Pepsi gives its blessing to Carlsberg’s £3bn deal for Britvic
A third bid for the owner of Robinsons squash could succeed with the blessing of an American ally |
CEO gets £5M and been in office for 11 years so may want out. |
#Philanderer, see what Carlsberg come back with, maybe a knockout bid the BOD cannot refuse, any offer for Britvic is governed by the takeover code not later than 5.00 p.m. on 19 July 2024..
Busy year for MnA this year what with SMDS/MNDI/IP, DLG/AGS now TATE/CPK and this one..
21.06.2024 - Carlsberg takes a disciplined approach to evaluating acquisition opportunities and will only proceed with a transaction that is strategically and financially attractive to Carlsberg and its shareholders. Any offer, if made, is likely to be solely in cash and is expected to be fully debt financed..
IF a bid is accepted I will exit and am considering doubling down at DGE which looks good value at 2500 pence and a 3.3% dividend return, with an interest rate cut not far off now Aug/Sept should draw a line in the slide to cheaper from premium and reverse the trend..? |
Laurence , this from todays Times - I can't access the full story , not a subscriber. I think they broke the original story thursday afternoon.
I've been a BVIC holder for many years and it would be a shame to see it go. I hold BAG and NICL as well.
The Times: Carlsberg is understood to be preparing to put a third bid for Britvic on the table after its unsolicited £3.1bn proposal for the soft drinks group was dismissed as too low.
citywire.co.uk |
#Philanderer, IF Carlsberg come back with a 3rd bid at 1300, although an improvement it is hardly a significant one if the BOD believe 1250 was well short..See what happens next week, our options will be to sell into it then sit back and watch, if the bid falls over come back in again much lower for the win.. :o)Be a shame to lose BVIC from the PF, this year I have already let go of SMDS after their MNDI/IP bid was accepted.. |
Making the case to keep Britvic British is tricky as there is no overwhelming national interest at stake
Goldman Sachs International, Britvic's biggest investor with a 8.29 per cent stake, will have a significant say. Britain's long funds are way down the list of owners. M&G, with a substantial 4.7 per cent holding, is in sixth place.
(Daily Mail) |
Interesting the board did not consider consulting their shareholders. The recent Sp shows leakage of info to insiders as is usual on LSE. Whatever happens good to see outside confirmation of BVIC’s value credentials. |
Like justice's call , I reckon 1300p will do it. |
MnA can present problems for existing income seeking shareholders, potentially opening them up to USD dividends and WHT at source, as well as FX translations on income that are often unfavourable..
We are but passengers, but do have the option to step out if any revised offer is favourable and there are always other opportunities to take up or positions to double down on.. ;o) |
Carlsberg said it was considering its position following the rejection and will make a further announcement.
"The proposal represents a compelling opportunity for Britvic shareholders to realise their investment in full in cash at an attractive valuation," Carlsberg added.
Looking forward, Britvic said it would continue to consider any further proposal, but that the board remained "confident" in the current and future prospects of the company.
Citi analyst Simon Hales questioned the logic behind Carlsberg's move.
"The overall strategic rationale of the transaction does not look compelling in our view," Hales said.
He suggested the bid would be dilutive to sales growth and increase debt, prompting Carlsberg to stop its share buyback.
ii.co.uk |
It's probable that a revised offer of 1300p will be made and accepted. IMO. Given the balance sheet surprised a bid came in. AG BARR and Nichols both have net cash. |
I'm not happy with my holdings in shares like this being bought out. I'd prefer to hold for as long as possible, ideally until I croak. Reliable dividends and capital growth. Buyers must think there's more potential in the business, so why give that up? |
Richard Hunter at Interactive Investor said: "While there is no guarantee that any takeover will happen, the news is the latest confirmation that there are many overseas companies running the slide rule over UK PLC
"On the one hand, it recognises that there are many well-run businesses who are trading at a discount to their true value and are therefore attractive bid targets.
"On the other hand, it also reduces the number of companies listed which is a real current concern for policymakers and which has yet to be addressed.”
proactiveinvestors.co.uk |
Interesting development, see if they come back with a 3rd offer... :o) |
 July 19th deadline for Carlsberg 5pm
Alliance News
In London, shares in Britvic jumped 15% after the soft drinks maker, behind brands such as Robinsons squash and R White's lemonade, said it rebuffed a takeover approach from brewer Carlsberg Group.
Noting "press speculation" Britvic said it received an unsolicited takeover proposal from Carlsberg earlier this month, at an offer price of 1,250 per share. That would give the FTSE 250 listing an equity value of GBP3.09 billion. It followed a proposal of 1,200p per share, which valued Britvic at GBP2.96 billion.
"The board together with its advisers carefully considered the second proposal, and concluded that it significantly undervalues Britvic, and its current and future prospects," Britvic said.
"The board remains confident in the current and future prospects of Britvic. It recognises its fiduciary duties and will consider any further proposal on its merits."
The clock for Carlsberg is now ticking, and it has a 'put up or shut up' deadline of the close of play on July 19.
Carlsberg said: "Carlsberg believes that the proposal represents a compelling opportunity for Britvic shareholders to realise their investment in full in cash at an attractive valuation.
Carlsberg believes that the potential transaction would enable it to capture appealing long-term growth opportunities from Britvic's comprehensive portfolio of leading brands in an attractive segment of the beverage market where Carlsberg already has a strong track record." |
Article in the FT this morning. I don't like the risk/reward from here. |
2nd offer 1250 rejected |
2nd offer 1250 rejected |
2nd offer 1250 rejected |
No longer vague rumours with two offers rejected from Carlsberg. 1200 the first I see. |
That would be just my luck, having sold Bvic and kept Tate. |
The Times , Business reporter
Dominic Walsh @walshdominic
1h
Vague rumours of bid interest in Britvic. Over 1.4 million shares traded today, almost 4x the average and the stock was up more than 6% at one point, before closing up 4.7%. Or maybe it's the arrival of summer! |
Investors Chronicle
Britvic shares have plenty of fizz |
xd thursday for the 9.5p dividend |
Jefferies raises Britvic price target to 1,000 (900) pence - 'hold' |
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