Hastings Share Discussion Threads

[fredfishcake] 28/10/2020 16:57

Just got the following from Charles Stanley:

Hastings Group Holdings Plc shares are expected to be suspended from trading with effect from the close of market on 13 November 2020. They will then subsequently be cancelled from listing on 17 November.

The cash consideration is expected to be paid on or around 30 November at which point your account will be updated accordingly.

[pj84] 19/10/2020 22:05

From below it appears anytime from now until 30 April 21 could be extended if both parties agree. They expect it to be completed by late 2020. That's a long way of saying your guess is as good as mine.

"Event Expected time/date
Latest time for lodging Forms
of Proxy for:
Court Meeting (PINK form) 11.00 a.m. on 18 September 2020(1)
General Meeting (WHITE form) 11.15 a.m. on 18 September 2020(1)
Latest time to request to attend 6.30 p.m. on 18 September 2020(2)
the Meetings by way of telephone
Voting Record Time 6.30 p.m. on 18 September 2020(3)
Court Meeting 11.00 a.m. on 22 September 2020
General Meeting 11.15 a.m. on 22 September 2020(4)
The following dates are indicative only and subject to change;
please see note (4) below
Court Hearing As soon as reasonably practicable
after Bidco confirms the satisfaction
or waiver of Conditions (b)
to (e) set out in Part A of
Part III (Conditions to and
further terms of the Offer and
the Scheme) of the Scheme Document
("D")(5)
Last day of dealings in, and D(5)
for registration of transfers
of, and disablement in CREST
of, Hastings Shares
Suspension of listing and dealings 6.00 p.m. on D(5)
in Hastings Shares
Scheme Record Time 6.00 p.m. on D(5)
Effective Date of the Scheme D + 1 Business Day(5)
Cancellation of listing of Hastings By no later than 8.00 a.m. on
Shares D + 2 Business Days(5)
Latest date for dispatch of Within 14 days of the Effective
cheques/settlement through CREST Date
for the Consideration due under
the Scheme
Latest date by which Scheme 30 April 2021(6)
must be implemented

Notes:

(1) The PINK Form of Proxy for the Court Meeting must be received by 11.00 a.m. on 18 September 2020 (or, if the Court Meeting is adjourned, 48 hours (excluding non-working days) before the adjourned Court Meeting) in order to be valid. The WHITE Form of Proxy must be received no later than 11.15 a.m. (London time) on 18 September 2020 (or, if the General Meeting is adjourned, 48 hours (excluding non-working days) before the time fixed for the adjourned Meeting) in order to be valid.

(2) If either the Court Meeting or the General Meeting is adjourned, the latest time to request to attend the relevant adjourned Meeting by telephone will be 6.30 p.m. on the date which is two days (excluding non-working days) before the date set for such adjourned Meeting.

(3) If either the Court Meeting or the General Meeting is adjourned, the Voting Record Time for the relevant adjourned Meeting will be 6.30 p.m. on the date which is two days (excluding non-working days) before the date set for such adjourned Meeting.

(4) To commence at 11.15 a.m. or, as soon thereafter as the Court Meeting shall have concluded or adjourned.

(5) These times and dates are indicative only and will depend on, among other things, the dates upon which (i) the Conditions are satisfied or (where applicable) waived; (ii) the Court sanctions the Scheme; and (iii) the Court Order sanctioning the Scheme is delivered to the Registrar of Companies. Hastings will give notice of these dates and times, when known, by issuing an announcement through a Regulatory Information Service, with such announcement being made available on Hastings' website at www.hastingsplc.com. Any further updates or changes to these times will be notified in the same way.

(6) The process is expected to be completed by late 2020 but the parties have agreed that the latest date by which the Scheme must be implemented shall be 30 April 2021. The date may be extended by agreement between Hastings and Bidco with the prior consent of the Panel and (if required) the approval of the Court.

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[fredfishcake] 19/10/2020 09:15

Anyone know what sort of date we're looking at for getting the cash from this takeover?

[scoble2] 05/8/2020 08:34

Dividend is declared : -£ 2.50 + 4.50p

[r9505571] 05/8/2020 07:36

Happy with 20% premium. No insider trading. It was reported in the Times that the take over price would be higher!

[emptyend] 05/8/2020 06:42

Seems to have been a whiff of insider trading here in recent days, with a swift 25% rise......?

[scepticalinvestor] 05/8/2020 06:13

250p? a bit low surely?!

