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Joe do not let sentiment cloud your judgement. Going against the sector's movement after the analsyts presentation makes you think??
Share price seems to be stalling while other pub stocks are rising. Has this hit a ceiling I wonder? Will it still be lucrative when everything reopens next month?
True, acquisitions can be a big set back for companies sometimes. Nevertheless, I like to be the optimist and think that the popularity of Brains pubs in wales will prove that it was the right decision.
Trent
Indeed !
I don't see any compelling reason to take on poorly performing pubs when the board is concentrating on squeezing what they can out of their existing estate. Time will tell, that's just my gut feel.
Barchid. Rude not to mate.
You think the Brains deal is a bridge too far then?
Fairdealer
Going "pubco" definitely reduces nav, no question, and the issue which is to me relevant is in the Carlsberg deal we lose control, going from 100% ownership to 40% which is a steep price to pay for reducing debts incurred by management in expanding their estate when times were better.
Imo, the jury is still very much out on the Brains deal, in part due to the misplaced expansion Mars made earlier with debt we are now saddled with at an onerous, irreducable, interest rate.
This to me puts clouds across the blue skies which many posters seem only to see.
Trent
Congrats to you on the schools re-opening !
Next stop pubs ?
Good morning Trent, it will be healthy to see others take on events , strategies and the method of keeping Shareholders informed.
I'll not advance my views now, let's see what others think.
DYOR
GLA
Thanks for your input Fairdealer. Your points are certainly food for thought. I'm sure that other points of view will come in on the back of this over the course of the next few days. Im looking orward to reading and analising all of them.
Thanks Trent, was looking at the Company's website so missed your link.
Interesting Presentation, moving to a Pubopco does release cash to pay down debt but ultimately, imo, reduces NAV.
Seemed so unease when asked about the Dragon Brewery, which is not of interest to CMBC, Brains do have the brewery for sale.
As thought and now confirmed Brains were desparate to do a deal and no doubt saw the Platinum approach as a threat hence the hasty completion.
It was disengenuos to confuse the presentation with the state Management Agreement. They are 2 entirely separate matters, the Man.Agreement is a Contractual document which shareholders have still not seen.
It is now clear Marstons are to pay 2years rent in advance where as earlier information stated 6 months in advance. The 2 years rent amounts to £11m which will be covered by Freehold disposals.
The Completion agreement with Brains on 5th February confirmed 156 pubs would be managed, now even though there are an additonal 10 Leasehold Pubs there are still 9 pubs missing from the original count.
The answer regarding Dividends was answered that the BOD were minded to review later, No mention that Bond Holders have explicitly conditioned No Div payment for the current financial year. This is likely to be further postponed when the agreements are reviewed next month.
Moving towards a Pubopco model may increase profitablity but will diminish asset value.
I have probaly said enough so maybe others can make their views known.
AIMO
@ Fairdealer.
The only link I found is the one I included in my post here, which was included in Ralph Findlay's email to me.
I've not minded doing it. I know that most of you work, whereas being a carer, when ur children have got off to school, I have quite a bit of free time until they come home again, so it's nice to have something useful to do, and it only took 10 minutes.
But nevertheless, as a shareholder here, this is kbowedge worth having.
Trent, Barchid, can anyone find the video link RF refers? The graphic presentation is on the site, which is what I discovered on Friday.
IMO it is a Red herring to state the Bid situation prevented the Management agreement being released, the Presentation is not what Shareholders were promised. RF may just as well stated the Completion of the Brains deal was delayed because of PLatinum's bid position.
If anyone can find the video, please give directions. I have explored the Company's website.
Hi Trent, have just arrived home and will study the reply ( which was swift) and presentation video RF refers.
My initial reaction is why are Analysts informed before Shareholders??
Will study and comment later.
Well done for your efforts.
All this good news makes me wonder when we'll properly stay above the £1 mark... seems as if there is a gradual increase nevertheless
No problem Barchid.
I've not had chance to go through the whole video as yet but if anyone has, (I'm guessing that ClaireSmith has) but I will as time permits, but those that do, I'm sure we'd all like to see your thoughts.
I hope i've managed to get some answers for you ll.
looks like they have weathered the worst times, and if anything are in a stronger and better position, with plans for long term growth and balanced portfolio. looks like marston is a golden
Trent
Good work and appreciate you keeping us in touch.
RF does respond swiftly, I noticed that when I was mailing him re debt a while ago, as you say, can't fault him for that.
key point from the talk:
"above 90% have outside trading areas.... reasonably more than half the estate open trading in outside areas from 12th April"
"invested £2m in inside outside spaces... puts us in a strong position with regards to April reopening with regards to our competitors"
Looks like they are ready to go, and have done a lot to hit the ground running.
This is another reason I like this share (apart from the Hobgoblin Gold).
This is now the 2nd time I've contacted RF, and he did get back to me in a reasonable time with an answer.
Can't fault him for that. Happy to hold here LT.
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Marston's/Brains
R
Ralph Findlay
to me
39 minutes agoDetails
Dear Mr Bradshaw,
If you look on the Marston's PLC website under 'Corporate', and 'Presentations', you should find a video link to the presentation given to analysts on Friday morning. As I explain at the beginning of the presentation, we were not able to give the presentation previously because of the potential offer situation that existed at the time of completion in February, which is when we had intended to give it. The link is also here:
https://vimeopro.com/instinctifpartners/marstons-brains-transaction-update-5-march-2021
The presentation gives details of the transaction in some detail, and sets out the details behind our plans for the core estate of 107 pubs. You can also see/hear the analyst questions, and our answers.
On the subject of the Platinum offer, I am pleased to hear your view on valuation: I, and the rest of the Board, agree with you.
As to whether the previous offers should have been disclosed by way of an RNS, that will always be a matter of judgement: there is no requirement to do so under Takeover Panel Rules unless there is a sharp change in price. If that happens - and it did - it indicates that there is some market awareness . Usually, it comes about through a leak. Such an increase in price did take place on the day we received the third proposal, and our RNS was issued within an hour or so of that happening.
In any situation like that, there are clear but complicated Takeover Panel Rules, and they must be followed. You can be certain that the Panel would have been aware of this process from the very first point that a proposal was made. There are several good reasons why approaches may not be made public, including reservations about value, about deliverability, or some uncertainty in a due diligence requirement. That changes if the approach is leaked, as I have described above.
You should also be reassured that in any situation like this, a Board must take independent advice, and must satisfy itself that it is acting in the best interests of shareholders. As I have noted, that consideration is not solely about value - though that is obviously a major factor - but extends to concerns about whether a proposal made 'subject to' can and will be delivered as proposed. In our view, the Platinum proposal did not meet the first 'valuation hurdle', and was, as you know, rejected.
Finally, I am also pleased to hear that you have enjoyed the service in Marston's pubs. If it is Stourbridge you are referring to, than that is probably The Glasshouse - we have a very good team there, which is what always makes the difference.
Yours sincerely,
Ralph Findlay
Chief Executive Officer
Dear Mr Bradshaw,
If you look on the Marston's PLC website under 'Corporate', and 'Presentations', you should find a video link to the presentation given to analysts on Friday morning. As I explain at the beginning of the presentation, we were not able to give the presentation previously because of the potential offer situation that existed at the time of completion in February, which is when we had intended to give it. The link is also here:
https://vimeopro.com/instinctifpartners/marstons-brains-transaction-update-5-march-2021
The presentation gives details of the transaction in some detail, and sets out the details behind our plans for the core estate of 107 pubs. You can also see/hear the analyst questions, and our answers.