If they paid a higher price than their offer price for any shares they would have to raise their price to that level for all shares.However I would point out that bidders do not normally buy in the market,even if the market price is below the offer price, they wait until they get formal acceptance from shareholders of enough shares to complete their takeover(usually 90% assuming they owned no shares prior to the offer as on reaching this level of acceptances the offer becomes mandatory ).
The reason being if an offer fails to gain the required acceptance level the bidder does not wish to be left holding a minority of shares and/or being unable to complete their offer.If he fails to get enough acceptances,the bidder may raise his offer or walk away.
It looks if a third party is speculating that a higher will be made.However they may not be correct and will have to accept the offer price.
On the face of it,compared with indicated NAV the offer seems reasonable but the offerer must feel I assume that the portfolio has value beyond the present managers indicated NAV.
The yield will certainly be missed.
I sold 25% today - to trade onwards.
There is no real evidence in today's large volume of trading
that a third party is trying to stop the Bidder from
building a stake at 72p.
I am a more recent buyer with an average of 58p so offers a 20%+ profit.Interesting however that another fund should see value @ 72p.The problem has been currency decline so do we take it that the bidder and the other potential bidder see things moving in the opposite direction?
The divi will be missed and as you point out difficult to replace.
They mention one, but also at 72p. Given that this is a property company I would expect bidders would carefully consider NAV and future cash flows so no all out bidding war is likley to develop, so I guess that this may top-out at 75-78 if we are lucky. Looking at my own, albeit small investment made in late 2012 the performance has lagged the FTSE 250, even after taking account of the strong income stream. I will be glad to be out, but finding something else witha safe and decent yield is difficult.
Overall my 'japanese' investments have been dissapointing in staerling terms as gains have been offset by currency depreciation. Of course I should have bought into a hedged investment fund. cheers
Another positive for me has been the debt refinancing in late 2013/early 2014. Now paying less than 1% p.a. which is vastly less than rental yields and loans have staggered repayment dates, first not due til 2017. All debt in Yen to match the Yen-based assets, so currency risk is just in the reporting currency of GBP rather than in the business itself. It is geared and therefore far from risk-free, but this could readily swing back towards 120p where it was pre-2007. With the share placement, it's a bigger business than it was back then and a full listing would make in investable for those precluded from AIM.
Recent RNS stating recent sale at 34% premium to latest valuation should be good news in my book, however this has not translated into a higher share price.
Does this reflect the wider Japanese economy or has no-one woken up to JRIC yet?
With a juicy 6% yield and rising property prices I am surprised this is not creeping higher, although the wider spread is a turn off.
Anyone with views?
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