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Private equity has a ton of money. They rather missed out before and were too cautious last year. Now with Covid end in site they are looking to do deals galore.
Yes agree , once the covid scale tips and everything begins to pick up , Mars will/would boom ,
now this sword of damocles has turned up
it’s bad news for the pi,s ( long term holders )
Obviously some will like a quick profit
What we need is another bidder to push the price up, anyone got a spare billion or two?
Does anybody think that PI's might be shafted as we were with William Hill? Well, not totally shafted if you got in when they dropped last year, but Oh! the loss of expectations, when we had hoped they would double over the coming months from the 2.25 they were at (about) when the bid came in. I was hoping that MARS would double over the months when pubs are open again.
The Board of Marston's PLC ("Marston's" or the "Company") notes the press speculation and confirms that it has today received an unsolicited non-binding proposal from Platinum Equity Advisors, LLC ("Platinum") regarding a possible cash offer for the entire issued, and to be issued, share capital of Marston's (the "Proposal").
The Board will evaluate the Proposal with its advisers and a further announcement will be made in due course. There can be no certainty that any firm offer will be made for the Company, nor as to the terms on which any firm offer might be made.
In accordance with Rule 2.6(a) of the Code, Platinum, is required, by no later than 5.00 p.m. (London time) on Friday 26th February 2021, being 28 days after today's date, to 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 can be extended with the consent of the Takeover Panel (the "Panel") in accordance with Rule 2.6(c) of the Code.
YoYoMa agree, let's see their money on the table. The eye-watering numbers being banded about would be great, but cannot see 1400 pubs/accomodation properties adding to the figures stated. The Carlsberg deal is not so easy as some think. Remember, apart from the conditions within the agreement, Carlsberg have 60% control of the breweries. Experiences of Cadbury and GKN maybe good for PI's in one way but not sure longer term managers and staff will feel comfortable.
Any mention of Brains is erroneous, that is due to complete next month and is only a management agreement. Brains retain the Dragon Brewery and all of the pubs
Sold out at 71p recently.....bought them back at 85p today. I cannot think they would have offered just a few pence about mkt price. The Carlsberg deal brought in a lot and it is a lot of business in total here. So I reckon 125p is possible. Friday, lunchtime rns, big red day.....may get noticed over weekend
If it’s anything like my experience of the AA takeover
they offered 40% more above share price ie yesterday end of day price 75 pence ish + 40 %
= £1.05
Hope it’s higher than that , otherwise on yer bike !
Stocko has EV of £ 2.11 billion ie market cap + net debt.
Not sure it's comparable in anyway to Gamestop YoYo, with respect. Marston's are likely to do well, with or without a buyout once the pandemic is done. They have survived and they will pick up market share from those who ain't. I think Platinum's behaviour is clearly opportunistic but they aren't buying Debenhams. They are going to have to pay if they want the pub chain and they may have competition.
Bloomberg article is here. You'll have to copy and paste.
https://www.msn.com/en-us/money/companies/uk-pub-owner-marston-e2-80-99s-receives-platinum-takeover-approach/ar-BB1dcSbX
£2.2 billion is the net 'enterprise' value! Sorry- not the net book value. Don't know how they work it out. 1,400 pubs? The brand for their own brews? The £780 mill joint venture and the value implications of this when it is applied over several years?
But Platinum does seem to get their hand in their pocket quite nice and deep for takeovers.
Bloomberg seems to think that the city think some-one else might want it. Who knows. Quite exciting really. I hope a big UK firm fight it out for us. Did Greene King end up getting fought over in a bidding war? Already had 2 UK pub chain buyouts in the last few years. This article also reminds us that Greene King went for over $4 billion.
Thats a lot of money considering the value worth is just 540m (Market Cap) so be interesting to see where the other money is. Personally I think there is a strategic game going on as this comes weeks after the SA Brains deal and I am sure they (MARS) would of done before this came to light, also it's unsolicited (could be a pump and dump like Gamestop)
Tricky where is the net book value of £2.5billion?
I don't think they will wait that long. I give it anything from 3-9 days depending on how the offer is received and how generous it is. As has been observed earlier Bloomberg say we'll get over £2 billion. Their last acquisition was for more than that. They have money. Marston's has a book value of at least £2.5 billion.
We'll soon see. I think we will get between £1.30 and £1.50 at the lower range. But could be higher. They want to make sure the board recommend it.
Business Desk must be wrong Davey?
If your information is correct a suspension is likely.
well said
this is why our once great proud uk has in modern times been infiltrated and even controlled by them.....what is even british these days is getting less and less
look at energy companies as virtually all are foreign whether in england or scotland.....airports too....spanish banks taking over our better part of our banks but british taxpayer saddled with the debts
our corrupt politicians on ALL parties have screwed our country
china has infiltrated most of western world whether technology (Huawei, ZOOM, telecoms etc), our universities, compromising our politicians etc
Platinum have until close of play on the 26 February to make a formal offer - will be interesting few weeks
Sam the decision is in the hands of Instituional investors. A simple majority will give ordinary PI's little say and even then those who have bought in at below 75p and there will be a hell of a lot, seeing a 40%+ gain will accept.
Private Equity Investors rarely allow existing holders to retain a share...there are mechanism thye will employ, once the bid is approved, to take your shares with no choice.
The BOD have the offer which is being considered. Likely the number will be released after the market closes today.
Sorry I have been and seen it before and there is nothing a PI can do about it.
A company needs a broad share holder base. Those that dip in and out as prices rise and fall. The long term holders for the dividend. This is better for everyone staff, shareholders and customers. These private equity pirates need to be far more tightly controlled and the Board should send them packing as should shareholders should matters come to a vote. In this respect those whose shares are held by a corporate nominee need to have an individual vote.
You may not have a choice. If more than 75% accept the offer you will be forced to sell. Just look at WMH. If the offer is anywhere north of £1 anyone who bought in the last few months is going to vote yes.
Personally I don't see the need to sell so hope the board tell them it undervalues the business and go away.
I was a shareholder at Greene King. Although I made a very good profit on the takeover, I would rather it not have fallen into foreign ownership.
With Marstons even though it has increased in price greatly since my 29p purchase in May, I would rather the share price reach 130p without another foreign takeover
If they buy the company, of course there will be no dividends. They'll own it lock, stock and barrel!
Pleased that Marstons with this approach will start to rise in value and start to recover. However, the thought of what an American hedge fund would do with a significant amount of the British brewery industry in its hands terrifies me. I have seen what they have done to other businesses making the lives of employees hell and breweries like Ringwood that I love deserve better. I will not be selling to them..... and we can forget future dividends if they do get hold of Marstons
"Including the company’s debt load, Marston’s has an enterprise value of about 2.2 billion pounds, according to data compiled by Bloomberg." I read that as taking account of the debt..? The market is obviously taking a view that no-one is going to be paying too far over the current SP to acquire Marstons
Longtime - so by that calculation our true worth per share net of debt is circa £1.60? Taking into account I’d want a discount if I was the buyer an offer of Say £1.30 per share would still seem a reasonable price to pay on that basis.
I appreciate there’s a whole bunch of what if and ambiguity at this stage but I’m surprised the sp Hasn’t settled closer to the 97 pence it hit earlier than the 87 pence it is currently.