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Started: ripley94, 10 May 2022 08:58
Last post: ripley94, 10 May 2022 08:58
Morrisons confirms McColl's rescue deal
Mon, 9th May 2022 17:19
(Sharecast News) - Morrisons confirmed on Monday that it has agreed to buy convenience store operator McColl's from the administrator, seeing off competition from the Issa brothers' EG Group.
The supermarket retailer said the deal will be structured through a pre-pack administration. Morrisons will buy all of McColl's 1,160 stores, which include 270 Morrisons Daily format stores.
All McColl's staff will be transferred with the McColl's business to Morrisons, and McColl's two pension schemes will be taken on by the chain.
Morrisons - which was recently taken over by private equity firm Clayton, Dubilier & Rice - said its wholesale supply agreement to McColl's stores will continue without interruption and the convenience stores will continue to trade.
Morrisons chief executive David Potts said: "Although we are disappointed that the business was put into administration, we believe this is a good outcome for McColl's and all its stakeholders. This transaction offers stability and continuity for the McColl's business and, in particular, a better outcome for its colleagues and pensioners.
"We all look forward to welcoming many new colleagues into the Morrisons business and to building on the proven strength of the Morrisons Daily format."
McColl's went into administration last Friday after talks with Morrisons fell through and creditors refused to extend a deadline for it to raise more cash.
Started: MakeSomeMoney, 4 Nov 2021 15:06
Last post: samson123, 11 Nov 2021 09:49
got mine yesterday .
The offer document said payment would be on or around 10th Nov so should be soon.
Mardler think you are correct CDR is not a share holder company (not listed)
Anyone got their money yet? 10th today.
That is completely wrong penstock.
It is an All Cash Offer, you will receive 287p per share in due course.
There is no alternative to convert the shares.
I just phoned Equiniti, Morrison's Registrar. The chap told me that the deal is being finalised this week but I can hang on to the shares if I want and they will be converted into the take over company's shares. I assumed we had to trade them in for 287p each, but clearly that isn't the case.
Last post: Gerry557, 20 Oct 2021 12:53
So it is being (forcibly) sold for me and there were very few "No votes!."
My No's didnt count for much then. Im still not convinced this is good news but alas I will (have to) move on.
So some extra cash to invest somewhere. First world problems I suppose.
Started: NOKIA, 5 Oct 2021 12:01
Last post: Pmoran1969, 20 Oct 2021 12:49
Anyone else use Halifax share dealing? I got a few corporate action notifications about the the takeover but didn’t get prompted to vote. I’m pretty sure last time I held shares that were subject to a takeover I voted via the corporate action process with Halifax.
"i may be wrong but isn't there 2 pence dividend to add on ?"
You re wrong, soz
No mention of it in the RNS, all voted through @287 by the end of October
https://www.lse.co.uk/rns/MRW/results-of-court-meeting-and-general-meeting-tpl8iw5js8ojbyb.html
i may be wrong but isn't there 2 pence dividend to add on ?
Ditto, sold my position yesterday too, not worth holding out for that penny, reinvest elsewhere as I'm sure this share has finished its ride!
Started: penstock, 12 Oct 2021 13:06
Last post: penstock, 12 Oct 2021 13:24
Thanks Staycool. Hope the vote to agree goes through in that case and I can treat this as a £300 learning experience. I had a few Safeway shares years ago that morphed into Morrisons with an uplift in value. Was hoping the same would happen again but I missed this 'cash only' bid stipulation :/
I can't see any reason to sell now, you will get the bid price without any selling cost. If you sell now you will get just below the bid price but will get selling cost deducted. You will receive cash as the bids had to be cash only.
If the bid is not approved by shareholders then the price will probably drop.
I stupidly invested at 295 buying just 3000 that Friday afternoon prior to auction. Was my first share purchase and the worst (so far). If the winning auction bid goes through, which seems likely, then are the shares outright purchased back at 285 or converted to shares in the new owners? Is there any point holding on to them now? Just glad I bought POLX based on 'latest share chat' last week.
