The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
RogueRiver ,
Prior to the bid , CLG was trading at 240....well below highs of 400p. If there had been no bid for CLG and with the Conservatives winning the election , CLG would likely be trading at around 270p at least imo. I n that respect, any bid around 300p is ridiculous cheap and as you say, many institutions paid well over 3 quid. I'd be surprised if any bid came in below 320p and I think are fair price would most likely be 340p. Anything below those figures will likely be rejected or induce other private equities to bid . I think CLG is a strong buy at these levels with downside limited to 270 and possible upside to 340p. Needless to say, I'm buying at current levels.
I wonder why Sun Capital and Parkin have gone for a bid extension. Could it be that they realize circa 300p just isn't going to cut it and they will need to stump up a far more if they are to have any chance of persuading IIs to part with their CLG shares? Given that most IIs are averaging around 300p, any bid is going to have to be far more generous than the one mooted.
https://www.thetimes.co.uk/edition/business/clipper-sails-ahead-on-favourable-wind-from-online-returns-9l6ghzj5z
The Times have reported that other private equity firms have stated their interest in Clipper since the takeover approach was made public.
I wonder if the market has got wind of another bidder? Clearly, expectations are rising above 300p.
As you say, it could well be a ploy to attract a realistic bid.
From what I have seen in the disclosure RNSs, most IIs are averaging around 300p, so I think they will tell Parkin and Sun Capital where to ram it. 90% of holders need to vote in favour of any bid and, if reports are correct, Parkin can only rely on a maximum of 40%.
It seems the short sellers aren't taking any chances. Shorts are down from 3.6% to 2.3% as of 20 Nov. Always nice to see shorters getting their fingers burnt.
Was this as a result of the Wincanton/Eddie Stobart potential deal? seems coincidental that all this M&A activity is occuring at the same time. Hopefully, this whole P.E. deal is a ploy by Mr.Parkin and that he is in fact putting up an unofficial for sale sign out to prospective bidders like your DSV's and thus beginning a bit of a dutch auction . I can't see many being happy with £3.
No probs. I'm not one for conspiracy theories, but I'm not convinced there hasn't been some funny business going on over the past few months to keep the SP artificially low (which would certainly suit Parkin's wish to take the company private). The average of the last year simply does not accord with the performance of the company. Shorts are currently at an all time high of 3.6% and, mystifyingly, they have been rising as the SP has actually been falling to new lows.
Parkin and Sun Capital have to convince the other 60% of holders that parting with their shares is a good idea. Given that many IIs (and a good few PIs) paid around 300p, what's in it for them? Given the growth potential and the increasing yield, I certainly won't be voting for any bid under £4. I don't think I'm alone.
Thanks for the answer as well
He does control 40% of the voting rights, either through his shares or alliances. It could well go through closer to 300 than 500. I'm going to hold for now anyway. Will be interesting to see how it plays out
£5 is ambitious but not unrealistic. Any bid has to persuade holders to part with a share that has very good growth potential (e-commerce) and a 5% yield. I don’t think circa 300p is going to cut it.
Press speculation seems to think the bid will be around 300m, which is about the current share price. Why are people thinking 500m is realistic? Are we thinking a competing bid of 500m could be coming? Would they not build their position at ~£3 for a while first? Honestly asking
They would have to bid at least the highest figure the SP has reached in the previous 12 months (i.e. 314p in May). But that seems a pretty conservative figure, given that the real value of this company has been held back by Brexit uncertainty - and it was trading in the 400-470p range for around 15 months in 2017-18. If another bidder (say, DSV) were to throw their hat in the ring, £5 does not seem unrealistic. That would value the company around £500M, which seems reasonable. It's still early days though. Even if no bid is forthcoming, I think a Conservative overall majority in Parliament and a Brexit deal in the new year would almost certainly push the SP toward £5.
Seems the rumours were true and £5 plus would be a very nice xmas pressie. Is that a realistic T/O share price offer?
Br
Numis Securities has been appointed as its financial adviser. A potential takeover is now being discussed. :)
I have heard rumours within the trade that DSV Panalpina may be eyeing up an acquisition of Clipper, which would make a lot of sense, given that both companies have a large infrastructure in Europe. Hopefully they will make an offer us shareholders can't refuse - £5+ ?