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MAB shares are now trading Ex Offer. The offer shares are non transferable and non tradable.
Anyone buying in the market at today`s price has no access to the open offer and would therefore not accept any further dilution. You are free to sell MAB shares in order free cash to take up your offer shares.
What’s stopping PIs selling up now and buying back at 210p and then banking the profit immediately? Or is this the passive takeover part?
I’m used to RIs where you can sell the rights but here there is no such option. As I held MAB on the 19th I qualify but won’t the SP just move down towards 210p now? Why not sell my shares and take up the offer at 210p? I’m not keen on LTH now as this is now a takeover without the big rise imo.
The theoretical dilution price on offer date was 294p. We are slightly above that at present. Where else could you buy 300p shares for 210p. Odyzean will be happy to mop them up if you don`t take them.
I agree u need to take up options but also be aware that in the short term the price may drift down due to the dilution and the general tendancy of price to drift to option price .
I estimate it head to the 2.60-2.80 mark ,just a guess
Anyone who does not take up their options at 210p is just handing Odyzean more of the company at a discount price, which is what they want.
Hummm interesting spike in yields today. Could just be a flash. Tech is getting hit by it though. Be interesting if Financials get marked down as well, if they are could be a buying opportunity on the horizon. MAB could just have timed fund raising just in time.
Pete it's not just pundits, look at Neil Woodford.
Investor's Chronicle rated this as 'sell' in November 2020 when the share price was 214p.
It's alarming how wrong some pundits get the markets.
Funny enough, I discussed this share (and other pub shares) with independent bar owners when the country was just about to enter the lockdown in November. They said that these shares would no doubt rise once the COVID-19 saga is done and dusted.
https://www.lse.co.uk/ShareChat.asp?ShareTicker=MAB&share=Mitchells-and-Butlers ....
Hmm good arguement,it's hard to know with this share .
Maybe your right ,maybe your wrong .
Guess we will find out in the coming months and years .
GLA
If you look back at 2008 and how much money was printed then and look what happened to the markets. Now look at how much has been printed with this crisis. Add to that the fact that the world basically came to a standstill. I believe there is so much pent up demanded and consumer savings that there will be a ridiculous boom. Just look at the money going into bitcoin to preserve wealth. Boom means increased infaltion which equals interest rate rises. Trick is to position your portfolio accordingly. All companies like MAB who are re arranging their debt are setting themselves in a good in position for the future. All we hear on the news is stock market bubble ready to burst. They fail to mention how much money has been printed. Where are the ridiculously hight P/Es there are a few though. i remember and got burnt in 2001 that was a bubble. GLA sorry but just want to lift spirits and share my point of view
Callum, I agree you say its a little under handed. However I take a different point of view. I like the fact that 55% of the shares are effectively out of the market and makes this share harder to short. All depends on your entry price and time horizon. For me I know I can hold this company and sleep well knowing one day they will be in a better pkace. Thats why I added the other day to obtain more rights. I know I mentioned this before but it's the quantitative easing that is the big player in the markets. For an example I've a large weighting in Insurance, it won't be long till inflation starts to go up, 18 months I think till it starts to kick and then these will steadily move higher. Irrelevant of covid
The 40% calculation is incorrect. You have applied it to all shares rather than the new ones.
Daves, a profit is a profit nice one!
Odyzean already own 55% they have effective control.
The whole thing looks dodgy to me IMO
For better or worse I have just sold, taking a profit of 40% on my original investment. Articles in Money Week and Investors Chronicle aren’t that positive about what is proposed and my rough calculations on dilution didn’t show a great upside . On to the next one , City Pub Group are well tipped so I may say in this sector .
If it is Odyzean Group's intention to take over the company they will have to purchase all the share capital.
The indications are that with the SP retaining its value, that this is what the City expects?
Dont get whats going on can someone explain in simple terms? is this just a simple equity raising of additional shares all shareholders can take up?
If so whats the big deal? if you take the offer the price would just balance out broadly to the same position reflecting the 20% addiitonal shares so it would just be my investment plus the 20% extra ive now invested?
I think this will just drive the sp down to 210 and you'll be able to buy as many as you like.
“Odyzean Group”
Seem to be effectively taking over the company on the cheap at 2.10 .If you read the prospectus there some very worrying
Further, as a result of the Odyzean Group holding over 50 per cent. of the Company’s issued
share capital, it may acquire further interests in the Company without being required to make
a mandatory offer for the remaining Shares pursuant to Rule 9 of the Takeover Code.
If you read the prospectus it's effectively a takeover on the cheap by “Odyzean Group”
Be intresting to see how the city view it as there some very concerning sections in that prospectus about what they will do in future .
If you don’t take it up you lose money as you will be diluted at less than market value
If you take it up you will buy a share for 210 that will be worth more than that, but your previous holding will have lost a bit of value. In theory it all evens out and if you want to ‘equalise’ yourself you can just share sells you the value of what you paid for the option.
It will require less shares than you purchased to recover your cost.
You will be left with more shares than you had before, with a lower share price, all else equal with the same value.
Where do you get 40 percent from?
It’s just maths really. Last time I looked last week it looked like I drop from around 330 to 308..
it’s now a bit lower so in theory a bit lower than that, but not much.
This was the response from MAB on Friday when asked about PI participation in the open offer.
Thank you for your email.
Further information on the offer will be provided to qualifying shareholders in due course.
Regards
Janet Barker
Secretary
Secretariat and Investor Relations
Mitchells & Butlers
73-77 Euston Road
London, NW1 2QS
0121 498 6514