Hi Grezzz,
It looks like sloppy reporting to me.
I'd have thought that it would be subject to "due diligence" on both sides, shareholders on both sides voting in favour, regulatory approvals (if required), etc etc, which is why an extension to the deadline was asked for and agreed. As well as this being an all-share deal, so the "acquirer" doesn't need to take on a load of extra debt, the other main difference from most other "takeovers" that I've seen is that in effect SMDS management are recommending it to their shareholders rather than saying "shareholders are advised to take no action because we're going to negotiate a better offer".
All the best, Mike.
Hi Trouts,
"We're actually at 346p. What does this suggest?"
To me it suggests 2 things. One that the market is factoring-in a possibility (if not a probability) that this won't actually happen. There could be sufficient shareholders on either side (SMDS, or MNDI) that vote against it to stop it happening - SMDS because the "deal" isn't high enough, and MNDI because it's giving too much of a premium to SMDS. The other is the "time value of money" - this whole process could take several weeks if not months. But there again, what do I know?
Whatever happens, ATB!
Mike.
Thanks Oldfortyniner!
I think I'll be watching the Mondi price like a hawk this morning - it seems so far to be creeping upwards - 1,358p as I write.
Thanks johnychainlocker!
We can but hope!
Dear all,
The relevant key sentence in yesterday's "joint" MNDI/SMDS RNS announcement seems pretty clear:-
"Based on Mondi's closing share price of 1,381 pence per share on 7 February 2024 (being the day prior to the commencement of the offer period), the terms of the Combination would represent an implied value of 373 pence per DS Smith share and a premium of 33 per cent. to DS Smith's closing share price of 281 pence per share on 7 February 2024 (being the day prior to the commencement of the offer period)".
So the SMDS price is now linked to the MNDI price, rather than to any cash figure.
Given that the MNDI price was about 1,344p when I started to type this, that puts SMDS at about 363p.
(373p x (1344/1381)).
However, the MNDI price has now risen a bit, to about 1,352p, which would put SMDS at about 365p.
I'm guessing that SMDS management would have consulted with a number of large shareholders before "agreeing in principle" the construct of the offer, and therefore MNDI don't have any incentive to increase the offer, unless another bidder comes in.
The MNDI share price would have to go above 1381p for the "implied value" of SMDS shares to go higher than 373p - what's the chance of that happening?
ATB, Mike.
Okay all, thanks for the views and knowledge re Mondi. The bottom line is that the important deadline is 5:00pm, not 3:00pm. The current price action of SMDS doesn't seem to be giving much away as to what may happen (or not happen!) by the deadline!
Wayzgoose,
"with Mondi being American"
I thought that Mondi was British.
You're not thinking of Mondelez are you?
Hi stewart1964,
I really can't see anything specific to TRIG that hasn't also affected other renewables Investment Trusts (although we've got their next results due imminently). The share prices of many others have been falling again quite heavily in a similar pattern over the last few weeks - UKW, SEIT, GSF, ORIT and EGL to name a few. They're all now trading at a large discount to their stated NAVs. TRIG's latest quarterly NAV was down quite a lot - from memory about 127p as compared to 131p - but they say their dividend is well-covered - about 1.6x. I can see that continued high savings interest rates make high-yielding shares seem less attractive, but in my experience savings interest rates have actually typically been falling quite a lot over the last couple of months. I decided late this afternoon to do a small top-up of my TRIG holding, and bought at a price just below 100p. Things weren't helped by this site apparently not showing any RNS announcements today, but as we now know the date of TRIG's forthcoming results, and they've recently announced their latest NAV and the dividend target for their next financial year, I doubt anything major's been missed.
Hi Clued,
"5% div is hardly extortionate.".
Don't forget, though, that the SSE dividend is being rebased for the year we're now in, to 60p total for the year.
At the current share price of about £17-30, that's a yield of just c 3.46%.
All the best, Mike.
Niklol,
You ask:-
"Please may I ask where one finds these brokers views so quickly?"
A quick way is just to press the "DNLM Share News" icon near the top of the page, and read the new media articles.
What you won't get from those, though, is the broker's / analyst's detailed analysis leading to their recommendation - you'd have to pay for that.
