|Center Parcs Group
||EPS - Basic
||Market Cap (m)
|Household Goods & Home Construction
Real-Time news about Center Parcs (London Stock Exchange): 0 recent articles
|alanrex: from the times..
Blackstone makes play for Center Parcs UK
By Dominic Walsh
BLACKSTONE, the American investment firm, yesterday announced the acquisition of Center Parcs UK, the quoted holiday village operator, in a deal worth £265 million.
The US firm, which is offering 80p a share, is expected to follow up the purchase by seeking to buy the four property assets owned by Royal Bank of Scotland and Hugh Osmond's Sun Capital, and leased to Center Parcs UK.
Analysts believe that Blackstone has held preliminary discussions with RBS and Sun Capital over a deal worth about £800 million. However, one industry source said the American firm may face competition to buy the assets from other property investors.
Some analysts suggested it could also face competition for Center Parcs UK. Although its bid has been recommended by the board, Center Parcs share price closed up 12p at 81p - above the 80p offer price - amid hopes of a counterbid. The offer values the group at £205.4million, or £265 million including debt.
The obvious potential counterbidder is Pierre & Vacances (P&V), the French company that owns the continental Center Parcs business. P&V has previously expressed an interest in reuniting the brand.
Martin Dalby, chief executive of Center Parcs UK, said the company had not sought out other bidders, but added: "Our focus was getting the best price on the table from Blackstone. If there is anybody else out there who wants to come up with a higher offer, they are now able to do so."
However, some commentators believe that if Blackstone's bid succeeds it could itself launch an attempt to take over P&V. Its deep pockets and recent track record suggests it could use Center Parcs UK as a vehicle to consolidate the European holiday park market.
The bid from Blackstone is below the 100p at which Center Parcs UK was floated in December 2003 but is a 26 per cent premium to the average price over the past six months. Since flotation it has suffered a catalogue of woes, including an outbreak of gastroenteritis at its Longleat Forest village.
Mr Dalby said the board, advised by UBS and KPMG Corporate Finance, had recommended the bid because of the challenges facing the company. In particular, it is seeking planning permission for a fifth village near Woburn, Bedfordshire, for which it would need funding of at least £130 million.
He added that most of the group's biggest shareholders had bought their shares well below the initial public offering price. He said the offer had already garnered acceptances from investors speaking for 23.5 per cent of the shares.|
|alanrex: id be surprised if a counter bid that it would be at 90p. id expect more.
i will be interested to know the terms the incumbent management have agreed if any...and im not convinced that the current shareholders will agree to this deal. the fact the share price closed above the offer, is a good indicator that there might be more in this story. i was quite irritated this morning having been a long term investor. I am a little more hopeful now. the earnings multiple paid shows the deal wasnt a great one from my perspective.
all imo dyor.|
|konkel: There are countless private equity firms who have both the cash and nouce to do it...£200m is a drop in the ocean re current size of PE deals. I repeat...why is the share price trading above the agreed takeover price??|
|samg99: I suspect that a lot of bulls on this thread are going to be disappointed over the next few weeks.
We'll see who's right soon enough. Let's revisit this discussion in, say, mid-January. I will be surprised if CPK's share price is significantly higher than the present 59.5p by then, although (obviously) I could be wrong.
Bear in mind, though, newbie share traders, that I have been trading shares for 12 years and am more often right than wrong :)|
|alanrex: lh, my guess is that the bidder (if indeed there is one) will become apparent either on the day of the resulst or in the run up to the results. Recent experience has indicated that takeovers are being reported a lot earlier, as soon as interest seems obvious. A bidder will not in my opinion be focussed on the next reulst by themselves, there is enough information in the market place for them to consider the value of the bid. Importantly, the share price has languished in recent times and now would be a better time to consider making an approach rather than waiting.
the IFRS changes were less than helpful to the share price, but the cash flow looks good to me.
all imo dyor|
|lh2375: Calm down you two !!!, No need to get all presonal, You just have different views.
You could invest in this share just for the dividend but there are higher payers which could be classified as a "safer" bet such as UU. or LLOY, but then their share price is unlikely to increase that much. I have tended to buy shares in businesses that pay a reasonable didvidend but have possible / good growth prospects (RR / RSA). This is NOT the case for CP in the near future. I'm trading this as I think it was oversold and I'm looking for a bounce back to 58p then I'm out. Whilst the divi should be maintained, they will need to raise additional capital once the 5th village has received planning approval and this will always put pressure on the share price, therefore cannot see a 50% rise in a years time, conversly can't see this going bust either as bookings seem to be very high. I expect this share to trade between 55-65p for the rest of year and after that who knows !|
|samg99: A little knowledge is a dangerous thing....
If a share price is going steadily down, month after month, even if "fundamentals" look good, I have found from long and painful experience that in 99% of times, it's the share price that is giving a truer picture of the company's state of health rather than any other factor.
No, I don't know what is wrong, but I suspect that this share has quite a bit further to fall.|
|msjones: "The difficulty that I have with CPK is that though there is a decent yield, it will go nowhere in profit terms until the Woburn site opens, projected for 2008. But to get there will add £160m debt to an already weak balance sheet. Unless I have missed something, I believe there are better opportunities"
of course there are better opportunities elswhere, i doubt very much whether CPk will sit as the best most performer in the small cap.
There is a decent yield with a good historical record and a quality brand name.
Moreover, with the world becomine ever more unstable, many people, especially those with children amy opt not too travel to distant lands prefering the security of home grown entertainment.
Although there is a credit squeeze with people mindful of expenditure, a holiday has become one of the essentials needed to survive in this stressful world.
You mention 160m but this is the cost of the build, CPk pays rent off the landlord so will be contributing a proportion of this amount and paying rent as well. How much will they contribute - my guess is in the region of 40 mill.
Still a sizeable sum mind.
You mwntion the share price will not go anywhere - possibly. But if a large investor starts accruing shares above 3% then this will provide a boost to the share price.
6% yield is respectable and the company are aking provisions to continue dividend payment despite the expansion plans.|
|msjones: A pity you have so little confidence in the stock. I understand that people get the jitters. The market relies on things such as this and drops the share price often with the intention of shaking out the waverers (of course, with cheap stock on hand they often increase the share price accordingly).
Indeed the share price has eased of from its slight increase but the more interesting thing for me is the fact that the large sells which I have been monitoring daily for some six months now, seem to have petered out.
It will be noteworthy to see whether these resume or are curtailed. Presently, there is just a steady stream of small purchases, but no big buyers.
Moreover, when a share slides, it generally slides more steeply than when it rises. Consequently, i am looking to see if a trend line of a more shallow incline is starting to form (significantly you'll notice that it hasn't yet made a new low). If this is the case, then the share will begin to consolidate and rise gradually.
|msjones: SamG99 i agree that typically more shares are sold when the share price is rising. The fact that a sell off is ocurring while the share price is rising is no cause for concern in itself. However, while that is the case with CPK, the trouble is that this sell off has been going on for some months with no seeming end in sight whether the share is rising or falling.
Even this recent newspaper article has not seemed to stem the flow (unless someone is secretly buying the stock and put in an order and it has not been executed as yet). If there are more sellers than buyers over the medium term then this spells only one thing (unless good news pops up), the shares will eventually fall.
As you say, all it does is get on board those looking for a quick profits.
I also agree that this price is easily achievable. If a takeover comes along then a healthy jump in price will acrue.
To pin my colours to the mast, I expect the shares to turn tale myself and head back downwards. Its only the market makers who have decided to increase the price at the moment. Standard policy when managing a steady decline in the share price.
Center Parcs share price data is direct from the London Stock Exchange