Brixton Share Discussion Threads

[scburbs] 24/5/2009 09:06

Thanks Velvetide. So that's two bidders, both with significant financial firepower, identified already and they only announced on Friday.

Its going to be a busy few weeks for the board and it is important that they keep their focus on further disposals in order to meet the 30 June covenant tests independently.

[crosswire] 24/5/2009 08:12

The private equity group Blackstone has approached Brixton, the biggest owner of warehouses in Britain, about a possible takeover as the collapse in prices begins to stir buyers' interest in the commercial property market.


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Let the bidding war begin, & let the share price rise!!!

[topinfo] 24/5/2009 00:45

DW...I think there will be a stampede of people climbing over you to buy your shares on Tuesday at 67p (your 5p increase)...But if thats what you want???

[topinfo] 24/5/2009 00:44

DaidWilkin....5p...why on earth would you settle for 5p more??? LOLL...Have you seen what this co is worth?

[the mystic meg] 23/5/2009 15:42

davidwilkin, hope this helps

[davidwilkin] 23/5/2009 15:36

your optomistic topinfo, i'll settle for another 5p on Tuesday and then i'm out.

[topinfo] 23/5/2009 14:42

Well by all the news from credible financial papers (not tabloids) it looks like NAV still well over £2.50p a share, price targets between £1.00 and £2.00 and any bid will have to be at least another 100% higher than closing share price on Friday. In short its game on, and watch this thing motor Tuesday. Dont you just feel sorry for the shorters that failed to get out on Friday...NOT.!!

[crosswire] 23/5/2009 06:44

There are believed to be at least three suitors, with private equity buyers joining Segro in the battle for the company. Brixton shares soared by almost 25pc to 61¾p with Segro up 1¼ to 26¼p

[crosswire] 23/5/2009 06:40

Analyst Consensus 12 Month Target Price

The 5 analysts offering 12 month price targets for Brixton (BXTN:LSE) have a median target of 146.00, with a high estimate of 200.00 and a low estimate of 80.44. The median estimate represents a 193.47% increase from the last price of 49.75.

[crosswire] 23/5/2009 06:39

Segro bids for rival property group Brixton

By Daniel Thomas, Property Correspondent

Last updated: May 23 2009 03:00

Segro has made a takeover bid for rival industrial property group Brixton in the first sign of consolidation in the downtrodden real estate sector since the market slump began in 2007.

After a decades-long rivalry between the two companies, which own and manage very similar property portfolios, Segro has emerged as an unlikely potential saviour for Brixton, which is facing potential covenant default of certain bank facilities and bonds this summer.

While pricing has not been disclosed, analysts yesterday said that it may not be much higher than the existing market capitalisation of around £165m. Shares in Brixton leapt on the news of the bid, closing the day up 12p, or 24 per cent, at 61.75p.

Brixton's shares have been falling steadily since a peak of almost £6 at the beginning of 2007. Any deal at current share price levels would be a significant discount to stated net asset value per share of £2.90. Brixton's portfolio of warehouses and offices was valued at £1.8bn at the end of 2008. The combined group would have investment property assets totalling £5.5bn and net rents of £320m, according to Fitch.

Segro, formerly called Slough Estates, and Brixton have long been fierce rivals, often challenging for supremacy in the same offices and warehouse markets along the M25 motorway, and specifically around Heathrow airport.

Brixton said yesterday Segro was one of "a small number of parties" interested in talks. No other names were confirmed, but it is thought that the group has been talking with private equity firms about a potential sale or convertible bond issue.

It said that it continued to make progress with options to provide additional financial flexibility, including a restructuring of the debt arrangements, a potential equity raising and further asset disposals.

Segro yesterday confirmed that it had made a preliminary approach, adding that the offer it envisaged was in the form of its shares. It emphasised that there can be no certainty that an offer will be forthcoming.

After raising £500m in a rights issue earlier this year, Segro has bolstered its balance sheet, giving it more than £1bn to play with in cash and undrawn facilities.

However, while it yesterday entertained using cash if necessary, it may not want to use much on buying Brixton, which is carrying a heavy weight of debt that will need to be paid down next year. There is around £540m of bonds and facilities set to mature by the end of 2010, with £103m undrawn.

Brixton's immediate problems - the testing of loan-to-value convents on bonds and banking facilities - should be less of an issue for Segro, given the lower gearing expected should the groups combine. Brixton also said that a gearing covenant test, first planned for December, will now occur in August.

A major barrier to a takeover attempt by Segro was removed this year with the departure of Tim Wheeler, Brixton's long serving chief executive, in favour of Peter Dawson. UBS and JPMorgan Cazenove are advising Segro. Citi and Nomura are advising Brixton.

The underlying assets held by Brixton are seen as good, although Segro may be concerned about the vacancy rate of around 20 per cent and the high level of Brixton's rents over market rate.

[topinfo] 22/5/2009 18:15

Game on here chaps.!!!

[warmsun] 22/5/2009 17:06

What is the trade of 455k ? Is that a sell?

[topinfo] 22/5/2009 17:05

Crosswire...At least, many will have missed this today and will want to jump in feet first. Its a no brainer as they say.

[crosswire] 22/5/2009 17:03

Gap up to 70p Tuesday morning............!!

[news trader] 22/5/2009 16:48

the 250k at 4.30 looked more like a sell?

[topinfo] 22/5/2009 16:37

I cant see that we will get an update Tuesday as most will be enjoying the 3 day break but its likely that there will be alot of talk over the weekend news/press on how much any bidder will be likely to pay and who may be bidding, that itself will keep the momentum going here.

[topinfo] 22/5/2009 16:36

After calculating NAV figues against debt/mkt cap and discount due to state of market I get a takeout figure of no less than £1.15p a share and that represents a premium of just over 110% based on close share price prior to announcement and thats cheap. Any other calculations welcome.
I would say we will see 80p Tuesday when the traders who werent at their desks today also buy in to reap what could be big rewards if we get a bidding war which looks likely with multiple bidders. Clearly value has been seen here by the companies bidding. Once this company is bought out and turned around there will be massive gains to be had by the new owners.
A trader today suggested an Property Investment vehicle co-owned by Roman Abramovich was one of the interested parties, but who knows and who cares as long as they pay much more than current share price which is clearly going to happen here.

[sportbilly1976] 22/5/2009 16:31

250k at 61.5p.....

someone getting in before update on Tuesday?

[scburbs] 22/5/2009 16:18

Difficult to find many deals that make more commercial sense. Lots of synergies in this deal for Segro.