||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Real-Time news about Invensys (London Stock Exchange): 0 recent articles
|donkeystone: Bakero, no but yeah but no but Lloyds will be the new home. The big burst of growth in the share price is over, so for me, unusually, it is about return of a divi. I already have a few.
|bakero: Hi donkeystone,
It is pretty much as you describe.
"Under the offer Invensys shareholders will get 0.025955 New Schneider Electric shares and 372 pence in cash"
So multiply your current shareholding by £3.72 (cash) + (0.025955 * SU share price * EUR to GBP conversion rate)
I'm away at the moment so can't check my current calculation of that easily, but since the offer have reckoned we are trading around 2.5% - 3.0% under what the offer is worth.
Not sure what your (or my for that matter) broker charges for selling SU though or conversion rate they will apply (can be held in ISA though at least)
|donkeystone: If some kind soul has a spare moment could they give me the algebra/excel formula that calculates the fluctuating value of the Schneider offer per existing Invensys share?
Schneider share price x no of shares x euro or whatever it is plus cash??
I can't make it work
I think Invensys share price has climbed above offer price because Schneider shares have increased in value since Tuesday. Tabled offer based on Schneider share price of 58 euros, now its nearing 62 euros.|
|waldron: Schneider Electric Agrees 502 Pence Per Share Offer for Invensys
Schneider Electric (EU:SU)
Intraday Stock Chart
Today : Wednesday 31 July 2013
By Ian Walker
LONDON--French electrical equipment maker Schneider Electric SA (SU.FR) Wednesday agreed a cash and share offer for U.K.-listed global technology company Invensys PLC (ISYS.LN), which values it at 3.4 billion pounds ($5.2 billion), or 502 pence a share and is a 14% premium to its share price on July 11.
Under the offer Invensys shareholders will get 0.025955 New Schneider Electric shares and 372 pence in cash, and will have the opportunity to change the ratio of shares and cash under a 'mix and match' election.
On July 11 Invensys said it had received an indicative offer from Schneider worth 505 pence a share, with 319 pence in cash and the balance in shares.
Schneider Electric said the deal will generate significant revenue savings of 400 million Euros ($530.5 million) a year per annum by 2018 as a result of enlarged offerings, complementary customer bases and additional scale from the integration of Invensys with Schneider Electric. It also expects cost savings of EUR140 million per annum by 2016.
Invensys Chairman Nigel Rudd said the offer from Schneider Electric represents an attractive value for shareholders and reflects the future growth prospects.
Write to Ian Walker at email@example.com|
|jgp212: Here it is:
By Steve Moore - Friday 12 July 2013
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Back in March I commented on FTSE-250 provider of industrial software, systems and control equipment, Invensys plc (ISYS), concluding, with the shares at 366p, that "though there is macroeconomic risk, Invensys looks a solid large-cap investment proposition at current levels, with potential future takeover upside" see HERE.
The 'potential takeover upside' note was derived from the company having announced last year that it had "been in highly preliminary discussions with third parties" and had "received a highly preliminary approach" from industry giant Emerson Electric Co, as well as comments from brokers Morgan Stanley (which considered the remaining assets in the Invensys portfolio as "potentially more attractive than those in (the since disposed of) rail systems, due to desirability of installed base and higher margin software") and Oriel ("the simple question" for potential acquirers from here "is 'can you afford the double whammy of missing out on the critical mass/synergy benefits and allowing a competitor to become much stronger?' Answer no").
The £1.742 billion disposal of the company's rail business to Siemens completed on 2nd May and Invensys has subsequently returned £625 million (76.7p per share) to shareholders. Alongside this, the company undertook a 4-for-5 share consolidation "in order to maintain (subject to normal market fluctuations) the market price for ordinary shares at approximately the same level as prevailed immediately prior to the implementation of the return of cash".
The shares had since risen to close yesterday at 440.1p, though are now further ahead at 508p following an announcement that the company;
"...has received an indicative offer from Schneider Electric SA of 505p per ordinary share (the 'offer price'), of which 319p per ordinary share is in cash and 186p per ordinary share is in new Schneider shares... the board of Invensys has indicated to Schneider that it is likely to recommend a firm offer at the offer price. Invensys and Schneider are in discussions about the details of the possible offer which is conditional on, amongst other things, diligence."
This was swiftly followed by a statement from France-headquartered, multinational power equipment maker, Schneider noting it;
"...confirms that it is in the early stages of discussions with the board of directors of Invensys regarding a possible offer... Schneider Electric believes that the strategic and financial rationale for this transaction, if consummated, is compelling... The enlarged group would significantly expand its access to key electro-intensive segments where Schneider Electric offers leading low and medium voltage as well as energy management solutions. It would also gain a leading position in the fast-growing software business for industrial operational efficiency."
The Invensys share price reaction today suggests the market believes other industry participants may be thinking along the (above noted) lines of Oriel and the Schneider statement certainly further emphasises the attractions of Invensys. However, the cautious investor should bear in mind that the current position is that "there can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be made", with due diligence still to be undertaken and other items agreed. Following today's announcement, Schneider is currently required to either announce a firm intention to make an offer for Invensys or announce that it does not intend to make an offer by no later than 5pm on 8th August.
The Analysis & Comment section of ShareProphets is independent financial commentary. These blogs do not represent the opinions of ShareProphets Ltd. and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
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Yes indeed it is quite strange the way the share price fluctuates during the day. Two weeks ago it opened at 430 only to fall back fairly quickly.
Back in November When Siemens stepped in, the share price shot up from 220 to 280p. Since then it has gone from strength to strength. What surprised me was why the share price didn't jump to 400 straight after Siemens played its hand.
The burning question is how long will the share price hold up while waiting for the bidding war to commence, if it ever starts. For my part, last week I sold 20% of my Invensys holding to hedge against the possibility that a bid will not materialise. I suspect that if a bid is not tabled in the next couple of months the share price will start to tumble back to around 250!!!
Yours and other posters thoughts on the bid / no bid scenario most welcome.|
|bobsidian: "so I will be £65 worse off"
Not necessarily so. If this rampant bull market continues it is not inconceivable that, even after the effective dilution of your existing stake, the share price of ISYS moves yet higher in line with the market.
Take a look at PSN. It too involved itself in a return of capital. The share price of PSN did indeed correct after the return of capital but then proceeded to move yet higher.|
|bobsidian: "I get a PE of 11X 2014 after deducting the cash."
Are you looking at the underlying EPS of the remaining business after the sale of Invensys Rail ?
If the current share price is used then after the return of cash ISYS would be trading on a current P/E ratio of around 37 times the underlying earnings of the remaining business. Is that the pace of growth in earnings being intimated by ISYS for 2013/14 for the remainder of its business ? Was the underlying earnings growth in 2012/13 of the surviving elements of the ISYS business not 25% ?
You are asking a lot for ISYS to be able to generate such a pace of growth in earnings on a sustainable basis.|
|bobsidian: One look at the share price performances of SL. and PSN on the lead up to the day of similar capital returns shows just what can happen.
It would not be surprising to see ISYS rise up to the date of the distribution. However, unlike PSN or SL. their share price performances are currently underpinned by strong earnings growth. ISYS is likely to lack such EPS growth.|
Invensys share price data is direct from the London Stock Exchange