RE: Potential bid offer2 May 2024 15:30
Ohhh as expected, things are starting to warm up here. The company do have some decent assets, and can see the appeal of them.
However, i see no scenario where any bidder will be able to cherry pick the best parts of the business. Of course, any asset sale will need to be approved by the lenders, and this approval will cost big to cover the losses from the worthless chaff.
I am confident that unless a very...very generous offer is made for individual bar brands, it will be an all or nothing situation as it would be a headache for the lenders to break this up. This is not a liquidation, and the lenders are willing to allow this company to continue trading so i see no reason why lenders will sell best performing assets unless at a significant premium.
As things stand, an offer of anything above 1.45p for the entire company is a favorable outcome to current shareholders and would recommend current holders to accept (that is unless you believe in the turnaround plan to yield results, which i personally don't).
Talk regarding bids at 5p make no sense. Why would anyone bid over 3x more than what the company itself values the business as it currently stands at?
Any offer above 1.8p would be very generous indeed. At 2p, SHs would be crazy not to bite the hands off the offeror.