with the premium to the December price and the headwinds, I would SNATCH IT !
Key point is that this is business and not sentiment....so will probably go through.
Ah,161p inclusive of special dividend and inclusive of Sainsburys shares isn't the greatest deal really, especially as Sainsburys shares will probably fall today. Like I said before, let's take it and move on...
So what does this mean for the average small shareholder? An statement from the company said £200 million would be returned to shareholders from the Homebase sale. (divided by shares in circulation, probably not a huge amount each!) Then the sale/takeover of Argos, I assume shareholders will be paid out on that too at circa 160/165p if reports are right. OR am I wrong?
LTBH investors ripped off yet again. Cash in pockets of Directors for selling off Hombase, and opportunist buying Argos (newly set up for growth with new systems) at a bargain basement price. Rubbish deal. Surely they could have done better for shareholders.
Sainsburys bid for Home Retail Group is set to be accepted. Photograph: PA
Monday 1 February 2016 14.22 GMT Last modified on Monday 1 February 2016 14.41 GMT
Sainsburys has won its three-month courtship of Home Retail Group, with a £1.3bn takeover of the Argos owner expected to be announced as early as Tuesday, according to leading investors in both groups.
Sainsburys had its first approach for Home Retail snubbed in November at a price believed to be around £1bn. But it returned to the pursuit of its target shortly after the New Year and now needs to put up a formal offer before 5pm on Tuesday or ask for an extension from the Citys Takeover Panel, which regulates bids and deals
Investors are confident that a deal has been reached between the two parties at a price of slightly more than 160p a share. This represents a decent premium for Home Retail shareholders, who saw the stock dive below 100p prior to news of Sainsburys interest, and is not too high to scare off investors in Sainsburys
The problem with the bookies is that
when your horse falls that is the end of your money.
Many wobbly companies struggle through
and live to fight another day,
The market does not believe that there will
be a significant bid (180p plus.) for Home Retail.
I retain half my original (pre-bid)holding.
Even if no bid emerges the company will be
regarded as being 'in-play' and will attract a premium.
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