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what are the views on Arris SP movement and likely long term prospects
Looks like the market (whoever that is) still thinks there is a 1/3 chance the deal will fail. Seems unlikely to me at this stage, but what do I know? Also I note that AKO only started closing their short 4 weeks ago, they still have 3m odd shares to buy back. SP held down to let them out? Surely, that would never happen here! lol I'm still holding. GLA.
What is happening? The Boards of Pace plc and Arris Group Inc have announced that they have reached agreement on the terms of a recommended Merger of Pace with Arris, through the acquisition of Pace and Arris by New Arris. The Merger is to be effected by means of a Scheme of Arrangement under Part 26 of the Companies Act 2006. As a holder of Pace plc Shares held within your Hargreaves Lansdown Vantage Stocks & Shares ISA you have been offered the following: For each Pace plc Share: 132.5p in cash and 0.1455 of a New Arris Share
Under the terms of the Scheme, Scheme Shareholders on the register of members of Pace at the Scheme Record Time will be entitled to receive: for each Pace Share 132.5 pence in cash and 0.1455 New ARRIS Shares The Merger terms represent an indicative value of 426.5 pence per Pace Share based on ARRIS’ closing share price on 21 April 2015 (being the last Business Day prior to the Announcement) at a US$-£ exchange rate of US$1.4928 : £1 (as sourced from Bloomberg on 21 April 2015). This indicative value of 426.5 pence per Pace Share values the entire issued and to be issued share capital of Pace on a fully diluted basis at approximately £1.4 billion and represents:
From the offer on the table there is minimum 10% to be had here. Be really interested to hear from someone who understands what the market makers are doing here
New interest is being shown in another merger so it's wait and see.
Vote on 19th For each Pace plc Share: 132.5p in cash and 0.1455 of a New Arris Share. With Arris at 28.20 USD that represents (excluding charges) an equivalent price of 398 (ish) .. a bit down from the 420 sort of muted earlier
Watch carefully the next 7 days should be interesting I'm hopefull that it will be good for my pension fund but time will tell.
Well it looks like the combination of Pace and Arris is still going to take place all will be revealed on the 22nd of October.
Hi Laguerre, My understanding is that ARRS have valued and will pay £1.4bn for Pace valuing each of the 320 million shares at £4.26 each. I assume that a shareholder option is to realise £4.26 per share. Looking at the share price today, I would presume that the takeover is in doubt however a failed takeover would be damaging to both companies. We live in interesting times. Regards Dumbdog
Hi Dumbdog Thanks for the update . . . . . I have a query that lies in the phraseology of the first 29 July post: I quote Arris, where the [ongoing?]shareholder 'reward's' are annotated, followed by " 'OR' 4.265 pounds per share "? Is 'OR' used as meaning 'equal', ie., the sum of the two parts of the ongoing deal 'at that time' - so would be subject to later share price changes, or 'alternative'. ie., a 'definitive' offer to those NOT taking the 'ongoing' deal, so not so subject? A later quote by the Numis analyst adds further clouding by opining, " . . . the Pace deal is now worth £4.07"? Is the proposed 'union' likely to be permanent or merely a 'temporary' tax ploy/ convenience for Arris, if the latter it might support Numis 30% view of the 'union's' non fruition? Cheers
Why are people selling at a lower then estimated takeover price? At these low rates nows the time to buy.
Hi Laguerre, The market continues to undervalue Pace but in reality the value of Pace will only materialise at the moment of the takeover. Meanwhile the Virtual Reality take off is still on course for 2016 and the massive educational benefits of the platform is very much understated. That education will then pull the technology through into the home. The demand for bandwidth goes on and on. Regards
Reuter news dated 13 July reported: Arris in April 2015 . . . . . . . . Pace shareholders will receive £1.325 [$2] in cash and 0.1455 new Arris shares for each held or 4.265 pounds per share, the companies said. and Late Friday Arris said it was impacted by various industry consolidations, and a strong dollar, and it will continue to feel the pinch in H2, and the deal which is still expected to close by Q4 2015, will help counter industry conditions, and that, "Quoting the after hours Arris price [$29.30] the Pace deal is now worth 407p", Numis analysts wrote in a note. also Numis cut TP on stock to 369p from 443p, reflecting a 30% chance of the takeover failing. NB Following original t/o announcement Arris price was 'up to a near 15 year high of $37.39'
Yes, Q4 2015 isn't far off and I, like you, am looking forward picking up £4.20 per share. Pace share price continues to defy expectations right to the very end, offering easy pickings ;)
News from Reuters that takeover is on course for Q4 2015 http://www.reuters.com/article/2015/07/13/idUSFWN0ZQ03V20150713 Why the big drop today? By my calcs SP should be around 420p based on current Arris SP.
Anybody have any idea when the takeover is likely to take place
Are the three trades of 250K shares listed after close the same item and the result of a trade 'Hicc-up' or late info that persuaded the seller to change his mind, or this is just the trader 'squaring the book? See what tomorrow brings.
Pace Chairman Leighton to exit after takeover: Pace Chairman Allan Leighton is set to leave the U.K. group once its £1.4 billion takeover by a U.S. rival is finalised, as shares in the set-top box maker closed 34% higher.
I agree - Both Arris and Pace were both undervalued IMO due to the pending Comcast / Time Warner merger potentially being damaging to either's business, but together they are much stronger.
Good point. I'm waiting more out of curiosity than anything else, maybe greed!
The sum of the whole is greater than that of its parts. Schneider had an uplift of 50% following their takeover of Invensys.
Tid83 - you haven't followed through with your own argument. concerning the 'loan' and the earnings increment.Try reading the announcement again.