Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
me too. i sold at 820p. I made a good profit. just wish id bought more. I bought under 300p Such a sound company. Any upside will be negligible to the downside risk. imo
The board will not recommend the higher Transdigm bid unless they offer terms that are parity with Parker's that will satisfy UK Gov on jobs and national security, irrespective of the better price. It's too risky when UK Gov have demonstrated with nVidia/ARM that they have the will to intervene in deals that cause them concern.
I have taken my profit now as I suspect there will be some volatility to be had here as this situation develops.
I`m happy to "top-slice" here over the 800p mark
Bit clueless here - but in the case that Parkers take over at £8 with no offer of shares etc. this would be a forced disposal for cash. Is there any scope for relaxation of the (UK) Capital Gains Tax in these circumstances? Normally disposals could be made over a number of years to lessen the tax burden.
cant rule it out but already in some quarters the original 800p offer was baulked at. in any case, any transdigm bid if it comes, reading between the lines, will not be 100% cash.
Agree...same as we have seen with Morrisons . Transdigm are serious players here fore sure.
If the transdigm offer has serious intent could Parker be prompted to raise their bid?
well for a start there is no other offer to accept. transdigm is yet to make an offer and it has not long ago underlined that no offer may be forthcoming and in the case that it is, it may be a mix of cash and alternatives. the parker offer has government consent which is an important consideration given the defence element as well as the issue of jobs. so its very early days and until transdigm make a concrete offer, there is no point in meggit board changing their view.
The board recommends accepting the lower offer. Why would they do this ? I assume it's self interest rather than the interests of the shareholders.
its a v high price. i know the parker bid was baulked at in some quarters in the states. this transdigm bid is even higher at about 18 times pre covid which is v high for uk historic standards. i run a conservative portfolio but even so i think its prudent to take off the majority up here esp since you are getting well over what parker will give next year, today.
Taking a profit is no bad thing but the other scenario is that there is a bidding war that pushes the price higher. I will hold it is worth the risk.
no certainty of an offer and while the price is still less than 20 times pre covid earnings and cheap on US valuations, its very rich for uk valuations. i have taken more off here. there is a chance they dont bid in which case the shares move back to 700-750 and the upside is only another 50-60p or so.
In view of the expected publication of the Scheme Document, the Company also announces that on 10 August 2021 it received a preliminary, non-binding proposal from TransDigm Group Incorporated ("TransDigm") with respect to a possible cash offer of 900p per share of Meggitt for the entire issued and to be issued share capital of Meggitt (the "Proposal").
another industry player not pe. no offer yet but both sides reviewing.
I would also add the decline from 750p is also driven by one of the large shareholders selling out. Capital have been cashing out since announcement...once this clears I think this will settle back between 730-750p.
just to make it clear, the takeover is not about cost savings. i read back what i wrote and just wanted to make that clear.
parker hannifin is a pretty big in the field with a very good track record. i think they have maintained or increased their dividend for more than half a century so they know what they are doing and certainly will have the funds to complete. so i dont think any issue will be financial. the government was consulted prior to the announcement and they are on board as things stand, especially the takeover is not PE and about cost savings. Parker is in the aerospace sector and does have some UK government contracts but presently the two companies have little overlap. It allows Parker to move into new areas within the sector. so the only risk i see is dramatic falls in the market or an extension of covid which may cause some of the parket institutional holders to maybe question the price. however its a very small risk imo and i expect the deal to go through. i think the price should find support around the previous high of 7 quid and having taken off a large chunk on the announcement, i might be inclined to add a bit back there.
Been in & out since the covid crash. Sold my few shares at £7.30 after the t/o announced. Just seemed a long time to wait for the £8.
The market is usually not too far out. So there is a 15% chance that the deal could fall through and then the price will probably fall back to £5 ish.
Personally I wouldn't invest just to get the 15%.
I'm holding out for the deal which I think is likely to go through. The SP pre-covid was between 600-700p anyway which is not far off the price today. I like Meggitt anyway, they are a good business who've been around a long time and essential for the MOD.
If the deal fails, the price will eventually recover to 700p. IMHO.
declined fom £7.50. Im not worried, as bought in during the covid crash. But.... am thinking, at current share price, its about 15% down on £8. Now, im currently invested fully. Limited spare cash and long standing portfolio that is doing well. But I have rainy day cash earning nothing. Im tempted to buy meggitt now and earn that 15% in a year, Not to be sniffed at.
Ok, deal could fail. But not likely. Thoughts of others?
This will take about a year to complete, as stated in RNS .
Sold out today good luck all
The recent two Takeovers shows that the ftse is undervalued by a long way!
Thank you
If it makes the firm more viable and successful, then yes!