Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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They've done it through CFD though, so presumably nowhere near 100% of the cost of the underlying shares tied up.
Seems a strange way to tie up money for a good few months (assuming it will be a while before the sale is finalised and everything gets paid) for a slim chance at a counter offer or a more likely potential (albeit slight) loss! Think this is just me hoping they know something about another offer coming in
Although given the price they've paid (0.25p over the offer price) they would only be down £20k or so if the deal goes through at 350p. So perhaps they are more likely to accept the offer if there's nothing else on the table and they see it as just a cheap but out-of-the-money option play (although still with the risk for them in that scenario that it does get voted down even if they support it).
I read the same into that Bloomberg article, matth. But that wasn't a "final" offer by the look of it and so could be sweetened to win approval.
I would assume SG think fair value is more than 350p, but here they can't lever up the price as I understand the takeover code rules, unless there is a counter-offer. I have to think Octopus thought a counter-offer was unlikely. So does SG know something that Octopus doesn't, or is SG prepared to dig in for the slightly longer-haul and vote the deal down (probably taking a near-term hit on the shareprice) in order to promote a more rigorous sale process over the following months? My earlier assumption was that an arb player wouldn't take that risk and would vote the deal through if that was all that was on the table come decision time. Now I'm not so sure, given the size of the position they've taken.
And it appears sand grove voted in favor of a takeover at 57.6p per share as opposed to the 55p initially agreed, are we to assume they would be against this current offer?
Appears something similar played out on Ophir recently.
"Hedge fund Sand Grove Capital Management LLP has almost tripled its stake to more than 17 percent, according to regulatory filings."
"Medco’s CEO Lorato said the shift in holdings isn’t surprising. “These are normal changes, the one you see, in a situation like this -- for example arbitrage funds that would like to take a position. These are what I’d call event-driven funds,” he said."
https://www.bloomberg.com/news/articles/2019-03-05/ophir-is-said-to-face-investor-opposition-threatening-medco-deal
11% position for Sand Grove, by CFD! "The firm employs a traditional, European focused event driven strategy"
And it was Sand Grove who bought them. That is interesting.
Daily dealing disclosure to show that that is the Octopus number. 7,450,653 held as of Friday.
7,450,653 share trade gone through (and another one at the same price for 7.4m, presumably the other side). Octopus' last declared position was 7,456,274 shares as far as I can see.
So Octopus moving the holding internally, or have they sold? And if so, who's buying 10% of the company and why?