Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. 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.
IS This sudden plunge is indicating the deal is in trouble?
Quite relaxed Jatw and not that bothered if KKR decide to walk away. Bought yonks ago at under 200p so happy to wait for someone else to come along. Likely sooner rather than later now that BoD have indicated that they are willing to recommend an offer considered underwhelming by some.
What does the softening share price indicate?
Take your pick from:
The deal is not getting done at this price.
The deal is getting better by the day and will succeed.
Will there be a revised offer on Monday?
HL has set a date of 16 Jan to vote on the current proposal…….will be waiting to see what happens over this weekend…..not that PI votes will count for much…..
Jatw
You'll be fine. I sold a few on 22/08/22 at 956p so the bid of 955p is underwhelming. A result of higher borrowing costs impacting the borrow cheap, install meters, enjoy the income stream model that pushed the price to 1000p around that time.
My view is that the dissenters should be able to gain support to over 25%. if that happens the offer could be sweetened and another of the various possibilities is that KKR walk.
if that happens another suitor will arrive on the doorstep sooner rather than later
Best of luck
Lmds
I have thought some more on this and think the most likely outcome is a sweetened bid….although not by much as that makes KKR and the Board look silly. I have added this morning at 944. If I only get 955 then the deal will more than cover its costs.
You are not in an empty room Jatw, I read and agree with your points, though KKR may not get their required 75%. That could lead to them bidding at the same level and only requiring 50% . I suspect there will be a modest sweetener to smooth things over
So there is a two week delay.
The announcement states no other indications of interest have been received….and the Board wants to progress the deal.
I doubt that KKR will want to go much higher, I would think £10 including the dividend is a likely maximum, so 5% uplift may come forward next week.
If the deal proceeds on current terms, then there is only a marginal gain to be had by getting back in.
If the deal is withdrawn, then a fall should be expected…..it will be a deal delayed and should return within a year.
The meetings on 9 Jan are going to be adjourned.
The votes for the deal must be uncertain….you pays your money and takes your chances as to whether the bid will be increased or be withdrawn…..
It is a game of chicken at the moment, maybe someone with a detailed knowledge of the AIM takeover rules could comment on what happens if the bid gets a 70% vote.
Any further thoughts about how this could play out?