London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Your concerns must be shared by thousands of shareholders.
This should have been called the Whitbread Costa lottery because you will have to take a gamble on selecting the correct option. This is unfair. this should have been organised whereby, no matter of your expertise in share dealing, WE ALL SHOULD HAVE RECEIVED THE SAME 'DIVIDEND' and a share reduction ie 6 for 10. At this stage the board have wasted £400+ million on a buy back and (probably) millions on advisers and brokers devising this utterly appaling mess.
First, re your last para. The several tender options where set by Whitbread not by a broker. So, your broker is breaching the terms of the offer.
Your broker should have sent you the full offer details from WTB which contain a detailed description of the 'Strike and VWAP'. But if not, you can get a copy from WTB.
The final prices will be calculated on 19 July 1pm based on the preceeding period market prices.
The options have overriding caveats to safeguard over subscribtion.
No one can give you firm advice other than to say; if you think the hotel business will grow and deliver profits then keep all of your shares. An umbrella approach is to keep some and go for a couple of options - sort of an 'each way' bet which is what I have decided upon.
So does anyone actually understand the tender offer? I have 4 days to make up my mind, and I have no idea what to do...
I have 3 options... Sell at the 'strike price' (which is determined after the fact, by WTB)/ Sell at VWAP average price + 1-4% extra/ do nothing and keep shares.
Can someone help me with the following?
1) What is the difference between the 'strike price' and the VWAP price?
2) Why would anyone pick for example, VWAP + 1% rather than VWAP+4%? Surely everyone would want as much bonus as possible so I don't understand why you get the option? If you pick VWAP+4% are you less likely to achieve the sale of your shares?
3) Any thoughts on what people are going to do? I really have no idea on what the best strategy is, but i'm leaning towards selling as i'm not a fan of how the whole sale to coca-cola has been handled for shareholders, including this tender.
Also, annoyingly my broker has sent an update after the original tender stating that the option to tender only part of your holding has been removed, it is now tender all your shares, or none. Would have liked to go 50/50.
After the shambolic way the board have handled the 'costa' affair, I take back all my criticsm of Theresa May. In comparison, she is a financial genius.
Who pays the dealing cost?
I don't approve of the offer but I might tender 1 share at plus 4% take the £45 quid and buy a meal at Butchers Block at my local Premier inn and claim the 10% shareholders discount thus getting 14% back.
Hopefully if they have lots of "offers" like this they will realise what a cock up this as it will cost them lots.
So, what are our thoughts on take-up?
Is it time to get out with a 4% bonus? Or will the share price be kept artificially low due to reduced demand for shares until the tender offer is all sorted?
sell over £500k of shares a couple of months back?
i seriously doubt it was because they had some 'urgent' family business to attend to... more like they saw that £50 was the high point...
never trust an sp when the CEO (and family) sell out.
from world class asset to supporting weak sp on bed and breakfast biz... they've become the seaside landladies of the ftse.
Yup, Whitbread has become yet another slowmotion car-crash, like Tesco, M&S, Jaguar, etc. If you're shrinking in the good times, you will collapse in the bad times. When the next UK / EU recession arrives, in 2020 or 2021, Premier Inn will slump. Not even Lenny Henry will be able to stop it. They should never have sold Costa. People are addicted to coffee and caffeine and always come back for more. Cheap hotel beds, not so much.
Awful results. Q1 sales down 5% even though economy growing and unemployment at record lows. Been wasting their money buying back shares at higher price than they are now. Should never have sold Costa. With airbnb gaining popularity hotels are in trouble. SELL
Whilst there are short-term headwinds, the longer-term continues to look good. Premier Inn enjoys the best rating amongst hotel users.
