Home Reit Share Discussion Threads

[spob] 03/2/2016 13:30

Well Jonny that depends as always on the price offered

Shareholders will decide not the management


Suffice to say i'm not expecting another offer

But never say never

[jonny33] 03/2/2016 13:12

There is no second bid coming, the management teams of both companies have been working on this deal since November, they (Home Retail) are not going to jepodise this because someone sticks their hand up now and says I want to play, to do so risks loosing the Sainsbury deal.

Remember this is not a hostile take over but a collaborative deal where both parties are happy, to entertain a third party now will break up the relationship which has been built and if the third party break off, there will be no going back to Sainsbury's.

[katie priceless] 03/2/2016 12:55

You think so , i can't see it, if there was then the share price would be near to 159p - 160p

[mornington crescent] 03/2/2016 11:23

the chart seems to imply a higher bid is coming

[fizzypop] 03/2/2016 10:00

Whether or not the deal goes ahead the payment by HOME of the two capital returns (25p+2.8p) is now guaranteed according to the RNS although the ex-divi date is not stated (but could be by the bid completion date of 23 Feb as I read the RNS). Thus the extension of three weeks has clarified this fact for HOME shareholders.

[scapital] 02/2/2016 21:45

Amazon opening 300-400 physical stores in the US.

[fizzypop] 02/2/2016 11:40

I am sure Walmart will consider 3 weeks time enough.

[imperial3] 02/2/2016 10:50

Sainsburys are up currently in a very poor market.

[haywards26] 02/2/2016 09:49

I am confident this deal will complete. Sainsbury's want this deal, and I think Home need it..

[edmondj] 02/2/2016 09:41

Exchanging one situation of uncertainty for another, really, but such is modern retail.

[fizzypop] 02/2/2016 08:58

Deadline for offer completion now 5pm 23 Feb.

[jonny33] 02/2/2016 08:53

Hi Careful, this is the worrying bit, Sainsbury's shares will be diluted and may drop in price so you'll end up out of pocket when everything has shaken it's self out.

[careful] 02/2/2016 08:50

when you do your calc remember it is 321 Sainsbury 'new' shares.
adjust the value to account for the newly issued shares.
must be in the mid 150p range, ok .
growth potential at SBRY.

[jonny33] 02/2/2016 08:37

Fizzypop, well spotted I've updated the calcs and it now equals the bid priced announced £1.61

[fizzypop] 02/2/2016 08:30

Jonny33 ... it's a lot closer than that if you include the 2.8p Additional Capital Return.

[edmondj] 02/2/2016 08:21

The "possible" tag is surely a legal compromise in a situation of an impending timetable deadline, versus the prudent need for due diligence.

Sainsbury's has looked intent all along, it mainly being an issue of price.

[redartbmud] 02/2/2016 08:18

Yvonne

It is only a POSSIBLE offer. Not agreed yet and may not happen.

red

[edmondj] 02/2/2016 08:13

Wow, hope is alive!

[yvonne] 02/2/2016 08:11

does anyone know if they think the 25p returned to shareholders might be backdated to shareholders on the registar on day before Homebase sale was announced?

[simon templar qc] 02/2/2016 08:06

Problem with mix and match no one knows which way S shares are going shorters think they are overvalued.

Hence H shares down today.

[edmondj] 02/2/2016 08:03

Odey now twice wrong, going short HOME (before the bid approach and during negotiations, along a rationale the two sides would not agree terms),although Lansdowne Partners with (one of) the largest short positions in SBRY are generally no fools.

[simon templar qc] 02/2/2016 07:53

The other risks are Sainsbury's one of the most shorted shares but that could change. No position folks just watching!

[jonny33] 02/2/2016 07:50

I've done some maths on the deal please correct me if this is wrong

1000 shares @ £1.61 = £1610

25p returned from Homebase deal and 55p returned from Sainsburys plus 2.8p dividend= 82.8p returned

1000x0.828 = £828

1000 Home shares become 0.321 Sainsburys shares = 321 shares

Sainsburys price today £2.44 x 321 = £783

You now own £828 returned as dividend and £783 in Sainsburys shares = £1611

So if you keep the shares you have to hope Sainsbury's stay above £2.44 or you'll loose value

[nw99] 02/2/2016 07:27

161 mix and match a nicely done deal