Lees Foods Share Discussion Threads

[davidosh] 20/4/2012 20:01

cfro...I think that would be a good gesture and help support us but you must make your own investing decisions of course.

[cfro] 20/4/2012 18:57

I am reading this board with great interest. Very nearly bought in a few months ago but decided not to as i couldnt work out a clear management strategy here. Now of course we know exactly what their strategy is!!

So, im in full support of davidosh and all the other shareholders who imo have been cheated on with the very low ball bid.

Im actually rethinking a small purchase again in LEE just so i can add my voice but i probably am being a tad cheeky in doing so and would be viewed as 'bandwagon' jumping from the directors point of view im sure.

[davidosh] 20/4/2012 17:01

isis...thanks for the support and comments. It is not necessarily too late to get involved as the base cash offer is £2.30. I think it should be over £3 and I am confident that the vote can be blocked by the huge number of shareholders who are making contact and agree that this is too low. It reminds me of the FDM Group situation about two years ago where the bid was increased twice before shareholders accepted it. Once again that was management trying to do a cheap MBO

[davidosh] 20/4/2012 16:27

Beattie1....so you do not prefer a 100% return over two years or even holding longer term as this company is clearly on the growth and improving profit and dividend trend !

What about an investor who bought a few weeks after you at £2.50 as it got to that price too ? He loses and has held nearly as long

The fact is you saw the purchase as a punt ! I prefer to call all my holdings investments and I like to take a close interest in them and build them over a number of years. LEE is being stolen from me at far too low a price and many other private investors agree, as do external valuers, market commentators and even the advisors. The share price is even higher than £2.30 currently.

If we allow this to happen here then it will move through the Aim small caps like a disease where other boards will see the low valuations as an excuse to jump the market at as low a premium as possible....A 2.7% premuium is LOW is it not ?

Interesting headline today in the Herald...
And so say all of us !

[beattie1] 20/4/2012 16:09

Davidosh - I understand where you are coming from. However, I bought in at £1.50 just over 2 years back so pretty pleased with a 53% premium in that space of time. I can't say that for many of my other punts.

[davidosh] 20/4/2012 12:26

You have to laugh at some of the management comments in this one...



They said: "The management of Lees Foods believe that the proposal to return the company to private ownership is in the best long-term interests of the business. (so two fingers to the shareholders !)

"The company are doing well and this should be seen as a positive move for management and workers." (but not of course for the long standing shareholders!)

Shocking that they think they can get away with it at this price


Coatbridge-based Lees Foods – whose famous advertising slogan from the 1960s is "Lees, Lees, more if you please" – are the parent company of Lees of Scotland and Waverley Bakers.

Indeed, about £3.30 which is £1 more if you please and would be a starting point !

[strollingmolby] 20/4/2012 09:13

SAVE OUR SNOWBALLS!

[stilton] 19/4/2012 13:57

Is it right to assume that for nominee held shares, the holding company will have to contact the beneficial owner to get their vote so that I too can add my disapproval to this situation?

[cwa1] 19/4/2012 13:07

Scheme document posted:-

[cwa1] 16/4/2012 14:34

Great stuff David, delighted to see the votes against column beginning to tick along to a meaningful number. