Afh Financial Share Discussion Threads

[quepassa] 24/2/2021 14:33

Portfolio Adviser:-

hXXps://portfolio-adviser.com/mark-slater-rejects-225m-afh-takeover-bid-from-us-private-equity-giant/

[jrr1] 23/2/2021 09:46

slater blocking bid, should be interesting hopefully get some more £.

[quepassa] 15/2/2021 09:24

An article which appears in today's FT on page 8 goes to the very heart of the matter in my opinion as to why this is a bad offer for shareholders which goes nowhere near recognising potential future shareholder value and growth potential of AFH.

The FT article, in which AFH is specifically mentioned, is headed:-

"Buyout firms circle UK targets as low values beckon".

and is sub-headed:-

"-Stocks look a bargain against US highs"

The article mentions that the UK market has under-performed in recent times and has attracted private equity houses basically trying to take advantage of these cyclically low valuations and grab something cheap .

Many UK companies are mentioned such as Marstons, Aggrekko, AA, G4S, Signature Aviation, Arrow Global, Nucleus and AFH which have become targets to bids recently.

See FT article for full details and context.

In my opinion, this is a bad offer for shareholders who would likely see a much greater return on investment over time if AFH remained independent and followed its current growth path strategy as a listed company.

I reiterate that I personally have voted AGAINST the takeover on grounds that it is a low-ball price by a predatory and opportunistic private equity house and does not represent fair value for a well-performing company with a bright future.


ALL IMO. DYOR.
QP

[quepassa] 11/2/2021 16:46

I have today voted electronically on all my holdings via my brokers for the TWO CONSECUTIVE MEETINGS being held on 1st. March as follows:-


- Court Meeting - AGAINST
- General Meeting - AGAINST


For info only.

ALL IMO. DYOR.
QP

[jrr1] 11/2/2021 16:26

i agree and a rival bid would also be nice....

[quepassa] 11/2/2021 16:17

Very strong.

Now offered at 468p against a 463p take-out price.

Can we dare to dream that a competing offer is in the air?

or

Can we dare to hope that there will rightly be a massive rejection by institutions and pi's alike in voting against against the derisory OPENING 463p Cortina bid which may encourage this rich private equity house to dig a little further into their VERY DEEP POCKETS?

ALL IMO. DYOR.
QP

[growthpotential] 09/2/2021 23:06

Yeh so basically this bid should only go through at 600p due to the growth opportunity ahead

[quepassa] 09/2/2021 08:41

Sector minnow Tavistock Investments have just come out today with a Trading Update which says the magic words of 'significantly ahead':-

"Consequently, the Board expects to report EBITDA for the financial year to 31 March 2021, that is significantly ahead of last year."

They also seem to be going down the sector consolidation route of snapping up small books from retiring IFA's.

Their funds seem to be performing remarkably well.

ALL IMO. DYOR.
QP

[quepassa] 31/1/2021 19:51

27th. January. Article in Investors Chronicle headed " AFH Financial accepts cheap bid"

hXXps://www.investorschronicle.co.uk/news/2021/01/27/afh-financial-accepts-cheap-bid/


Article finishes " Though the board seems keen, a better offer shouldn't be entirely ruled out. Hold and await documents at 456p".


In my opinion, these are wise words.

....and hopefully prescient words..........


ALL IMO. DYOR.
QP

[pmrleahy] 27/1/2021 20:41

Does anyone know if a meeting date has been set or if there are any rules about when this might be held?

Keeping my fingers crossed another bidder comes in with an offer that values the company more fairly...

[quepassa] 26/1/2021 14:56

1.

It is interesting to peruse FULL DOCUMENTATION for THE BID APPROACH which has now been posted to the AFHWM corporate web-site.

2.

It is interesting therein to reflect carefully upon those parties 1)which have given Irrevocable Undertakings and 2) those parties which have not.


3.

On the basis of the shareholder list on the AFHWM web-site as at 11/12/20, it is interesting to note that the following HAVE NOT GIVEN IRREVOCABLE UNDERTAKINGS;-

Slater Investments 12.11%
Merian Global 4.96%
Northern Trust 4.89%
Lombard Odier 4.59%
Polar Capital 3.8%
Rorema Beheer 3.67%


There may have been some (minor) changes to this shareholder list since 11/12/20 as an RNS today announced that Otus Capital Management have acquired a stake of 4.14%.


