Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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if CD/ R get to own 30% of the shares they have to make an offer....
rollthatdice...if PE want to take this company over then they have to get acceptance of about 70% of the shares. Thats when the other big holders will aid the PIs...they will hold out for a "high" price so that it is worth their while letting PE take the business private. The lowest offer price cannot be lower than the highest share price paid by anyone in the last 12 months.
On 16/12 last year the price was 129.20...you could argue there are twice as many shares now...so halve it. The least we can be offered until Dec 16th is therefore 65p
So we are reasonably well protected...for 6 months or so
So relax, settle in for the wait....is what I am doing. The share price for the next 6 months is irrelevant to me
Thanks Wilmsy I’ll take a look.
If CD&R takeover at this level what is the likely return to current investors ?
What was the done deal there wilmsy? Were share holders stiffed? Was it a similar story to what has happened here?
Raleigh - you are right. The business will be delivered in to the private equity hands at a knock down price - low 30’s. Buy it out for £300m and turn it around in three years and sell off for £900m - tidy profit on that......The key mechanism is the 25p entry point for CD&R....that is a woeful value extracted by Francis. Period.
Would IKO buy in if they thought CD&R were going to drive the SP into the ground? Surely they’d have an excellent understanding of cd&r plans if they were thinking of a buyout. Just thinking out loud
I concur on construction. Housebuilder's performing strongly - but this is going in the opposite direction. I too, had expected something more positive in the results verbiage - quite lacklustre.
I cannot now get back into that link myself. But there are other articles - the essence being CD and R's cornerstoning could be seen as a first move on a subsequent Private Equity buyout.
My thoughts at that stage being that IKO and so on would be as aware as everybody else.
The pipe deal always gave grounds to consider a subsequent PE buyout. Just one of the articles at the time.
https://www.fnlondon.com/articles/first-uk-pipe-deal-in-10-years-on-the-cards-for-clayton-dubilier-rice-20200529
I had not thought it would be this early. However, why pay more than you need if you can subsequently turn it around for your own benefit.
I'll see you all in 6 months. I got in nicely under the placing price...it's a turnaround. Get away from the screen and take it easy. There is short term selling pressure and we are having a crap overall week. I think my purchase will come good soon. Patience all
PE are all about ownership and control - they do not do the half in half out. The clever bit in so far as I can see is the fact their man Francis allowed them to obliterate the share price to 25p for 25% of the company. That was the first I scratch your back etc.... He then puts out a less than encouraging RNS and states the rest of the year will be as bad. All the shareholders then get frustrated at the low price and drifting - and then bingo an offer comes in from CD&R for heather balance at 32p based on a languishing share price of 24p - 26p.......All I do is repeat myself here - the barbarians are already through the gate........