Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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The fall is totally predictable. The high activity funds who are making a fortune from PIs voted against. We will get sold down below 48p is my opinion as that is where we were before this started. They will also vote against a managed wind down.
So so disappointed that a small number of funds voting can block this.
Incredible. Within a year we would have been back on 65p to 70p equivalent with CREI. We may achieve that, but you can be sure the funds that scuppered this will look to pick up cheap shares here. Probably the reason they did this.
Also blame some of the platforms who don't allow easy voting. One of mine did, one didn't. Luckily only a small holding that I didn't vote on and wasn't worth the hassle chasing.
An interesting end to a damp squib of a takeover battle. The value offered by CREI and suggested by SHED just wasn't up to snuff.
With a portfolio including 54% industrial and 16% retail (retail warehouses in the main), and in an environment of lowering interest rates, management should easily be able to improve on the current 32% discount to NAV through a wind down. If this dips tomorrow morning I for one will be loading up. DYOR
Its an odd situation where theres a majority for the deal but it doesnt pass.
What happens if the 61% who voted for the deal also vote against the managed wind down? (as i will) (does that just need a simple majority to pass?)
Well that's a kick in the nuts so to speak, I hadn't expected that! It's not a slow winddown, I wonder how the market will react tomorrow!
It got the Thumbs Down from API holders.
Further to its announcements of 14 March 2024 and 20 March 2024, the API Board will now take steps to implement a Managed Wind-Down subject to the approval of API Shareholders at a general meeting. More information on this process will be set out in due course.
Does seem a bit odd i agree
Surely they would have totalled the votes before the 10.15 shareholder meeting, and added in votes from attendees?
Someone must know by now.
I guess as long as this gets approved Wednesday, that CREI will enter the FTSE 250 at tge next assessment. That will attract more institutional buyers. Something we're lacking as too small and listed on AIM.
Totally agree with the API BoD assessment. I guess if you're a day trader or are short here you'd like the CREI merger to get rejected. Luckily only shareholders get a vote :)
Very happy with that outcome. The combined portfolio will be far stronger than the sum of the parts. Should all be done by Easter.
GLA
Just RNS'd, they will NOT be making an offer for API. That clears the way for the CREI proposal to be voted on as the only offer on the table.
I forget who it was that said when circumstances change so does my opinion (or words to that effect) but anyway, I've changed my vote for the third time now and am voting in favour of the CREI offer. Of course, if anything changes in the next 24 hours, there's still time for me to change again!
Urban Logistics - NO, thank you.
Derisory and insulting were two words that came immediately to mind when i read the announcement.
If they want to cherry pick it would have to be A LOT closer to NAV to be worth considering.
I think the API board should firmly reject it and move on with the CREI offer and not agree to more time wasting if SHED are not serious as it seems is the case
Lousy alternative offer, couldn't agree more!! This is the problem with share deals, always prefer cash. I'm beginning to think an organised wind down of API by its own board is a better option than either of these deals.
I wouldn't exactly call it junk, but the costs of winding down and selling are an unknown process with potentially high costs in percentage terms. SHED don't think there's any profit in it, and their costs would be lower with a fully working team.
I also have no interest in owning SHED with lower returns and paid twice a year.
The latest offer from Urban Logistics has to be the worst offer ever! It looks like they want all the best assets at a 30% discount and we are left with the junk to sell! SHED shares aren't worth accepting in exchange when they are sitting on a 28% discount!
Agreed Jaxon. I now hold around 60% CREI to 40% API as there is still risk that the deal won't complete. Its been quite a profitable time trading between the two. There have been some mad movements. The end game is close though. We should find API getting closer to the .78 of a CREI share. How close depends on how much risk in the deal people see IMHO.
The CREI offer certainly looking the better option at this stage. Good that the Board & their advisers have had plenty of time to assess the merits of the CREI offer vs the indicative proposals from SHED, and that they've managed to squeeze slightly better terms out of CREI as a result. Interesting that they feel a managed wind-down would be preferable to either of the SHED proposals. Still possible that we'll see a last-minute intervention of some kind though, so I'll hold off voting for now. If everything stays the same, I'll be voting for the CREI offer, as recommended by the Board.
Surprised that the API price not closer to the CREI offer. You can arbitrage by selling CREI and buy API and end up with more CREI than you started with (API no stamp) even allowing for the spread.
Agreed. The alternative proposal from SHED seems to me worse than their original one - we take all the bits we want, on the cheap, and leave you with all the rubbish to get rid of. That only works if they pay more for the good bits otherwise we lose both ways. Custodian offer is much better on both valuation and strategy
Very pleased with today's update. They are correct in that, personally I still want exposure in this market, and prefer the CREI offer precisely for the reasons given.
Some way to go, and SHED may still enhance their offer to make it more compelling.
Currently SHED indicative offer worth just over 55p a share, where CREI firm offer worth just over 60p
So we wait another 2 days......