[r9505571] 30/7/2020 08:15

Aiming for a 10% slice of the pie here

[globalalpha] 29/7/2020 22:23

£2.2 (standard 30% premium to undisturbed) to £2.4 (Rand's original in-price)

[rounder2] 29/7/2020 16:02

£2.20-£2.30 max

[scoble2] 29/7/2020 15:34

Minimum £2.50p takeover offer.

[kickingking] 07/4/2020 08:21

Short closed at 179p.

[kickingking] 01/4/2020 22:53

For the very reasons mentioned, I can't see why this is back at January highs. Today I have opened a short at 186p with a stop loss at 200p.

[wba1] 31/3/2020 08:32

There will be some increased credit risk from instalment defaults (including the risk exposure on such policies which have not yet been voided) but it will be a minor factor compared with the reduction in claims. There are some other negative factors. We can expect to see an increase in fraud across the industry (but insurers are much better set up to detect cases than a few years ago) and there may also be some revenue loss as people delay insurance renewals which are due during lockdown.

[dandanactionman] 30/3/2020 23:21

All IMHO DYORI assume that as a direct insurer Hastings carry the credit risk of people defaulting on their monthly payments.If this crises lasts an extended period do you see a loss of revenue due to people defaulting on monthly payments.

[wba1] 30/3/2020 21:29

I am conflicted about whether Hastings is an opportunity. On the one hand, Hastings management are a bunch of salesmen who do not understand risk pricing (please do not say Van der Meer does because he came from MoneySupermarket. Pricing for a broker - which is what MoneySupermarket is - is entirely different to risk pricing. I should know as an ex Underwriting director). But on the other hand, the last set of Hastings results were so poor (including the outlook which, to me, suggested a further circa 4% deterioration in motor loss ratio in the 2020 accident year) that the positive impact of reduced claims due to less driving will be disproportionately beneficial. If you are Sabre and have a healthy COR any reduction in claims, whilst welcome, will have less effect on the bottom line (as a %) than if your COR is poor, like Hastings.

My guess is that the 2020 COR (ex prior year movement) will be circa 10% better than it would have been (based on claims halving for 3 months). Allow for the 4% deterioration previously mentioned (due to previous lack of pricing discipline) and the net benefit will be 6% (or roughly £50m more underwriting profit than in 2019). So forward p/e may be nearer 10. The problem is that the salesmen running Hastings may see this as a trigger to price more aggressively to get volume and while that will not have any material effect on 2020 results it will hit 2021 and completely screw 2022.

Based on all this I am looking for an entry at 150 with a view to trading rather than holding. I think there is an opportunity, but I would not want to be holding Hastings for the long term.

[cwa1] 22/3/2020 12:25

TBH I had wondered exactly the same thing myself on Friday. As a result I decided to duck out and increase the cash pile for now. Actually managed to make a small turn on it too, an unusual feature these days! You can be fairly sure this will be the only company in the world that attracts a decent bid now that I have just sold out!

[eastbourne1982] 22/3/2020 11:14

Why has this held up so well ?

The share price is currently at pre market crash prices when most others in the sector are down 40 - 60%.

Very odd, was this going to get taken over or something ?? Seems very fishy.

[cwa1] 17/1/2020 07:48

Ho hum, not an ideal start to the day, I suppose one needs to take solace from the fact it wasn't catastrophic(tho' no doubt the market will react as if it was :-( )

[dendria] 17/1/2020 07:37

Not the best of TUs: 'Taking in to account the operating performance in 2019, the Board expects the 2019 total dividend to be lower than 2018.'

[masurenguy] 04/10/2019 12:01

Peel Hunt issued a new Add recommendation today with a target price of 220p.

[cwa1] 29/8/2019 10:55

Decided to have a little nibble at 178'ish, hopefully not TOO premature. We'll see!

[paleje] 09/8/2019 08:26

Tempus in today's Times rates them a Buy

......Hastings has 2.8 million customer policies and makes 90 per cent of its money in the car insurance market, with the rest from bikes, vans and home cover.

Hastings has a key advantage over some of its competitors — its focus over the years on technology, allowing it to play successfully in the price comparison market. Last year it went through a major tech overhaul that has enabled it retain more customers and win new business.

Toby van der Meer, 42, took over as Hastings’ chief executive in March last year from Gary Hoffman, 58. A lower profile figure than Mr Hoffman, Mr Van der Meer has long experience in technology and pricing movements, having previously been a managing director at moneysupermarket.com.

Those areas are key to most insurers’ future success, and many of Hastings’ larger competitors are rushing to catch up with its know-how.
ADVICE Buy
WHY The company has been buffeted but its model is smart and it has been oversold.