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Have I missed something here because I haven't as yet seen a takeover price unless I am going blind, anyone please ?
Or is this going to be another AA deal and offer say 75p.
Unsolicited offer made to the board who are reviewing it. It seems that the market got wind (don’t they always) so on Friday as speculative share purchases pushed up the share price the board issued an rns confirming that an approach had been made.
No mention of price from the board. No speculation as to the price in U.K. or US press over the weekend and no further rns from the board this morning prior to market open. So what the offer is and what the likely reaction will be is pure guesswork at the moment.
I’m not sure what to make of that. Could it be the offer made was on the lowish side so the board are formulating an outright no response? Maybe the offer is sufficient to prick the ears of shareholders but, in the opinion of the board, doesn’t take enough account of our future value? Or perhaps the offer is generous enough for the board to recommend it to shareholders but they need a day or two to pop over to Copenhagen and work out how such an offer would work with our new partners?
So now we wait and see and perhaps the first indication we will get that anything is about to happen will be a jump or slide in the sp.
@Pmoran. Yes, that sounds like an accurate assessment of the state of play. it's still early doors and a more detailed assessment of the detail is required, and of course, the numbers which will of course take time. Sit back and wait for updates to see what transpires and make our decisions from there would be my strategy.
Pmoran, you say the first indication will be a jump or a slide in SP but in terms of downside: if the offer is higher than current SP but rejected then that is also positive/nuetral as it implies that the company is undervalued at present. Another thing to take into account is that we are only just above the recent high pre-takeover news anyway.
At the moment it is speculation what if any a Bid will be. Platinum are cagey customers and know all the tactics to reel in shareholders. They could be testing the water, they are unlikely to make a formal offer until numbers stack up for them. Do not be under any illusion a VC group are not looking at the health and welfare of target Shareholders.
It is no secret the whole hospitality sector has low income and the future is unclear. This makes many companys vulnerable to a predator. Marstons now are basically a Hospitality Company who have a 40% share in a brewery Company. Shareholder should not forget this as CMBC is a separate Company. Carlsberg is the senior partner and food for thought that informal talks have taken place with Platinum??
Platiinum are only interested in assets that can produce a profit.
Peaks - I don’t disagree with your point that a lowish offer that Is above current sp but is rejected by the board might still leave the sp where it is currently or it could even raise it as people speculate about how high platinum would be prepared to go.
But taking into account fairdealers very valid points about this all merely being speculation at the Moment and platinums shrewdness if the board tell them where to go and they were to show an interest in m&b instead then I would expect the sp to drop back to where it was pre offer.
I guess the point I was making when I said perhaps the first indication might be a significant move in the sp was more to do with the fact that invariably things have a tendency to leak out and be reflected in the share price, as they appear to have done on Friday, prior to comms being released.
Liberum has downgraded Marston’s to ‘hold’ after takeover speculation pushed the share price higher.
The brewer and pub company is currently considering an unsolicited approach from US private equity firm Platinum Equity Advisors. No further details have been announced by Marston’s, although in accordance with the Takeover Code, Platinum must make a firm offer or walk away by 26 February.
Anna Barnfather, analyst at Liberum, said: "Marston’s shares have risen up to its current pro forma net asset value following confirmation of a bid approach. No firm offer has been made, and hence no specific details have been provided while the board evaluates the proposal.
"Based on a pre-Covid trailing earnings before interest, tax, depreciation and amortisation of around £180m, current NAV of 87p and recent transaction comparatives, we believe an offer could come in at above 100p.
"However, this is dependent on many factors. We move our recommendation to ‘hold’, giving the upside risk balance with uncertainty over whether a final offer can be agreed."
Liberum, which previously had a ‘buy’ rating on the stock, has a target price of 90.0p. As at 0930 GMT, shares in Marston’s were flat at 82.25p.