It would seem in my view, that if for example:-

Slater, Polar and Merian

-as small-cap specialists, jointly representing some 21% of voting rights,

were hypothetically all to vote against the recommendation, that the bid would likely fail.

In my view, small independent investors accounting jointly for significantly more than 4% would be highly likely to vote against.

This would equate to a combined blocking vote of more than 25%.

It seems to me that the institutional investors which have not given Irrevocable Undertakings are in a very strong position to ensure that they and all shareholders get the very best deal - whether that means AFH remains listed and continues on its strong growth path or the offeror is forced to table something more realistic.


ALL IMO. DYOR.
QP

[quepassa] 26/1/2021 13:22

I have not heard a single word of positive feedback from any investor, whether private or institutional, since yesterday's derisory 463p bid was announced.

It appears to me that there is a very strong likelihood that SIGNIFICANTLY MORE THAN 25% of shareholders will vote against the recommendation.

On this basis, I believe that the current terms of the bid are destined to failure.

If the current bid collapses,so be it. And I hope it does.

The prospects and outlook for AHF - as outlined only last week by both the Chairman and the CEO- are very encouraging indeed and would in my view undoubtedly lead over time to a far better outcome for shareholders than accepting a low-ball bid from a predatory USA private equity company.


ALL IMO. DYOR.
QP

[growthpotential] 25/1/2021 22:42

Yeh need atleast 550 surely (?)

[quepassa] 25/1/2021 14:01

One notes that highly-regarded small-cap champion Slater Investments are the second largest shareholder in AFH and hold a 12.11% stake as at 20/12/20.

One hopes that Slater use their significant shareholding voting rights wisely and reject the current/initial bid on the basis that it significantly undervalues the Company.

A mere 7% uplift compared to last year's price is woefully inadequate in my view and significantly undervalues the future prospects of AFH.


ALL IMO. DYOR.
QP

[quepassa] 25/1/2021 10:43

IN MY OPINION THIS IS NOT A GOOD DEAL IN ANY WAY FOR SHAREHOLDERS.

THIS OFFER OF 463p SIGNIFICANTLY UNDERVALUES THE FUTURE GROWTH PROSPECTS OF BURGEONING AFH.

THE SHARE PRICE HAD ALREADY HIT 430p EARLY LAST YEAR PRE-PANDEMIC. AND ON THAT BASIS REPRESENTS A MEAGRE 7% PREMIUM COMPARED TO A YEAR AGO.

THE TABLED 463p IS IN MY VIEW A DERISORY AND TOTALLY UNACCEPTABLE OFFER.

BIDCO NEED 75% TO PASS THE VOTE. - AND THEY CURRENTLY HAVE NOTHING LIKE THAT - A MERE 33%

I WILL MOST CERTAINLY NOT BE VOTING IN FAVOUR OF THIS LOW-BALL OPPORTUNISTIC BID FROM A PREDATORY USA PRIVATE EQUITY FIRM.

THIS IS, IN MY VIEW, A BAD DEAL FOR SHAREHOLDERS AND UNLESS A SIGNIFICANTLY INCREASED BID (WHETHER FROM CORTINA OR ANOTHER BUYER) IS TABLED, I WILL BE VOTING AGAINST.

THIS BID SHOULD IN MY VIEW GET THE RESPONSE IT DESERVES FROM SHAREHOLDERS - A RESOUNDING NO AND A BIG THUMBS-DOWN.

ALL IMO. DYOR.
QP

[1pvh] 25/1/2021 10:14

My largest holding. Thought it would happen but not at the moment Think in 2/3 years worth quite a bit more. Without sounding to greedy

[djokovic1] 25/1/2021 10:04

Will vote against. Valued too low

[barbello] 25/1/2021 09:52

Actually there might be different conversion terms on a takeover so ignore my calcs pls

[barbello] 25/1/2021 09:44

Plus accrued interest hopefully

[barbello] 25/1/2021 09:38

Indeed! I reckon if conversion price is 420 then 463 is equiv to 5511

[davebowler] 25/1/2021 09:36

Saves on fees though at Sharecentre if they are valued at zero!

[barbello] 25/1/2021 09:29

They were a nightmare to buy as none of the platforms could get their heads around the £5,000 nominal so mine are generously valued by the share centre at zero :) I will have to be on top of the process and give them clear instructions and make sure they reply so that I can file it away for inevitable stewards.