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What do people think is the best option? I'm thinking of going for the cash but don't know enough to judge if it's worth sticking with.
Price just gone back up to 290. Maybe an RNS in the morning?
Still keeping an eye on this after selling as it remains my favourite COVID bounce-back share and will always have a warm place in my heart for the gains it delivered :) :)
Last time it drifted down from 295p to 270p before the offer got re-stated. Entirely predictable it’s happening again....
I think if it gets back to 270 again I’d be tempted to buy back in hope of a cheeky quick gain. If I was a holder who’d decided to remain in (TWICE) at 295p I would be holding in the expectation that the offer will very likely (but not certainly) be finalised soon. It’s the fact it’s not 100% certain that’s seeing the gradual drift down over time, but nothing to be unduly concerned about IMO.
Am hovering over the "Buy" button as inclined to have a punt for a quick 10% return but something doesn't feel quite right as would have expected this to be in the 290's not languishing around the 280p mark - clearly the market does not share my optimism that a deal will be done next week (or possibly later in April). Be an interesting week either way next week.
if board minded to recommend acceptance of 307.5p, all that is left to discuss is severance packages for CEO and CFO plus share options vestings surely? Not a great time to be finalising Preliminary Announcement and agreed details of bid all at once. Short extension more than reasonable?
Just had a closer look at the results and interestingly H2 operating profit was £51.6m compared to £56.8m in H2 2019, so not bad at all under the circumstances.
Only a shorter extension this time, so assume they are close.
Results looks reasonable. Encouraging performance in H2 and optimistic tone on the outlook suggests that the ERC writedown at H1 was a bit of a kitchen sinking exercise and there is a reasonable prospects of writebacks in the future. Strategic targets imply significant profit growth over the next 5 years, but we've all seen overly ambitious strategic targets in the past so some caution is warranted. The intended earlier resumption of dividends is a positive sign. I think that the 307.5p offer is a fair price under the circumstances, but I won't be distraught it it falls through as there may well be bigger returns available in the long term for a patient investor.
Has been extended again with new date of 1st April. So guess we will have to wait until then which can be extended again.
This has the feel of a combined announcement of the preliminary results and a recommended deal.
Tomorrow we will know if 307.5p all cash offer takes place. Not long to wait now.
Not totally sure but shareholders will get paid for the shares they own at the agreed sale price and company will no longer be on the exchange.
I think another bid will come in.
Wouldn't worry I meant sorry.
Glad I bought more into arw when it dropped back 20% after the big climb...
I think either way this one will be good for continuing smaller climbs if its not sold..
Would worry about it archy. If you look into the company & what it's making you would expect to wait a few years for the tech to become common place.
The company I woke for also have their own version of this tech & it's being worked into future projects for the auto industry etc. So if it catches on its one for the years ahead & nothing here & now just yet.
Hi guys this may sound new to this. May sound like a silly but here goes..
Hypothetically if we do get brought out for 307 would all shareholders get paid out and ARW will be delisted into a private company? Thanks in advance
* after I’d sold out of ARW I mean.
Hey guys, congratulations .... another chance to sell up at 295p if you regretted not doing so last time :)
Ps, while I’m here, I need to apologise for the CPX recommendation I posted on this board after I sold out myself . I foolishly believed the hype posted by the CPX ramping brigade, including a well-followed Twitter trader who was pumping hard when the price was at 12p, said the price would be at 20p in a matter of weeks and he was raising his target to 30p. Current price: 8p and falling.
You live and learn!
So a deadline extension and a slightly improved proposal up by 2.5p per share that is likely to be recommended. Well the Board and advisers have to demonstrate they are adding value I suppose, but 2.5p is hardly worth the effort. Another 2 weeks to see whether they can reach agreement. It feels like this might happen now.
Yes, we should know by the end of Monday, or maybe first thing with the RNS releases, whether TDR have managed to reach a deal with the board. With it going down to the wire, and no further news or rumour, my expectation is for them not to have agreed a transaction. And I can't see TDR going hostile, especially with the Aggreko deal to preoccupy them. So I expect the shares to drop back the low 200's and I'll reinvest the proceeds of my recent profit taking. I do think there is a lot of potential here for the shares to go higher in the medium term so look forward to seeing what management can do. The only thing I don't understand is why Zach Levy broke ranks and agreed an irrevocable undertaking at the proposed offer price. Unless perhaps he is on a promise from TDR? Anyway, let's see what the day brings. It will be interesting either way.
Chris,
That's a sensible approach. I had taken a similar approach and only now have a smaller shareholding and a SB.
We should hear whether formal TDR offer for the company (305p all cash offer) is made during Monday 8th March or latest next day Tue 9th March. Be interesting to hear intent OR even if that has resulted in any other offers coming in.
Not long to wait now.
See 8th Feb news exert:
In accordance with Rule 2.6(a) of the Code, TDR must, by not later than 5.00 p.m. on 8 March 2021, either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code. The deadline shall cease to apply, by virtue of Rule 2.6(b) of the Code, where a firm intention to make an offer for Arrow under Rule 2.7 of the Code is announced by an offeror (other than TDR) prior to such deadline.
I sold about 20% of my holding at the initial announcement and will reinvest the proceeds if the price falls back if there is no deal. I am happy to to hold for the long term with the business performing well and strong growth prospects in a world awash with debt .
Good spot, the way the price is well below the potential offer indicates to me it won't happen, and i wouldn't be too bothered about that i still think this company will have a higher share price before the years out anyway.
TDR announced an agreed offer for Aggreko this morning at a total acquisition cost in excess of £2bn. Wonder whether this might have implications as to whether the ARW deal moves forward?
As you say does make one wonder what 9th March will reveal.
1) if approved 305p coming. Over 10% discount today.
2) another higher bid arrives and announced. SP higher than 305p
3) offer rejected the all cash 305p offer because they feel company valued much higher and want to realise that potential. This could also result in more interest going forward.
Personally I think current SP provides good upside potential in all future scenarios. Before this happened my own personal target was 400p to 500p based on future prospects in the next 1 to 2 years.
TDR has until March 8 to makes a firm offer at 305p or announce its intention not to do so.