What needs to be borne in mind though, is the context of the current share price in relation to their "target price". If their recommendation was "Sell" with a target price of £10, and the current market price was only £6, I might give serious consideration to buying!
I hope that helps, and sorry if I'm just stating the obvious.
Mike.
Hi Ross / Follow,
Thanks for the feedback and the further research / info on what the figures here on "LSE" seem to mean.
I initially thought that the "intangibles" figure for SMDS looked very high. It's interesting to compare the big balance sheet numbers of SMDS with those of SKG, a similarly-sized company which I believe is in broadly the same line of business (although I don't have a holding in SKG and don't follow it at all closely).
For SMDS, Intangibles (£2,938m) as a percentage of NAV (£4,087m) is about 71.8%, so NTAV would be about 28.2% of NAV.
For SKG, Intangibles (£2,672m) as a percentage of NAV (£5,038m) is about 53.0%, so NTAV would be about 47.0% of NAV.
Quite a big difference. Although, as I said, I don't know much about SKG, I seem to vaguely remember that it came about through a merger of 2 large companies, rather than just through acquisitions, which might go some way to explaining the difference.
Putting that aside, SMDS share price now seems to be sliding even lower today... And so is SKG - their share prices generally seem to behave very similarly.
All the best, Mike.
Hi gwilliams71,
I can't see anything specific to just ORIT. All the infrastructure investment trusts, and maybe particularly those focused on "renewables", seem to be going the same way. To name just a few, look also at 3IN, EGL, GSF, TRIG and UKW today and over the last few days. There's evidently something systemic going on, and whether it's just the high interest rates going on for much longer than originally hoped/expected, or whether it's something else as well, who knows?
Whatever, all the best, and let's hope the pain doesn't go on for too much longer!
Mike.
Hi Follow,
Sorry, I've only just seen your posting, but with such a big difference I think it's a really important comment/question.
Whilst this "LSE" site is a very useful place to find lots of information quickly, particularly when one has holdings in lots of different companies, as I do, I tend not to rely solely on the figures shown in it, as some are out of date, and some seem to be just plain wrong. Best to go straight to the company's last Annual Report or similar, even though that can take a lot longer.
I've just seen a possible explanation for the huge difference in figures.
They state that NAV is £4,087m, and that there are 1,377.45m shares, which would be about £2-96 per share.
However, if from the "assets" figure you take off the figure for "Intangibles", £2,938m, you are left with £1,149m. If you then divide that figure by the number of shares, you get 83.415p per share - remarkably close to their figure of 83.42p per share, and possibly too close to be a coincidence!
In that case, their "NAV per share" figure of 83.42p is not actually NAV per share, but NTAV per share, so it's wrongly labelled. NTAV is Net Tangible Asset Value.
I hope that this might be of some help, and doesn't just lead people astray - please note that I am *not* a formally-trained accountant.
All the best,
Mike.
PS: "Intangibles" includes things such as assessed value of brands, "goodwill" (where they've bought another company and paid in excess of the "book value" of that company), etc etc.
Hi Krusty,
"All the others have been at a discount, why would this one be any different?".
Are you talking about discount to market price at the time, or to NAV per share?
I have several "infrastructure" and "clean energy" ITs, and have partaken in several fundraisings. They have (of course) usually been at a discount to market value, but have usually been at a premium to NAV. The most recent stated NAV per share for GSF that I have seen, for end of December 2022, was 111.1p, and the market price is currently shown as 106p, so any fund-raise now would be at a noticeable discount to NAV. There may even be something in "the rules" that says they can't do this.
Regarding this acquisition itself, I need to read it more thoroughly but in the context that it comes shortly after another large one.
I'm still part-way through reading GSF's latest half-year report, but other things keep getting in the way... Obviously I'm mindful that it will be years before some of these acquisitions start contributing to revenue and cash coverage of the dividends.
I continue to hold, but only a relatively small holding.
All the best, Mike.
OWLS,
Enthusiasm for one particular share is one thing, but I'd be a bit wary of how many times "aandi" has been "pumping" Eqtec here and elsewhere over the last few days.
