I bought in rather late at 1.84, expecting there would be another offer. I logged in today expecting to sell at 222, and was greeted with dozens of RNSs from major investors. There must be a reasonable expectation of a better price for all those IIs to be trading this week.
U.S. activist investor Elliott Capital Advisors LP has amassed a 13.2 percent stake in British discount chain Poundland Group Plc, according to a UK regulatory filing on Thursday.
On Wednesday, Poundland agreed to be bought by South African retailer Steinhoff International Holdings NV for about $800 million, giving Steinhoff more than 900 shops in Britain, Ireland and Spain. It is the biggest takeover of a listed British company since a vote on June 23 to leave the European Union.
(Reporting by Rama Venkat Raman in Bengaluru; Editing by Richard Chang)
Motive? I can't imagine anybody buying at 224 knowing they'll have to sell at 222 in a few weeks time!
I'm quite happy about this offer even though I've lost more than a quid a share, at least it's cut my losses on what has turned out to be one of my more stupid investment decisions. There was no way I was ever going to recoup all my losses.
IPOs on AIM sem to be priced solely to satisfy the greed of the founder shareholders, a fact that I should have learned long ago!
"Commenting on the Poundland deal, Steinhoffs chief executive, Markus Jooste, said: Steinhoff recognises the strength and value of the Poundland management team and anticipates that they will play a key role in the ongoing growth and development of Poundland as part of the Steinhoff group."
Yes Frankobe, it does appear as if mgmt sold out shareholders to protect their own jobs and take their profits. I feel sorry for all those who bought at the IPO price of 300p. Hopefully, some of the institution hold out for more.
I believe he is obliged to bid at or above the highest price he has bought shares at in the past x? months, - and he probably bought some around 220 before the brexit vote.
Even at 220 I imagine it still looks cheap for him, since he is looking inward as a dollar investor, and the Sterling value of his original $ budget figure is probably equivalent to 250 by now - although obviously he's not going to offer more than he needs to,
He is clearly still interested as he continues to buy despite the Brexit result, so let him negotiate with Poundland management to see how much he is prepared to offer to get a board-approved bid.
Steinhoff finalises Poundland bid ahead of deadline
Poundland is being circled by South Africa's Steinhoff
9 JULY 2016 7:00PM
Steinhoff is applying the final touches to a £600m-plus takeover approach for Poundland ahead of this Wednesdays bid deadline, as it pushes ahead with ambitious plans to ramp up its UK presence.
The South African conglomerate is hoping that it is third time lucky after failing with attempts to take over Argos-owner Home Retail Group and electricals firm Darty.
Steinhoffs previous Poundland proposal was snubbed by the board. It is understood that management views the move as opportunistic following a turbulent year for the company.
Poundland could become a multi-price retailer if Steinhoff grabs the company
On the day of the EU vote result Steinhoff said it was considering its position on Poundland but has since continued to buy more shares taking its holding to 23.6pc.
Analysts thought Steinhoff would have to offer between 220p and 230p a share but Poundlands shares were battered in a post-Brexit retail sell-off and have been hovering around 180p.
It is understood Steinhoff is looking to turn Poundland from a single-price retailer into a multi-price chain along the lines of B&M Bargains. Analysts believe that selling a wider range at different price points would cushion it from currency swings.
UBS analyst Adam Cochrane believes Steinhoff would also have a chance to introduce concessions of its burgeoning discount fashion stores Pep & Co.
Sober reading indeed but probably as worthless as most broker recommendations.
Institutions now holding more than 40% of the shares bought in when they were floated a couple of years ago at 300p. Steinhoff is being opportunistic as the company suffers temporarily as it absorbs the 99p stores recently purchased. The lower pound is an added incentive to proceed with the takeover at this time.
"the final take-out price is not likely to be much more than 10% above the 195p Warburg achieve on Friday."
The big shareholders will be laughing at Beaufort's conclusion. They'll be looking to recover at least the 300p takeup price.
"Sober reading. The Group's message appears to be that the UK poundshop 'party' is now drawing to a close, that approaching saturation means organic growth profits are harder to win, that shoppers are getting a little bored with the repetitive high street format and that the much anticipated phase of consolidation must now accelerate. With Q1 sales patterns following recent trend, a tough 2016/17 is foreseen with continuing negative like-for-like sales growth plus further disruption as converted 99p Stores bed down into the larger estate. In the absence of further consolidation amongst remaining national chains and accelerated closures within the myriad of competing sole traders, however, a return to positive comparatives might not even be possible next year. Indeed, the year-end statement's cautionary tone could even be enough for shareholders to believe Jim McCarthy is about to recommend throwing in the towel of independence. Which might well now be the case. Steinhoff International Holdings NV, the integrated retailer that sells, sources and manufactures household goods and general merchandise in Europe, Africa and Australasia has, of course confirmed it is considering a possible offer for the Group's entire issued share capital. Steinhoff, the US$22 billion furniture conglomerate which has lost out in two high profile takeover battles already this year, said on Wednesday it had acquired 22.78% of Poundland. Under UK takeover rules, it now has until July 13 to announce a firm intention to bid for all of Poundland, whose main shareholder had been private equity firm Warburg Pincus until confirming on Tuesday that it had sold down its 15% stake. Although there appears no obvious strategic or operational fit between the two groups, ultimately they are both elementary, branded, discounters that throw-off plenty of free cash flow. Given that Poundland operates in an overpopulated sector which offers just about zero barriers to entry and little customer loyalty, it is hard to see a counter bid emerging. Should Poundland management now donate their holdings to Steinhoff as well it's holding will, in any case, find itself close to a blocking minority. Warburg Pincus originally floated Poundland on the London Stock Exchange at 300p per share in early 2014 and the shares peaked around 420p a year later; this bubble has, of course, since burst and realistically, the final take-out price is not likely to be much more than 10% above the 195p Warburg achieve on Friday."
"In accordance with Rule 2.6(a) of the Code, Steinhoff must, by not later than 5.00 p.m. on 13 July 2016, either announce a firm intention to make an offer for Poundland 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 Takeover Panel in accordance with Rule 2.6(c) of the Code."
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