Started: samson123, 5 Oct 2021 08:49
Last post: NotBot, 7 Oct 2021 11:17
Fair point Camboy. In this situation I lean towards taking the proceeds slightly earlier if there's only a small cost involved, particularly if I've spotted an interesting opportunity for the proceeds and if there's a long time to wait for the takeover to play out - so I've taken the opportunity to check the timetable, and it seems that the 'Effective Date' is late October, with the payout no more than 14 days after that, which isn't such a long time. Maybe it's worth waiting after all.
you may not need to cash them in and pay fees. If they do it for you it may be fee free!
I was absolutely convinced that there'd be at least one more bidder (not necessarily Amazon), also that even with the 2 bidder auction we'd go above £3, so I got that wrong, so the modest September top-up I made at £2.93 was a mistake.
Having disproved my credentials, I'll now predict that the price will move a bit closer to the £2.87 bid price over the next 2 weeks once the in-a-hurry sellers have left. I guess there's an outside chance of some as-yet unannounced 3rd bidder surfacing, but I think we'd at least have had rumours of this by now if that was a realistic possibility. I expect I'll hold for another week before cashing in my MRW chips.
Unexpected item in the bidding area!!!!!!!!!!
Sorry......... I'll go now.........LOL
>>>Amazon is the only potential bidder that stands to lose if someone else, especially a PE bunch, gets their claws on Morrisons.
Much as an Amazon bid would be best for shareholders and Morrisons the company why will Amazon lose out when PE takes over? Wholesale has been the one area of expansion where MRW has not been impacted by the Germans so PE would want to continue that business and would want to continue to supply Amazon, one of their biggest wholesale customers.
I will vote no because of the very small return for myself and other long time holders. In a few years we could have reached this price with reinvested dividends and natural growth. The company is now in danger of underinvestment and stripping its property portfolio etc for the benefit of offshore funds.
Gerry 557, thanks for your reply. I have voted against but sadly I believe that most BODs nowadays are unfit for purpose.
waylow, you can vote against. I will but it is unlikely to succeed sadly
I strongly bemoan the sale. I purchased Morrisons many years ago at £3.00 a share. Tesco then was £4 , Sainsburys about £ 5.70 , Talk Talk £4., Stagecoach £ 3+, BT £13.+, etc. Why is it that the BOD of all these respective National companies not ever decline these ludicrous offers as serious under valuations which is why they are being snapped up. Why can they not easily see what the buyers easily visualize. In my very own opinion they are just unbelievable and should have never been in the positions they occupy, let's hope Amazon kicks in and allows us some sort of a retentive interest
staycool- I blame the government for labour problems because they have been too slow to react [as usual] , the tanker driver and meat processing shortages were predicted and should have been addressed through a transition plan , say allowing foreign workers 6 month permits unti after christmas.
How can you blame the government for lack of labour supply when there are 1 million jobs and 1.5 million supposedly looking for work. It must be good to sit at home on benefits.
If market thinks 287 is final price, the sp on Monday will be 275-280 imv. Anything above that suggests another bidder may emerge. I think the government has taken about 10p off the sp , like it has taken 3% off most UK stocks through incompetence in the labiour shortages, fuel crisis, gas crisis and NI increases. UK profits are going to be squeezed in most places , BOO was just the start.
Price will sit just below agreed sale price , I assume at £2:85 ?
Started: jedclampit, 3 Oct 2021 15:15
Last post: jedclampit, 3 Oct 2021 15:15
Is the final offer and agreed by the bod's, why would anyone hold out longer to see the sp drop to £2.87 or below on Monday.
All the big boys will bail at £2.90 ish if they can get it but my guess is it will be £2.87 within seconds of open.
Problem here is U.K. investment fraternity do not value U.K. companies highly enough. Let’s hope Amazon pop up with a bid .
Another UK company sold to foreign investment which will be split up and assets sold to recoup the outlay
Nice bit of financial engineering will reap some big dividend payments for the directors of CD&R. I seem to recall reading an article that they were planning to structure this within a financial vehicle based in a tax free location. Net result is less tax reciepts, less job security, higher anxiety about the future among its employees, contractors and food producers all for around £1 profit per share which you would have probably gained through dividend payments over the next 5 years.
Is it worth it ???
Go with your conscious and vote NO to the deal.
Don't let these leeches ruin a perfectly good business for their own personal short term gain.