Mike.
expatwelsh, Entreprenante,
Yes, that's certainly good advice to ignore, or at least treat with a pinch of salt, the displayed buy/sell data. I frequently top up some of my holdings by small amounts when cash becomes available, and when prices look advantageous. Whilst my own trades show up (with the 15- or 20-minute delay) in the info shown here on the "LSE" site, with the correct number of shares, I'd say that probably as much as a third of the time my "buys" are shown as "sells" or vice versa.
AbjectPerformer,
Regarding averages, of course if you're measuring them to assess your own performance you can do it any way that suits you. However, if you're keeping records for tax purposes, ie CGT implications, I don't think it works in the way you describe. In the UK (it might be different if you live somewhere else), if you have a holding of particular shares that you built up by buying more than one tranche, they are all treated to have been bought at the same average price (called a "Section 104" pool or holding). So if you sell some of them, they aren't matched to the price of the ones you bought most recently, or bought first (last in, first out, or first in, first out) but to the average price for the whole lot. So your average isn't changed when you sell some, it only changes when you buy more. It's all on the HMRC website - I hope that helps.
ATB, Mike.
Hi Tom78 and Bobsto12,
This, I believe, is what is called the "interest-streaming regime", and it seems to be something that several infrastructure ITs do, including some I have shares in. Look at "ORIT" as another example.
I imagine that it won't be done for the benefit of individual shareholders (every person's circumstances of course being different) but for the benefit of the company (and thereby for the benefit of its shareholders as a whole).
If the shares are held in an ISA, I may be wrong, but I think that the difference and designation in practical terms would be purely academic. If they're not held in a tax-free wrapper, then of course the difference may have tax implications for the individual.
ATB, Mike.
Hello again LaHerb,
I don't know if this link will help you to get what you need from SSE:-
https://sse.co.uk/help/contact-us
Sorry if it's something you've already tried.
Good luck, Mike.
Hello LaHerb,
You ask: "So did OVO take over SSE or just part of it".
Broadly SSE sold-off their "retail" bit to OVO a couple of years ago now.
I was a customer of SSE before the retail part was sold off, so I'm going through all the changes, which are evidently affecting different customers at differing times. For a couple of years OVO could keep using an "SSE" name and logo, etc, for customers who were affected by the sell-off, but now, as we speak, my account has been "properly" rebranded as OVO. Friends of mine who were also original SSE customers are having similar things happening, although their individual timings are all slightly different.
As an individual I, and probably you, don't have direct dealings with the SSE plc which is the subject of this chat board. I do have shares in SSE, hence my interest.
Very broadly SSE plc now is primarily a generator and a developer of renewable energy (primarily wind farms), they have some gas generating plants, and they operated distribution networks for Electricity and Gas although those have been progressively sold off. The gas was through "SGN" (Scotia/Southern Gas Networks) who manage the gas pipes to houses in my part of the country, but I think SSE plc has completely sold out of that now. Similarly, Electricity was through SSEN, but I think SSE has partly sold out of that now.
The OVO and "SSE" that we as private individuals buy our electricity and gas through are nothing to do with SSE plc which is what this chat board is about.
I hope that helps and makes things clearer.
All the best, Mike.
Hi Kryten1,
Re your posting at 08:23 today, in which you ask:-
"Quick question guy's, as a fairly new investor does the amount of dividend depend on how many days you've held the share. ".
The simple answer is "No". With each dividend payment (with Vodafone there are 2 a year), what it depends on is the dates you held the shares - with each particular payment you either get it in full, or you don't get it at all.
In this case, the dividend was announced on 15 Nov 2022 (if you press the "RNS" symbol near the top of the page, and scroll through the list of announcements for the one dated 15 Nov 2022 you can read their half-year results in which the dividend, with dates, was announced). The "ex-dividend" date was stated as 24 Nov 2022. If you owned the shares on 23 Nov you will get the dividend, whereas if you bought them on 24 Nov or later, you won't get it. The declared dividend was 4.5 Eurocents, and about a week before the date the dividend is due to be paid, there'll be another announcement as to what it will be in Sterling (ie in £/p). It's due to be paid on 3 Feb 2023. Very very roughly, it will be about 4p, but it depends on what the exchange rate does nearer the time.
I hope that helps.
Mike.