Brixton Share Discussion Threads

[hamsterape] 25/6/2009 11:47

Well the assumption was that there are bond covenants that
will be breached at the end of the month, triggering a repayment
demand from those bond-holders, but if they aren't keen on a Segro
take-over they may agree to waiver. There as a press article saying
that the bond-holders were calling for the managements heads due to
the poor terms ogf the take-over, but I can't see why they would be
bothered as long as their coupons get paid and their capital is safe.

[minsky] 25/6/2009 11:41

Assuming Segro are the only game in town - have you any idea what the time scales for the takeover are?

[hamsterape] 25/6/2009 11:35

The order book will be awash with distressed sellers looking to close
out after such a shock fall, regardless of what any MMs do. Some
of them may have been caught out too, don't forget.

[warmsun] 25/6/2009 11:29

I am still praying we will get a 'white knight' prepared to offer more for the company, but as I said in my last post I would have thought that the RNS might have moved the share price up if MMs thought there may be someone else interested in our company.

[hamsterape] 25/6/2009 11:24

It's entirely possible that someone else has seen the potential
for the derivative portfolio provision to be reduced over time
and therefore perceives some hidden value, in which case a large
stake will give them a veto on the take-over on the current terms.

It might be good. At least we know there are big buyers
prepared to step up to the plate, for whatever reason.

[warmsun] 25/6/2009 11:05

I assumed people would read the RNS.

Do you think ING are simply a 'friendly' holder for SGRO? If they were not, then I would have hoped for some upward movement in the share price

[hamsterape] 25/6/2009 10:56

You didn't think it was worth putting in your post that ING
Fund management have just bought 16m shares and are now
holding 17.5m before asking people that question?

[warmsun] 25/6/2009 10:38

Anybody have any views as to whether or not todays RNS will make any difference as to who our new owners will be?

[scburbs] 24/6/2009 14:12

Kibes,

Not sure it is reasonable to say that there are no immediate winners in the deal.

The acquisition would be massively accretive to SGRO NAV per share (although it does depend on how dilutive any rights issue is).

[sommet2] 23/6/2009 22:06

kibes,
It depends on how heavy the RI is.Also I think SGO will want to sell off some of the BXTN property where it does not meet their requirements.So we could see £300m + of sales but over 12 months into a stablising market as opposed to BXTN having to sell quickly into a buyers market.It's all about time and the ability to sell property in an orderly way.SGO already has substantial cash and it would make sense to use some of this and replace it with property sales later than go for a big RI.

[kibes] 23/6/2009 19:45

There are no immediate winners in this deal. BXTN shareholders get a lousy price and Segro shareholders get a rights issue which will undermine their share price. Agree though that when Segro bottoms out it would be a great buy. The combined company will have both adequate cash and excellent assets. Just needs a recovery!

[willyworm2] 23/6/2009 17:25

You could argue 1.75x minus a small discount to take account of the possibility that the deal doesn't go ahead??

Also, if SGRO does have a rights isssue their share price will surely fall, further undermining BXTN. I can't think of any rights issue that hasn't had the price pressured lower around the issue, only to rally thereafter.

I sold out yesterday but continue to watch, if the deal looks as if it will go through and SGRO do have a rights issue, with the share price day falling back to 18p (=32p BXTN) then I'll be back in. Doesn't matter for long-term holders but there may still be further short-term downside.

[sommet2] 23/6/2009 16:51

dodopoo,
Assuming it goes through I believe it will be very good for the long term.There should be significant cost savings putting the two companies together because they operate in similar areas and in similar markets.Once the commercial property market turns up , which it will,the new group will be a major beneficiary.

[dodopoo] 23/6/2009 16:41

And would this "only game in town" be any good for the long term?Hope so.

[hamsterape] 23/6/2009 16:40

Whatever the Segro price Brixton will be 1.75 times that plus a
small premium to account for the slight possibility of improved
terms or an alternative bidder.

[warmsun] 23/6/2009 16:23

All very disappointing.

[fireplace22] 23/6/2009 16:16

Sure I dont know more than you but I would say the bid from SGRO is the only game in town.

[warmsun] 23/6/2009 16:14

Would someone who knows much more than I do, plse explain todays share price movement

[hamsterape] 22/6/2009 16:41

Good point that - the Segro offer underpins the price somewhat,
so you're really paying a small premium on the off-chance of a
better offer from somewhere (perhaps even from Segro themselves).

Don't think people should read too much into the buy vs sell volume
on the order book, though.

[hyvast] 22/6/2009 16:25

I held on, as I do not thing this will be the last offer !

[spud brown] 22/6/2009 16:08

probably punters hoping for an eventual higher bid or fresh bidder, and at this price there is nothing to lose, as shares get swapped for segro

[martincc] 22/6/2009 15:44

Seems plenty of buying at 44p, L2 432k v 275k

[warmsun] 22/6/2009 14:47

Is it any wonder the financial markets are a mess!!

[hamsterape] 22/6/2009 14:44

Oh, well that's nice of brokers Arbuthnot - move their target to 80p from 100p
in March then raise their target from 21p to 39p in June but completely
fail to put out a 21p target during the intervening weeks.