Energy Assets Share Discussion Threads

[rivaldo] 22/4/2016 13:33

Hello, what's happening here? Bid price is 685p, and buying at 686.21p now...someone betting on a rather unlikely (imo) rival bid?

[deltrotter] 18/4/2016 15:59

gbb, eh?

The boards of Energy Assets and BidCo are pleased to announce that they have reached agreement on the terms of a recommended cash acquisition by BidCo, a newly established company indirectly wholly owned by the Alinda Funds, which are controlled and managed by Alinda, of the entire issued and to be issued share capital of Energy Assets (the "Acquisition").

[gbb483] 18/4/2016 15:54

I wonder what your ulterior motive is, not that anyone cares.

[maiken] 18/4/2016 15:07

gbb483.better to keep quiet and let people think you're an idiot than open your mouth and prove it

[gbb483] 18/4/2016 14:58

Given that EAS haven't responded, this must be the first they've heard of it. I guess they're trying to work out whether to endorse or renounce the bid.

The longer it takes the board to respond, the less they like it. In which case two senarios are possible, an improved offer or no offer.

[ascov] 18/4/2016 12:34

Thanks all. I'll sit on my hands for a bit and see if anything begins to develop but Nurdin's question is a good one.

[nurdin] 18/4/2016 12:28

Indeed Riv.Wonder how long it will take for the deal to go through..

[rivaldo] 18/4/2016 12:07

The quandary is whether to sell now or wait for the extra 5p and/or the spread to close further. A nice problem to have I suppose :o))

[eburne1960] 18/4/2016 11:54

Mixed emotions with this - on the one hand it's one of my biggest ISA holdings, so definitely a result (particularly in the current markets) - on the other hand, I had this down as one that would keep me very comfortable when I retire. Looks like I will have to research SMS now!

[trustman] 18/4/2016 11:18

As one of the earliest posters from 1 onwards delighted to see this result.
As said at the time SMS also bears watching too.
Congrats to all. T

[sharw] 18/4/2016 11:15

The offer has been recommended, not accepted. There are two types of takeover: a bid (where individual shareholders have to accept) and a 'Scheme of Arrangement' which is the case here. That means a vote of shareholders, the result of which is binding on all. It is one of the few instances where tiny shareholders come into their own as one of the votes is per shareholder and not per share.

If you sit on your hands and the vote goes through you will automatically receive the 685p cash per share. Until the scheme goes through you can always sell in the market but you won't get so much - 678p at the moment but the gap will narrow with time. Sometimes the market price goes above the takeover price - if that happens it means that there are rumours of a counter-bid.

[ascov] 18/4/2016 10:39

Being a bit new to this, any wise advice ? They've accepted the offer. What do I as a tiny shareholder do now ? Sell? sit on my hands ?

[nurdin] 18/4/2016 07:42

oops..excited finger Riv ! Now corrected

[wjccghcc] 18/4/2016 07:39

Yup. One of my larger holdings :-)

[bigbigdave] 18/4/2016 07:31

Well done holders here!

[rivaldo] 18/4/2016 07:31

Fantastic :o))

It's 685p nurdin, so not quite that much! I'm very happy with that, and it looks a done deal given the acceptances.

[penpont] 18/4/2016 07:29

Yes, although the Co no doubt had a bright future independently, have to say I'm pretty pleased with that!

[nurdin] 18/4/2016 07:24

Well well well...685p cash offer!! 40% premium to current price.

[pj 1] 11/4/2016 19:23

On the side lines, chart could be a give away here (hopefully!)

[cambium] 11/4/2016 18:52

Some of that was me

[rivaldo] 08/4/2016 09:56

Starting to react - buying coming in at 490p.

[nurdin] 07/4/2016 10:37

Not much of a reaction from the market.Shame.

[edale] 07/4/2016 07:56

Good news and we should get a year end trading statement in the next ten days.

[rivaldo] 07/4/2016 07:22

RNS'd contract win just out - at £6m this is "the largest Utility Networks contract to ever be secured by Energy Assets"....

[rivaldo] 22/3/2016 16:20

SMS' divi is de minimis at less than 1%.

SMS have £80m net debt against a £344m m/cap. EAS have £69m net debt against a £137m m/cap, but have a gas meter portfolio with a £93m book value and have 62% recurring revenues (similar to SMS' 64%).

SMS do appear to be winning more recent contracts.

But overall the differences aren't enough to justify such a large discrepancy in valuation.

The run-up into the trading update next month and then into the results should serve to push EAS' share price and make some of that discrepancy disappear.