The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
One of 500k, two of 250k each.
Large number of repatriation flights in May from Pakistan:
Https://nation.com.pk/25-Apr-2020/uk-announces-9-more-chartered-flights-to-repatriate-its-nationals
There was particular mention of more than 3,000 UK nationals still stranded in Nigeria, where commercial flights are suspended until June 4, and of British crew members still on cruise ships in overseas countries. Air Partner ought to have their hands full for some time ahead, arranging charter flights to bring all these people back.
There was discussion in Parliament today on the repatriation of UK nationals stranded overseas, cruise passengers as well as air passengers. The Foreign Secretary mentioned there had been 141 chartered (non-commercial) flights so far which have brought back 30,000 people. No figures were mentioned of the numbers of people still to be repatriated but, from the questions put by MP's, it seems there are still some people stranded overseas. This discussion may be viewed on the Parliament Live website.
"Klepierre remains interested in Britain, despite failure of Hammerson deal" "According to Jefferies analysts, Klepierre might re-bid for the British peer in the coming months, but this time with a lower offer after Hammerson withdrew its bid on Intu." Https://www.reuters.com/article/us-klepierre-results-britain/klepierre-remains-interested-in-britain-despite-failure-of-hammerson-deal-idUSKBN1HX2XG
Article very critical (and very rightly critical) of Alison Brittain: Https://www.washingtonpost.com/business/at-whitbread-a-cup-of-coffee-can-cost-2-billion-pounds-gadfly/2018/04/23/602d12e2-46f7-11e8-8082-105a446d19b8_story.html?noredirect=on&utm_term=.0dd7bc6a37c3
"LONDON (Reuters) - Whitbread boss Alison Brittain believes a split between the group�s hotel and coffee shop businesses is inevitable, the Sunday Times reported ahead of the company�s annual results announcement on Wednesday." Https://uk.reuters.com/article/uk-whitbread-activist/whitbread-boss-believes-costa-coffee-split-inevitable-report-idUKKBN1HT0KN
https://www.cnbc.com/video/2018/04/19/allergan-will-not-bid-for-shire-sources-tell-cnbc.html
Just reported on Bloomberg Live.
"Activist pair make split of Whitbread all but inevitable" https://www.telegraph.co.uk/business/2018/04/16/activist-pair-make-split-whitbread-inevitable/
Pressure building on CEO to deliver increased value for shareholders: https://www.bloombergquint.com/gadfly/2018/04/16/activist-elliott-gives-whitbread-a-long-overdue-caffeine-kick
For Whitbread's management the opportunity to sell to investors if trying to avoid a break-up, "is to turn interesting international bridgeheads into material growth opportunities for both Premier Inn and Costa Coffee. For Premier Inn the focus is on Germany and for Costa Coffee the focus is China". In a preview of the full year figures due next Wednesday, Deutsche Bank said Whitbread was "one of the cheapest stocks" in the sector on a rating of circa 14.5 times earnings, even before the emergence of Elliott."
In our view it is entirely logical that the two businesses be split at some point, as the natural end game to the unpicking of the conglomerate," Numis said, seeing a demerger as easiest to execute although trade sale would clearly crystallise a control premium, with Krispy Kreme and Caribou Coffee owner JAB seen as most likely trade buyer or a range of global consumer companies. "An IPO is unlikely, unless WTB wishes to generate cash for reinvestment such as in Germany." Broker Stifel noted that "many US investors" view Whitbread in a different light from mainstream UK investors, more as an investment in hotels, property and Costa together with a lightly geared financial structure. "We consider it is very unlikely that the current management would separate the freehold assets from the hotel business, or move to a more leveraged financial structure. However, it is possible that Costa could be separated from the rest of the group, particularly if an attractive offer arose for that business." With the current UK consumer outlook and Costa's difficult recent trading, Stifel was "not convinced" that a demerged Costa would attain a higher rating than Whitbread currently does. "Such a step may, however, be a move towards exploiting value from both parts of the group and would certainly encourage corporate activity. Our sum-of-the-parts valuation is �48.50 per share." Panmure Gordon noted that CEO Alison Brittain's tone "has become noticeably more conciliatory to shareholder demand, which will make next week's finals interesting" and estimated each turn of Costa EV/EBITDA is worth �235m/130p per share. "The challenge is why sell now when LFLs are flatling and market is worried about the high st, having rebutted demands to sell over the last 8 years when LFL averaged mid-single digit growth? If CEO Alison Brittain can demonstrate self-help initiatives are working and Costs LFLs inflect in H2 then Costa would be primed for sale. "The other angle, spinning off property, feels like a non-starter given than i) SLBs would increase operational gearing, ii) the Board consistently advocate benefits of freehold ownership, iii) WTB doesn't really need the cash proceeds." Over at Canaccord Genuity they said Whitbread was "under-leveraged" with net debt/EBITDA of just 1.1x for FY18E and circa �4bn of freehold assets on the balance sheet but pointed out that the position of the Whitbread pension trustees "potentially adds a complication to any break-up" as the last year end deficit was circa �400m with Whitbread paying �95m per annum in contributions. For Whitbread's management the opportunity to sell to investors if trying to avoid a break-up, "is to turn interesting international bridgeheads into material growth opportunities for both Premier Inn and Costa Coffee. For Premier Inn the focus is on Germa