Started: Swell2316, 29 Sep 2021 12:54
Last post: casapinos, 1 Oct 2021 16:17
JP Morgan acting on behalf of CD&R have today announced a net long buy of 5 mill shares @296p, so a cost of ~£15mill. (tho' they have a battery of short and long swaps). At face value it suggests they are expecting at least one counter bid from Fortress above that level and are prepared to bid again , so I think we are in for at least one cycle of bid and counter bid tomorrow.
Takeover panel rules . The auction WILL take place unless either offerror makes a "no increase" statement before 5pm today and it will conclude on saturday . The takeover panel commits to making an announcement "as soon as practicable following completion" which in practise means sometime on saturday morning or early afternoon.That will be followed by a spate of RNS's from all the players on Monday morning at 7am.The minimum price is the 285p deal already in place ,but as the SP continues to trade above that, the market is assuming that it will be exceeded.
I am confident we will not get a blow by blow update because of confidentiality around the process , however except something in Sunday press . As for price, the market movement of late has trimmed a few pence off the final price imv . As for Amazon- who knows- a significant strategic shift that could affect their sp likely to put them off imv . We shall see what happens next week.
I am by nature a cautious investor but have traded a few of these auctions before and the pressure to clinch a deal sometimes drives a price well above expectations, in the case of MRW I suspect that the real estate element of the value is the one which can swing a bid of comfortably in excess of £3.I am also deeply cynical about the binding nature of
" promises " made by prospective owners. As a holder in the 230 price range it's a no lose situation.
GLA
All indications are that 300 is only possible if the buyer is willing to make adjustments to the business model with regards debt and real estate but, a 3rd party with deep pockets and a revised business plan that enhances MRW but, doesn’t break it up or load it with debt is easily a better option. Interesting times indeed.
Last post: volcano, 1 Oct 2021 09:15
PREVIEW-Morrisons' fate to be decided in $10 bln Saturday shootout
Fri, 1st Oct 2021 08:00Thomson Reuters
By James Davey
Will we get blow by blow information on the auction as stockmarket closed on Saturday ? Will RNS be issued as we go on ?
https://www.ft.com/content/2b9e0c92-76cf-4c85-b097-afb48698b9df
Started: Turnpan, 10 Sep 2021 12:19
Last post: Turnpan, 10 Sep 2021 12:19
Mince pies now on sale in Morrisons.
Started: Gerry557, 9 Sep 2021 09:34
Last post: Gerry557, 9 Sep 2021 09:34
Costs of £5m (2 August 2020: £nil, 31 January 2021: £nil) represent fees incurred in the period relating to the proposed takeover of the Group.
That's an expensive offer!
Mixed messages going on. Some bad actual metrics being reported but good underlying messages that this is temp and will get better.
No divi announced although to be expected with an offer on the table. Still looking like these will be ripped from our hands so maybe not much point looking too closely. If two buyers see so much potential why cant share holders.
Profit set to increase, debt set to fall and free cash flow increasing and progress looking good ahead. What's not to like in the years ahead but some will see the bid shining bigger and brighter, well for 5 minutes anyway.
Started: MakeSomeMoney, 8 Sep 2021 09:00
Last post: MakeSomeMoney, 8 Sep 2021 09:00
Continue to hold. What a ride.
The Morrisons bidding war is set to be decided in a dramatic auction showdown ‘within weeks’, the Mail has reported.
The Takeover Panel is expected to begin talks with the two bidders and the Morrisons board as soon as this week to draw a line under the three-month battle and end the ‘great uncertainty’ suffered by the business, its employers and suppliers.
The Bradford-based grocer’s £7.02 billion market capitalisation, at Friday’s close, was less than 1 per cent behind Sainsbury’s £7.08 billion valuation, and the market expects the bidding for Morrisons to go higher still.
Bring it on.
Started: NOKIA, 23 Aug 2021 18:13
Last post: NOKIA, 23 Aug 2021 18:13
What are all the 20 odd RNS form notifications we keep getting everyday on Morrison’s.
Started: NOKIA, 19 Aug 2021 22:17
Last post: Lanner, 23 Aug 2021 11:26
Noted. Pity not a UK based business in the running. L&G, Aviva etc for their pension funds? The Treasury may lose much of their Tax take on MRW's profits.
This is the reality of the world we live in unfortunately...especially whilst UK PLC as a whole remains so undervalued. As a lth I will be sad to see this go into US PE hands but I'm happy that we have at least now got a fair valuation for it. This has been so undervalued for so long and there are so many others...MKS is another and it is good to see some sort of recovery over there today because as a MKS shareholder I fear the same will happen to them unless the value is reflected in the SP.
