Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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NAV 111. Management except offer of 80p. Doesn't follow that shareholders and in particular institutions will accept the offer.
I believe LGEN is shareholder.
No option of shares in new company cash is the only option.
1.45p dividend to go exdivided on the 19th May (need to check that date)
Any other dividends paid will come of the 80p offer (according to Civitas site).
Should the offer fail the 80p, should be a support price. Initially I would expect a significant fall.
If the offer is voted down, i don't know if they will or can come back with a better offer.
Sold for a 30% gain yesterday but might have been worth waiting to sell the day before exdivided. Assumption being it will rise the day before and fall exdivided.
IF I was at a significant loss I would hold out to see how the vote goes.
BlackRock recently offered to buy industrials REIT for 3% premium on its well out of date NAV.
Completely different sector I know.
In the case of Civitas is there another company out there that would be interested in buying?
Ok, Matt.
I must admit, I make far more mistakes when trading so I'll completely concede that I could well be wrong.
I have noted there seems to be a large amount of sells, with not too many buys.
I'm wondering whether the SP will just hold at 80p, as if so, I may wait until the ex dividend date, and then sell out.
Ho hum. I am sure whatever I decide to do I'll get it wrong....
Story of my investing life.
GRQ - This is a cash only bid - no shares being offered here I don't think.
Hi, Matt,
I know from previous occasions with mergers / takeovers, I've previously received the option to have the cash and or shares in the new company.
However, that may not be the scenario in this case but we will have to see.
All the best.
Seems to be a few misconceptions here. This is a cash bid - you will NOT be receiving CK Shares, or any future dividends after the bid has gone through. The next (and last) CSH dividend is contractual as it is explicitly mentioned in the takeover announcement. In terms of holding on, if CK can get 90% of shares and voting rights, the remainder will be compelled to sell, so they'll have no choice.
It just goes to show how murky Civitas, and their Board, are. They labour the NAV over and over again, then when it comes to selling it is entirely ignored! I feel sorry for the shareholders and leaseholders
Plenty of analysts are saying the offer is undervalued. Plus large shareholders stating they will vote to reject the offer as will I.
Morning, Ken,
I partly agree but the offer is still below the NAV, and sentiment / buying pressure / potentially owning shares in CK, which is a billion dollar company, may go a long way.
But yes, let's see how it reacts today.
All the best.
Get rich we all have individual agendas so I do understand your method of thinking good luck and hope you make a little more if it rises.
However it's very unusual for a share to rise past the takeover bid price
CK Asset is going to buy CSH. That isn't in any doubt, so what happens then?
If your trading account allows you to hold shares on the Hong Kong Stock Exchange then it could be worth you continuing to hold but for many, when is the appropriate time to sell?
Someone commented on the regular dividend payment being taken from us, but CK Asset Holding pay a quarterly dividend so if you can hold, you still could...
Their dividend, which is admittedly less than ours, is shy of 5%.
I sold a quarter of my holding yesterday at 80p. I have a 60p average, and I'm going to see if the share price ticks up a bit today, and if she does, I'll continue to off load my holding.
Good luck all.
Spike I'm similar to yourself have held this since December 57.5 av and had 1 divi but never look a gifthorse in the mouth so I sold out yesterday as there's plenty to choose from.
On another note once the takeovers complete the dividend could be changed or recalibrate just like that so I'm happy with what I've got.
It don't pay to be too greedy on this game
;-(. wish I had known before selling !
So, around 20% of the company has changed hands today. If that 's simply CK hoovering up shares, then that's one thing, but if it's actually hedge funds or activist investors banking on a better offer (and prepared to vote as such) then this might well create a new dynamic, and potentially a better offer......?
Agree with a lot of that Tick. I don't think the IM will be concerned - it's confirmed that they will continue to manage the portfolio - I assume that this was part of the deal from the CIV Board's perspective.
I wonder how LucyDS is getting on with her short? Hahahhaha
If you believe the bid level undervalues the long term value of your company,but then agree to sell at a price significantly below recent NAV estimates,then to my mind you are not fit to be on the board of a public company.Reasons given to sell show the board has no stomach for hard work.Like huge numbers of their peer group they take the easy cash and lunches ,then walk away when times get tough.Or,of course,they have been withholding imminent negative information.Or they have no confidence in the Investment Manager.Wonder what the IM will get out of this deal?
Now we know why Legal & General have recently bought millions of these shares! Follow the money, as they say!
Yes Punter64, I agree that you should take the next dividend and then sell. Unfortunately, I'll miss the quarterly dividend.
Happy to take the next divi and cut and run. I agree with the BOD that due to ongoing negative sentiment the sp was unlikely to recover much for quite a while particularly when house prices are falling slightly. Take the money and reinvest elsewhere is my view. Good outcome.
The ex dividend date is 18 May with a payment of 1.425 p per share. I am not particularly happy with the deal on offer but I suspect it will go through
For those who want to retain exposure to the sector with a 50% discount to NAV and a yield over 10%, I suggest you look at Triple Point (SOHO). The characteristics above are AFTER the rise of c18% today.
Think this deal will go through as not enough individual share holders happened before to me with GLO made a killing of over 60p a share but was gutted to lose a good quarterly dividend payer like this one. Got in here just under 60p so will make a good profit but again is frustrating as another good quarterly payer is gone...Maybe a counter offer could up the ante....GLA
Does anyone know when and how we are able to vote on the deal? Or do we not get a say in this? Seems like a mixed response from the chat rooms on the deal so far.
I'm with you FTREB
They're just buying free money at our expense - How can the board recommend at c. 75p in the pound? Why not just liquidate the assets and return the cash that way? even if they sell at 10% below NAV
Seems one or two on this board and the other board are happy about this - Me not so much, the board talk about the headwinds in this sector blah blah blah but longer term that would change and in the meantime the div makes up for it.