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In times like these Opportunistic investors (Asset strippers) , who are faceless, creep out of the woodwork. I am under no illusion that the bid will meet the expectations being posted.
The company has a huge debt pile, Ralph has got to face bondholders again in April ( the outcome has already been decided at the last meeting). He will be all to well aware the ongoing lockdown, with not certainty of an end, is putting the company on a ruinous course. The Brain's management agreement due to commence next month is unlikely to reap the rewards expected. The whole hospitality sector is in a mess , only those with robust balance sheets will come through to sunnier times.
Those who have got in below 75p may be saying "on no account will I sell". Lets see, Money talks.
The SP has been barely above 1.30 in the last 3 years when an excellent dividend was payed. We are in different territory now, so do expect mega bucks.
I think the same as you on price. I am a lth and used to receive £2300 a year divi on my holding a couple of years ago. Was always a good divi. I sold out at 130p ish and then bought back in before COVID unfortunately, but now have 94p avg. I hope Ralph doesn’t let it go cheap, I’m gonna miss the divi’s if it does sell. But I’m more than happy not to sell and reap the rewards over future years.
Bought in for long term investment, dipped in at various prices along the way up to 50p, looking rather healthy indeed with the jv in place. Really hope they stick to their guns after seeing/hearing their 5 year plan, bolstered up no end so can’t wait for the pubs to open and see the SP climb.
Cant see this happening with the joint venture with carlsberg already a done deal . A case of to many cooks spoil the broth.
Bough some at 85p as an opportunistic bet that a decent takeover premium will be paid. Down a grand already so not v well timed. (Serves me right)
Can’t see them accepting any less that £1.3-1.5 as would easily recover to those levels post Covid imo with the additions of Brains and the Carlsberg JV.
Much better business than pre Covid
What do the long term holders think/ want to happen?
William Hill was different in that Caesars had an ace up their sleeve, which meant that no one else could bid. This is different and other PE could look for a piece of the action. They have been alerted now that it is for sale.
I still think the best thing to do is reject the bid, management are doing a good job and the long term recovery, once pubs reopen, should take it well past £1.50 per share, with good dividends on the journey.
We might as well put a big for sale sign on the whole of what is left of British processing and manufacturing industry . The Government , if only we had one , should say a BIG NO to any take-overs during these difficult times. These people are asset strippers. We will survive once vaccines are fully rolled out . Leave us alone ! ( Long term holder)
VC companys may be flush with cash, they also know there is going to be a huge number of virtual destitute companys for sale in the coming months
Well that's what many of us hoped with William Hill, hanging about waiting for another bid, our money tied up, when we should have got out and got our money into another recovery prospect.
Private equity has a ton of money. They rather missed out before and were too cautious last year. Now with Covid end in site they are looking to do deals galore.
Yes agree , once the covid scale tips and everything begins to pick up , Mars will/would boom ,
now this sword of damocles has turned up
it’s bad news for the pi,s ( long term holders )
Obviously some will like a quick profit
What we need is another bidder to push the price up, anyone got a spare billion or two?
Does anybody think that PI's might be shafted as we were with William Hill? Well, not totally shafted if you got in when they dropped last year, but Oh! the loss of expectations, when we had hoped they would double over the coming months from the 2.25 they were at (about) when the bid came in. I was hoping that MARS would double over the months when pubs are open again.
The Board of Marston's PLC ("Marston's" or the "Company") notes the press speculation and confirms that it has today received an unsolicited non-binding proposal from Platinum Equity Advisors, LLC ("Platinum") regarding a possible cash offer for the entire issued, and to be issued, share capital of Marston's (the "Proposal").
The Board will evaluate the Proposal with its advisers and a further announcement will be made in due course. There can be no certainty that any firm offer will be made for the Company, nor as to the terms on which any firm offer might be made.
In accordance with Rule 2.6(a) of the Code, Platinum, is required, by no later than 5.00 p.m. (London time) on Friday 26th February 2021, being 28 days after today's date, to either announce a firm intention to make an offer for the Company 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 can be extended with the consent of the Takeover Panel (the "Panel") in accordance with Rule 2.6(c) of the Code.
YoYoMa agree, let's see their money on the table. The eye-watering numbers being banded about would be great, but cannot see 1400 pubs/accomodation properties adding to the figures stated. The Carlsberg deal is not so easy as some think. Remember, apart from the conditions within the agreement, Carlsberg have 60% control of the breweries. Experiences of Cadbury and GKN maybe good for PI's in one way but not sure longer term managers and staff will feel comfortable.
Any mention of Brains is erroneous, that is due to complete next month and is only a management agreement. Brains retain the Dragon Brewery and all of the pubs
Sold out at 71p recently.....bought them back at 85p today. I cannot think they would have offered just a few pence about mkt price. The Carlsberg deal brought in a lot and it is a lot of business in total here. So I reckon 125p is possible. Friday, lunchtime rns, big red day.....may get noticed over weekend
If it’s anything like my experience of the AA takeover
they offered 40% more above share price ie yesterday end of day price 75 pence ish + 40 %
= £1.05
Hope it’s higher than that , otherwise on yer bike !
Stocko has EV of £ 2.11 billion ie market cap + net debt.
Not sure it's comparable in anyway to Gamestop YoYo, with respect. Marston's are likely to do well, with or without a buyout once the pandemic is done. They have survived and they will pick up market share from those who ain't. I think Platinum's behaviour is clearly opportunistic but they aren't buying Debenhams. They are going to have to pay if they want the pub chain and they may have competition.
Bloomberg article is here. You'll have to copy and paste.
https://www.msn.com/en-us/money/companies/uk-pub-owner-marston-e2-80-99s-receives-platinum-takeover-approach/ar-BB1dcSbX
£2.2 billion is the net 'enterprise' value! Sorry- not the net book value. Don't know how they work it out. 1,400 pubs? The brand for their own brews? The £780 mill joint venture and the value implications of this when it is applied over several years?
But Platinum does seem to get their hand in their pocket quite nice and deep for takeovers.
Bloomberg seems to think that the city think some-one else might want it. Who knows. Quite exciting really. I hope a big UK firm fight it out for us. Did Greene King end up getting fought over in a bidding war? Already had 2 UK pub chain buyouts in the last few years. This article also reminds us that Greene King went for over $4 billion.
Thats a lot of money considering the value worth is just 540m (Market Cap) so be interesting to see where the other money is. Personally I think there is a strategic game going on as this comes weeks after the SA Brains deal and I am sure they (MARS) would of done before this came to light, also it's unsolicited (could be a pump and dump like Gamestop)
Tricky where is the net book value of £2.5billion?
I don't think they will wait that long. I give it anything from 3-9 days depending on how the offer is received and how generous it is. As has been observed earlier Bloomberg say we'll get over £2 billion. Their last acquisition was for more than that. They have money. Marston's has a book value of at least £2.5 billion.
We'll soon see. I think we will get between £1.30 and £1.50 at the lower range. But could be higher. They want to make sure the board recommend it.
Business Desk must be wrong Davey?
If your information is correct a suspension is likely.
well said
this is why our once great proud uk has in modern times been infiltrated and even controlled by them.....what is even british these days is getting less and less
look at energy companies as virtually all are foreign whether in england or scotland.....airports too....spanish banks taking over our better part of our banks but british taxpayer saddled with the debts
our corrupt politicians on ALL parties have screwed our country
china has infiltrated most of western world whether technology (Huawei, ZOOM, telecoms etc), our universities, compromising our politicians etc