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Is there a general plan of what people are doing here i.e. holding out for 20p or selling now incase of further "issues" in the next few weeks?
All depends on your entry level and risk/reward profile. If you got into these anytime below these levels and are sitting on at least a 10% profit, then I would sell now but it's a personal decision. There are still uncertainties, albeit minor ones now and, as we always used to say on the Dealing Desks in the old days, "It's NEVER wrong to lock in a profit". GLA
I can only speak for myself. I sold 1/3 of my holding this morning at just under 19p but kept the rest hoping to get over 19p. I am a bit surprised we're still trading below 19p but I wonder if that's down to the recent history of surprises and some disbelief that it could all finish so quickly in the end. A few bigger trades coming through this afternoon so perhaps that's a sign that the arbitrage institutions are getting involved again on the buy side. Have to wait for tomorrow's 8.3's to see. The one risk I do still see is some sort of challenge from the Germans, although personally I put this as a relatively low risk. I notice this morning's rns talks about "the parties have concluded" without defining, as far as I can see, who "the parties" are. i.e. if "the parties" include the German authorities then I would be more relaxed than if "the parties" are only Sepura and Hytera. I suspect "the parties" does include only Sepura and Hytera because of the subsequent statement that "the parties intend to move forward with the completion...". So is there a possibility that Sepura and Hytera are calling the Germans' bluff and trying to close without having formal confirmation that the Germans don't want to run a public interest review? If so, could the Germans try to get an injunction to prevent the deal closing? Low risk I think, which is why I'm still holding most of my shares in the hope of 19p plus in the coming days. As always on SEPU in particular, do your own research.
Thanks for the detailed reply :) i am left thinking this is going to go through OK - I'm only a small amount up so would quite like to wait for 20p to atleast get something back from this rough journey!
I'm confused by where further risks shall be. The RNS speaks pretty clear: "Following further discussions with the German authorities, the parties have concluded that the notification from the Federal Ministry of Economic Affairs and Energy announced 5 May 2017 will not have implications for the timing of completion of the Acquisition" "and that, following the decision of the UK government not to refer the Acquisition to a second phase review by the UK's Competition and Markets Authority announced 12 May 2017, the parties intend to move forward with the completion of the Acquisition in accordance with the timetable below: Cancellation of trading in Sepura Shares 8.00 a.m. on 25 May 2017 Latest date for dispatch of cheques/settlement through CREST 14 days after the Effective Date" So, where would the further risks come from?
ndmLSE - From the 16th December announcement: "The attention of Sepura Shareholders is drawn to the fact that the Acquisition is also conditional on other Conditions and certain further terms set out in Appendix I and to the full terms and conditions which will be set out in the Scheme Document. Sepura Shareholders should take note of the Regulatory Clearances set out in the Conditions in Appendix I, which include the PRC Regulatory Clearances. Sepura acknowledges the very high level of importance and the materiality of the PRC Regulatory Clearances to Hytera, Bidco and the Acquisition." As I said, a minor concern but PRC have not yet formally cleared it although I'm sure they will.
Hi Lionhart, I've been in many M&A situations and both parties rarely pull out from a deal. If there's an issue with a particular countries' regulations then both companies decide to still go ahead with the deal and initially exclude the problem subsidiaries from the deal and then come back later and acquire the problem entity. So, I don't see no material problem for the deal to go ahead.