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Todays RNS implies that SHED are not looking to fold their hand. Interesting
Probably won't find out until Thursday morning. I expect an RNS then, if not tomorrow as SHED have made an offer. Personally I think they are simply kicking the tyres with a derisory offer. It has allowed those with shorts under 0.5% here more time to close. Just my opinion. Nice to see us getting a bit of value back in the share price.
"Pursuant to Rule 2.6(d) and Section 4 of Appendix 7 of the Takeover Code, the Panel Executive has ruled that, unless the Executive consents otherwise, Urban Logistics must by 5.00pm on 13 March 2024, being the seventh day prior to the date of the Adjourned Meetings, either announce a firm intention to make an offer for API under Rule 2.7 of the Code or announce that it does not intend to make an offer for API. This deadline will cease to apply if, before that time, a third party other than Urban Logistics has announced a firm intention to make an offer for API under Rule 2.7.
Each of API, CREI and Urban Logistics has accepted this ruling."
Should find out tomorrow if SHED will bid. I suspect they wont as the CREI offer is 10% better than their indicative offer so they would need to make it worthwhile. Looks like it was just a fishing trip for them but maye they may be interested in a specific property or two so who knows
Interesting update on the Shares Magazine news story (below). Mattioli Woods (MTW) has now agreed a bid from Pollen Street Capital so it'll be interesting to see if they have a role to play in all this. They'll certainly have an interest in the outcome.
Friday 12:00 noon on Investor Meet Company for anyone interested.
Well worth a read, as rylidan says.
Nice RNS issued by CREI today.
From today's edition: "Merger activity in the property sector heats up with bid battle for API"
"Just last week, however, a new contender entered the frame as Urban Logistics (SHED) made a counter-offer for API at a premium to the Custodian deal, potentially signalling the start of a bidding war for UK commercial property assets.
Urban Logistics approached the Abrdn trust with an all-share offer which valued the latter at 59.2p on the day of the announcement, a 23% premium to its undisturbed share price the day before the Custodian deal was made public and a 13% premium to the Custodian offer.
Urban Logistics claims the two are a good fit as only 9% of the combined portfolio would be outside of logistics and retail warehousing, in addition to which it knows the API assets well."
"Despite this commercial logic, convincing API shareholders may be another matter as over a quarter of the shares are owned by retail investors who appreciate the 7.7% yield and quarterly dividend payments, whereas Urban Logistics has a lower yield and pays a semi-annual dividend.
Also, 9% of API’s shares are held by wealth management firm Mattioli Woods (MTW), which happens to own Custodian Capital Ltd, the manager of the Custodian REIT, and would presumably rather see the latter take control."
SHED have until 5pm on 13th March to either put up or shut up, I guess things will become clearer after that. It does look like a good bit of business, which makes it odd why the bidding parties have seen their sp drop once they've been linked with API. My gut feel is that the Board will ultimately recommend the CREI offer (again), but we'll see what happens in a couple of weeks if not sooner.
Had bought into CREI to equal half my API holding, a tad under 68p. So this morning sold half my API holding to derisk the possibility of CREI not winning, at a small profit and a dividend.
If SHED win with their low ball offer I'll hold for fair value before selling. If CREI win I'll hold fir the enhanced fully covered dividend.
Whoever wins will rationise by selling large chunks of API and keep the remainder for almost nothing IMO. It's a nice bit of business for the winner.
Was quite hacked off by SHED comparing their offer to the CREI one, after CREI had been played by the funds down to a stupid price. Now SHED have also fallen their offer is not so attractive!
To give the Board chance to assess the offers, & SHED to either bid or clear off. Common sense prevails.
Absolutely, make your own minds up. But don't put words in my mouth rylidan - I'm not recommending people change their decision, just that they review any decision based on new information available. I too was quite happy with the original proposal, but SHED have come in with what appears to be an improved offer. So I'm not going to support CREI taking out API for less than the offer from elsewhere, I'll wait & see what the Board recommends and make a decision based on that. I'm entitled to my view, just as you are.
What's more the CREI offer was 62p based on their share price at the time of the offer. The new one is 59p.
I have every confidence the CREI shareprice would re rate over 80p if the offer goes through.
I'm sticking with what I see as the better offer.
Personally I think this is just a ploy to scupper the CREI deal. I was very happy with that outcome albeit CREI are getting a great deal IMO. You have to realise API is in the grip of shorters who are desperate for this deal to fall through.
Our weakness is size of portfolio and being in the Aberdeen stable.
I don't trust this "new" offer. I'm not changing my decision. I also don't trust other posters, so I'm certainly not going to change on the recommendation of someone I don't know, and whose motive may be suspect.
GLA make your own minds up!
Just realised I'd instructed my broker to accept the CREI offer, which I am now rejecting pending clarification on this & the new bid from SHED. I know API has advised shareholders not to do anything at this stage, but if anyone else has voted in favour of the CREI deal (and not voting means you're supporting the Board to accept the offer) you might want to revise your decision. I'm assuming it will all be academic & the vote will be pulled at some point, but just in case...
Talk about a muted response. Even in the teeth of a bidding war the sp is unmoved. Fingers crossed for a third bidder, or a counter-bid from CREI.
# loser
Yes, indeed! Hope the looser makes a bid for RGL lol.
Https://www.voxmarkets.co.uk/rns/announcement/4f4c250a-ec98-4d19-ac9b-a69f0c1c7077/
Last day to buy and get the 1p dividend. CREI already x dividend. Equivalent price is 51.7 when divided by 0.78 gives 66.28p. Assuming the deal progresses, which appears very likely IMO.
GLA
I agree that it's a good deal for both parties. Crucially for API it solves the problem of the uncovered dividend.
From latest RNS I gather a CREI holder is now also buying into API for value. Currently you can get CREI at 68.1p by buying API. Assuming deal goes through, and I can't see why any major shareholder would want to block. Looks like a good deal to me for both parties.
API shareholders are really getting 73p for their API shares.
The December NAV of CREI is 93.7p
The December NAV of API is 78.5p
0.78 CREi for every 1 API share.
So API shareholders are receiving 93.7p x 0.78 = 73p.
This actually represents a discount of 7% to the December nav of 78.5p.
Obviously there are costs involved in doing a deal of this size but the future savings, covered dividend, and uptick in dividend to what would be 4.3p (in API money) is attractive.
Just looking at the details of the proposed merger/takeover by CREI. Unlike some of the deals happening with several of my other income funds & Trusts, this one looks completely sensible and in the best interests of all involved. I'll be holding the CREI shares following merger.
Https://www.telegraph.co.uk/business/2023/12/11/ftse-100-markets-news-twitter-alex-jones-uk-economy-latest/ Goldman advises against shorting UK commercial property stocks