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Quite relaxed Jatw and not that bothered if KKR decide to walk away. Bought yonks ago at under 200p so happy to wait for someone else to come along. Likely sooner rather than later now that BoD have indicated that they are willing to recommend an offer considered underwhelming by some.
What does the softening share price indicate?
Take your pick from:
The deal is not getting done at this price.
The deal is getting better by the day and will succeed.
Will there be a revised offer on Monday?
HL has set a date of 16 Jan to vote on the current proposal…….will be waiting to see what happens over this weekend…..not that PI votes will count for much…..
Jatw
You'll be fine. I sold a few on 22/08/22 at 956p so the bid of 955p is underwhelming. A result of higher borrowing costs impacting the borrow cheap, install meters, enjoy the income stream model that pushed the price to 1000p around that time.
My view is that the dissenters should be able to gain support to over 25%. if that happens the offer could be sweetened and another of the various possibilities is that KKR walk.
if that happens another suitor will arrive on the doorstep sooner rather than later
Best of luck
Lmds
I have thought some more on this and think the most likely outcome is a sweetened bid….although not by much as that makes KKR and the Board look silly. I have added this morning at 944. If I only get 955 then the deal will more than cover its costs.
You are not in an empty room Jatw, I read and agree with your points, though KKR may not get their required 75%. That could lead to them bidding at the same level and only requiring 50% . I suspect there will be a modest sweetener to smooth things over
So there is a two week delay.
The announcement states no other indications of interest have been received….and the Board wants to progress the deal.
I doubt that KKR will want to go much higher, I would think £10 including the dividend is a likely maximum, so 5% uplift may come forward next week.
If the deal proceeds on current terms, then there is only a marginal gain to be had by getting back in.
If the deal is withdrawn, then a fall should be expected…..it will be a deal delayed and should return within a year.
The meetings on 9 Jan are going to be adjourned.
The votes for the deal must be uncertain….you pays your money and takes your chances as to whether the bid will be increased or be withdrawn…..
It is a game of chicken at the moment, maybe someone with a detailed knowledge of the AIM takeover rules could comment on what happens if the bid gets a 70% vote.
Any further thoughts about how this could play out?
Furry - have you bought more in the hope of an increased offer?
I thought 959 was a good market price given the bid and sold 50%…..now thinking of buying it back…..it is a case of 963 if the current deal goes ahead 1000 or more if the price is raised or back to 700 (until the next bid).
Well i've voted against it as it's too low an offer in my opinion and should be nearer 1100.
See what happens but hopefully we get more for the business.
Is it enough to derail the bid? Judging by the Sp reaction I think so. I would buy more on any fall.
Or is it all over……17% shareholders are disappointed with the offer - they will have a price.
I wonder how much they will settle for….
Wow British companies are dropping like flies, what a mess this market has become, well done holders here
Up 41% on take over offer.
5 Analysts expect the price to increase by 74%. yesterday from 680p to 1185p share price was 643p Monday 3 days back .
Some knew about it .
Lots of funds hold 7th largest Soros Fund Management 2.74% , largest Liontrust Investment Partners LLP over 14%
Smart Metering Systems stock soars on GBP1 billion takeover offer
Thu, 07th Dec 2023
(Alliance News) - Smart Metering Systems PLC on Thursday said it has agreed on the terms of an all-cash private equity acquisition that values it at approximately GBP1.4 billion.
SMS said each of its shareholders will be entitled to receive 955p in cash per share, under the terms of the acquisition. The offer values the firm's entire share capital at approximately GBP1.3 billion, which SMS said implies an enterprise value of approximately GBP1.4 billion.
Shares in the Glasgow-based utility connection, smart metering and energy management provider surged up 41% to 958.00p on Thursday morning in London.
Shareholders will still be entitled to receive and retain the 8.32p per share second interim dividend, which SMS declared in mid-September.
The acquisition offer comes from various funds advised by American global investment firm Kohlberg Kravis Roberts & Co LP, and its affiliates. KKR, Smart Metering said, will invest in the takeover largely through its USD17 billion fund KKR Global Infrastructure Investors IV, which is focused on critical infrastructure investments with low volatility and strong downside protection.
"KKR's offer recognises the strength and resilience of our model and will ensure SMS has the necessary capital to accelerate and unlock its full growth potential," said Tim Mortlock, SMS's chief executive officer.
By Emma Curzon, Alliance News reporter
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Didn’t get below 600 which was my buy target! lol!
Looks like at last someone has valued this ‘property’ correctly. One min it looked expensive next was cheap!
Perhaps that accounted for the up and down sp!
Still another bites the dust!
Usual caveats
Trek
Another takeover of a £1bn entity on the UK markets….it it sad in some ways, but a decent price has been paid.
IMO This has been a deal waiting to happen once the Directors realised the market did not really understand them….this asset rich but cash hungry company needs feeding so the PE guys will be able to issue lots of private credit backed by the installed asset base to their other funds.
Have enjoyed the divis which I always recycled back in so was happy to hold. However this is a decent offer and I have done well over the years so happy to look for the next project.
I've had this stock since 2017 and missed two peaks at around 900p I sold out finally in February at 913p. My concern is the dividend will be cut after 2024 as its not well covered. What does everyone else think?
Hi Craig,
Not at the moment. I have traded this one and won every time! Atm I am out but would only look to buy if I had a pot free which coincided with an end to the downtrend here.
I thought the interims were good but they haven’t really done enough to justify the high pe of 51 which makes this expensive imo. The battery side is pretty small and the meter growth hasn’t really blown the doors off like I thought it would.
If in profit I would sell as may get back cheaper or at least sell half and feed back in lower. The yield here at 4.86% even with 10% yoy growth isn’t brilliant there’s better elsewhere.
The inflation increases are however an attraction.
The 5 year chart has this going below 600. I reckon you can get 590-570 with patience. Then sell again from there hopefully 650. But not one to chase. If you get mid high 500’s suddenly the yield becomes more attractive.
Good luck
Usual caveats
Trek
Broker rating at downgraded to 660, liontrust still offloading?
I am adding more when I can, plenty of director buys at over 700.
@trek you still in here?
Not looking great here, the SP has took a battering.
Could we see under £6?
Half year report tomorrow.
Let's hope for good progress.