I have been a loyal Premier Inn customer for years but very seldom now stay in their hotels. Their kids go free offer usually means noisy rooms with thumping footsteps from above, badly behaved children in the bar until late at night and the cleaning staff have to work extra hard to get the rooms back to standard. The restaurant menu is unappealing to older people too rich and spicy, and the cost cutting programme which their CEO appears to be so proud of means so few staff that customers wait for everything. I also suspect prisons have less worn out towels.
I think this will be the first of several profit warnings. Their offering just doesn't appeal to those of us who used to stay, and much more importantly spend money in the restaurant and bar. Sell
Just got a notification from my bank. Seems totally unclear and a lottery as to what price, unless they publish a strike price. I'll either sell before or after this mess as I think the rump of the Company is being mismanaged and going nowhere.
Life was much easier with a slate and a chalk ,I find my fingers too big to press the buttons on the modern phones , and difficult to see , despite going to Specsavers . I also agree with all your recent posts.
correction £500 mil spent on buy backs (bloody phone)
Sorry ;;;;;;;;;;;;;;;;should be £5mil spent on buy backs
I just do not understand all the paperwork I have just received , and the size of print is so small , one needs a magnifying glass to read it. Why not just a special dividend , and be done with it. I incidentally was totally opposed to the sale of Costa, finally we had something worth owning . Typical of Whitbread , give everything away , what a stupid Company!I am not bothering to fill the paperwork in.Others I feel should do likewise, any ideas ? I agree with Evie.
If the amount to be distributed is £2.5 bil and £5bil has been spent on buy backs and £2bil is allocated to the tender offer what is going to be left if you do not take it up?
Think that is about right. have just e mailed matt.johnston @witbread .com asking him to publish a simpler version for small shareholders hope other people will do same.
I agree I am not voting for it I require my right to having my share for the selling of costa as a special dividend
Based on my past experiences with tender offers, my interpretation is WTB will purchase your shares for no more than £50 per share which based on todays price = 'profit' of £3.61 = 7.8%. Thus price rise today. This proposed offer has to be approved at the AGM. I will not vote for it. However, if it's voted through and the offer is not fully taken up then they will move to phase 4 and probably redisrtribute the residue via a 'spec divi'. The initial two methods are more tax efficient for possibly the majority large shareholders
Gobblegook it is. Sure as anything it will be the geeky quants and their paymasters who will benefit from this. I certainly don't feel I have got anything from the first phase of the so called cash return to shareholders.
Just give us a special dividend FFS!
I'm not surprised that four hours after the RNS was posted, there isn't a single comment from PI's. I've been risking my money on the LSE since 1964 and this has to be the most complicated piece of gobbledegook imaginable.
I just want to lighten my holdings. I don't want a course in higher mathematics from some geeky quant, who wants to teach me all about VWAP's or some other incomprehensible concept.
Anyone know where Albert Einstein is buried? I think I need his help in working out what price to tender at.
Coming soon to all shareholder voucher holders. Should get your card soon.
looks like some folk (there's always someone) are getting irked by the single track direction of WTB sinking all their prospects into premier inn and wanting a sell of of at least some of the assets (again) as sp's in danger of stagnating.
not sure the ceo is strong enough to push her plans forward in a positive way... looking like a weakness in sp is going to become more apparent into agm...
the fall this week just makes a mockery of the £500mill spent so far on buybacks... and with the short term looking more than a little suspect, the idea of becoming a one track business is making the share more susceptible to bad news... we've lost the varied pf we had... i'd certainly be happier to see them duplicate the coffee expansion plans... but not by adding hotel chains in germany, from scratch. massive investment with, i'd imagine, a couple of years to wait for realisation of plan.
meantime, pi's are going to abandon the share, even if the pensions don't.
buy pret a manger or similar and repeat costa... makes for a better synergies with premier...
Looking out 18 months, we have a growing debt-free profitable business which may well attract a takeover. The BoD having extracted an appreciable gain from the sale of Costa, may well repeat that with a sale of the hotel business. All-in-all a good company to be invested in, despite the short-term, relatively modest, trading issues.