Beware they are only going after its property not the business and then leave Morrison's saddle with debt.
This biding war doesn't want to end! I thought 285p would be the end of this but looking at market reaction it seems another bid could arrive...maybe £3 is not out of reach here? Either way I'm happy to hold and see how this ends...285p should be the worst case here now. GL and well done to holders.
LONDON BRIEFING: Softbank's Fortress doesn't give up on Morrisons
Fri, 20th Aug 2021 08:10Alliance News
(Alliance News) - Softbank-backed investment manager Fortress hasn't abandoned yet its effort to buy Wm Morrison Supermarkets, despite the UK grocer late Thursday agreeing to a new GBP7 billion offer from rival bidder Clayton, Dubilier & Rice.
Fortress on Friday asked Morrisons shareholders to take no action on the new CD&R bid, saying it is "considering its options" with respect to the all-cash offer it made at the start of July and increased at the start of August. It said it will make a further announcement "in due course".
Started: raghusn, 21 Aug 2021 07:58
Last post: fairdealer20, 21 Aug 2021 16:25
Probably a case of the last man standing and then if necessary the TOP would vet the deal.
It could run a while yet especially if the $/£ rate changes.
Anyone knowledgeable on these matters? What would be the calendar the take-over panel is likely to set for the next stage of bidding process? And how many rounds of bidding before an auction is called? Thanks for any thoughts.
Started: Kingalf, 19 Aug 2021 18:24
Last post: Taverham, 19 Aug 2021 20:24
Bloomberg say they are submitting a revised bid today ! Lets hope it starts with a 3 - I doubt it will but who knows!
CD&R are certainly leaving it late again, unless the offer is in, and the board are sitting on it.
Last post: Justinluck, 18 Aug 2021 19:03
Well hopefully all the hype and speculation will come to an end soon.....unless there is a further extension to snare in a better offer!
Now, it is expected that CD&R will have to raise its bid to at least 275p per share – but this could rise to 280p to lock things in.
Explains why sp is hovering around 280p.
Started: Suggins, 9 Aug 2021 21:56
Last post: bertram, 14 Aug 2021 10:15
Could divi be because that will be the amount of profit mrw have accrued since last divi? They would be duty bound to pay it as it is shareholders money. Just thinking.
HMRC stopped taxing dividends at source in 2016. There is an annual dividend allowance free of income tax, and the cash element will likely be taxed as capital gain, so perhaps it's a small sweetener to retail investors?
Not completely sure why the special dividend is being proposed, except it will be subject to tax at source which presumably will be retained for a short period. Thats my thinking.
Just out of interest really could anyone explain why the accepted offer includes a small dividend element rather than being all cash ? Is there some significant reason or rationale for this ?
Thanks
Started: Strode, 9 Aug 2021 16:29
Last post: fairdealer20, 9 Aug 2021 20:05
In the earlier statement, all parties including Fortress, have agreed to the revised date.
Even though the BOD have agreed to recommend the Fortress offer, they are duty bound to consider any further offers. Remember Shareholder Approval is still required whatever the outcome.
Looks like a lot of profit taking. . . taking place.
Plus all those who jumped in very early this morning at 280 plus after
reading the sunday papers are nusring a little loss.
What wories me slightly, just very slightly, is the possibility that Fortress will either
lose patience, or become insulted by the fact that allowance has been made to
CD&R giving it more time to produce a better offer, which will certainly have to be
in the region of 2.84/ 2.86. So that will leave Fortress out, meaning they will have to
counter . . but will they?
Moriisons is worth £3.00 and any price under that is a steal. If fortress come back with
a counter (and are not upset and insulted) they will have to come within the region of
£2.90.
I do still think that Amazon are in the background somewhere. If I am right they could well
come in at the last minute with closer to £3.00
Started: Kingalf, 9 Aug 2021 11:14
Last post: Ksabir, 9 Aug 2021 11:33
Was exactly the case recently with KAZ shares….market correctly anticipated the price of three bids and never went above the final bid, although the chances of acceptance were low…seems like 280p is the max here
Funny how the share price seems to anticipate and adjust accordingly, just prior to an improved bid being announced.