ShareCast News) - With 10% of Whitbread shares now in activist investor hands following the emergence of Elliott Advisers, analysts from Credit Suisse, Stifel and Numis offered varying opinions on how much value can come from breaking-up of the Costa Coffee and Premier Inns owner. Elliott has confirmed that is has amassed a near-6% stake which together with Sachem Head, which revealed its 3%-plus sake in December, means roughly 10% of the shares are held by activists. Sachem has reportedly been pushing for the separation of the property from the hotel assets, a re-leveraging of the balance sheet, and the separation or sale of Costa, while Elliottt is said to just be pursuing a spin-off of Costa rather than "any other financial engineering". Whitbread shares were up 6% to 4,180p as midday approached on Monday. Credit Suisse said it saw a 26% potential upside to 4,950p as the addition of Elliott as the group's largest shareholder "will increase the likelihood of break-up". The Swiss bank believes there is "much wider shareholder support for change" and that a split of Premier Inn and Costa "makes sense", with the current price "inconsistent" with the long term competitive advantages of each business and a sum-of-the-parts valuation that implies 40% potential upside. January's update showed that current trading isn't easy, while the combined corporate agenda is "very full", with Costa facing structural challenges from its high street focus and both business striving for material UK space growth, with international aspirations, cost inflation pressures and management's saving plan alongside Costa's wide range of operational initiatives to improve positioning. If management want to fight the break-up, Credit Suisse said "other levers could be pulled", said CS, noting Whitbread's �5.4bn of freehold property, potential for restructuring the low-return pub restaurant business and for extending the efficiency mindset and the �150m cost saving target. Morgan Stanley's take was that the while the reported push for a Costa demerger is "likely leading to further speculation" that "should support the shares", as Costa is only 25% of profit/EV, "investors need to believe in more for outsized returns". A demerger of Costa "could remove the risk the business is sold too cheaply" amid the turnaround and "seems relatively lower risk" versus a disposal of hotel real estate that "risks taking on more expensive long-term leases, losing control of the asset/product, and reducing investment opportunities" or a disposal of the pub restaurants that "risks dis-synergies given nearly all are co-located adjacent to a Premier Inn". Analysts at Numis noted that the �3bn of extra value perceived by Elliott would be equivalent to 1650p per share or a 3.5x EBITDA for the whole group. "
Some broker comment referred to in FT Alphaville Markets Live: Https://ftalphaville.ft.com/marketslive/2018-04-16/
"Most hotel businesses trade at a higher market rating than Whitbread, as do most standalone coffee operations. Allowing the two businesses to trade separately could produce a 40% rise in value for Whitbread investors, it is suggested." https://www.thetimes.co.uk/article/hedge-fund-elliott-advisors-demands-whitbread-spins-off-costa-coffee-wcflxtctg ""Costa spin-off could lead to �3bn Whitbread windfall � and cost just �20m" Https://www.newsr.in/n/Business/1zj7iv5wzu/Costa-spin-off-could-lead-to-%C2%A33bn-Whitbread.htm
Or simply sell the company, sell our shares and get our cash that way. If the directors think the Kl�pierre offer undervalued Hammerson, then they ought to be forced to explain why, under their "management", the market cap is 40% below the independent valuation of the company assets. The market obviously doesn't rate the present management of Hammerson. They have failed. Time for them to get out of the way and let someone better take over and allow shareholders to finally get what they say the assets are worth. I'm fed up to the teeth with parasite managers and directors thinking only of themselves.
"Hammerson merger deal with Intu on knife edge" https://www.thetimes.co.uk/article/hammerson-merger-deal-with-intu-on-knife-edge-s33tzvtxn
Elliott Statement on Whitbread PLC Date : 04/14/2018 @ 9:00PM Source : PR Newswire (US) Elliott Statement on Whitbread PLC Share On Facebook Print Alert LONDON, April 14, 2018 /PRNewswire/ -- Elliott Advisors (UK) Limited, which advises funds (together "Elliott"), yesterday notified Whitbread PLC ("the Company") that Elliott held an economic interest in excess of 5% of the Company. As of today, Elliott currently holds an economic interest in excess of 6% of the Company. Accordingly, based on publicly available information from FactSet, Thomson Reuters, and the Whitbread 2017 Annual Report, Elliott believes that it is currently the largest investor in the Company. About Elliott Elliott Management Corporation manages two multi-strategy funds which combined have approximately $35 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds of its kind under continuous management. The Elliott funds' investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, and employees of the firm. Elliott Advisors (UK) Limited is an affiliate of Elliott Management Corporation. https://www.advfn.com/news_Elliott-Statement-on-Whitbread-PLC_77178114.html