Brixton Share Discussion Threads

[sportbilly1976] 22/5/2009 09:59

Current level 2:

[explorer88] 22/5/2009 09:58

Yes, imo, winning bid will value BXTN between 100p-120p depending on whether winning bid is cash, cash and shares, or just shares (imo, third option is unlikely)

[maak128] 22/5/2009 09:50

l2 looking stronger.......

bid of 100-120p has been quoted

[wadget] 22/5/2009 09:50

One suitor is SGRO !

[explorer88] 22/5/2009 09:48

one of the suitors has been flushed out ...

[warmsun] 22/5/2009 09:41

Moving up again :-)

[sportbilly1976] 22/5/2009 09:36

morning all...


nice news :-)

anyone with ideas as to possible suitors & also a realistic first bid price?

[warmsun] 22/5/2009 09:34

Any thoughts on why such a muted response? Is it possible that someone is holding the share price down?

[crosswire] 22/5/2009 08:38

Brixton receives approaches

Fri 22 May 2009

BXTN - Brixton

Latest Prices
Name Price %
Brixton 55.75p +12.06%

FTSE All-Share 2,225 +0.29%
FTSE Small Cap 2,258 -0.03%
Real Estate 1,547 +1.11%

LONDON (SHARECAST) - Property firm Brixton said it is in discussions with 'a small number of parties' after receiving approaches about a possible offer for the firm.

The company, which specialises in industrial, warehouse and office buildings in the South East of England, said it currently remains focused on mitigating the risk of any covenant breach.

Last week Brixton, which has seen its cash position deteriorate sharply during the property slump, said it was considering an equity raising and sold four industrial units to AEW Europe for £70.25m.

[cockneyrebel] 22/5/2009 08:37

yes, have to say private eq does look more likely than SHB and GPORT bidding - BXTN wharehouse type property doesn't look a fit with the latter on the face of it.

CR

[crosswire] 22/5/2009 08:35

From Times Online

May 22, 2009

Brixton Estates admits to a takeover approachCarol Lewis

Brixton Estates, the industrial property group, today announced that it is in talks with "a small number of parties" about a possible takeover.

Earlier this month, rumours arose that the company would have to turn to private equity for a solution to its debt problems.

Brixton was reported to have held talks with private equity firms about a convertible bond issue as part of a wider rescue package, which could include an equity offer and an extension of debt maturities.

JP Morgan estimated that Brixton needed to raise £300 million by cutting its dividend and selling assets to return its balance sheet to health. Brixton began the process by announcing that it was selling four industrial units to AEW Europe's European Property Investors Special Opportunities Fund (EPISO) for £70.25 million a fortnight ago.


However, without further remedial action, Brixton is likely to breach an asset cover loan covenant when tested next month, as well as its gearing limit bond covenants in December. In an announcement this morning the company said that the board remained focused on "mitigating the risk of any covenant breach."

It said: "The board continues to progress its options to provide the group with additional financial flexibility. These options include restructuring of the company's debt arrangements, a potential equity raising and further asset disposals."

Brixton, which owns a lot of industrial property around London's Heathrow Airport, said the takeover discussions were at a "very early stage" and that there could be no certainty an offer would result.

Unlike the majority of property companies, including British Land, Land Securities and Liberty International, Brixton has not sold shares to raise funds preferring instead to sell assets.

Liberty International announced a rights issue this morning to raise proceeds of £620 million after months of speculation about its fundraising plans.

[warmsun] 22/5/2009 08:32

explorer,

Thanks for your take on the matter, I truly hope you are right!

Am watching very closely and aim to buy more over the course of the next hour or so.

Thanks again

[explorer88] 22/5/2009 08:25

as i've mentioned over the last three weeks (posts 406, 437, 479, 486), now confirmed in this morning's RNS, there are number of parties interested in buying the entire issued share capital of BXTN

i believe that BXTN will now be sold to the highest bidder

warmsun - to answer your question, as i write, the share price is 57p - imo, no not too late:-)

fwiw, based on all info. available (e.g. LAND losing out in bid for property, GPOR, etc., and other research) i think the winning bidder will pay about 105p / share

good luck !

:-)

[scburbs] 22/5/2009 08:20

Private Equity would be my guess. Real Estate Funds like AEW (bought from Brixton), AREA (invested in JV/Funds with CAL) etc.

[cockneyrebel] 22/5/2009 08:19

yep - occurred to me SKYSHIP but they are West London based - but you might be right, so who's the bidders then cos they say there's a number of them?

CR

[sapper2476] 22/5/2009 08:17

Well, i have at 57p.

[warmsun] 22/5/2009 08:16

Am actually wondering if it is still not too late to buy at this morning's price.

Good luck all holders

[lord gnome] 22/5/2009 08:13

Yes - the market response is muted to say the least. Disappointing, but I'm sure things will develop in our favour. Still looking to exit at anywhere between 70 and 80p

Edit: 85p would be very nice Skyship

[skyship] 22/5/2009 08:13

Expecting a bid somewhere around the 85p level for the balance of risk - so, with "a number of parties" being the operative words - BXTN need to be bought this morning.

[scburbs] 22/5/2009 08:08

Very interesting news (although a bit amateurish on the bonds). Surprisingly small rise so far, I thought this would go much higher given NAV is still above £2 and an offer at a 40% discount to NAV would be well over £1.

[warmsun] 22/5/2009 08:01

currently 225k sitting at 60p on L2

[skyship] 22/5/2009 07:58

CR - SHB and GPOR both raised cash for their warchests, but as I'm sure you are aware, their interests are highly specialised - both in sector and location Brixton doesn't fit their bill.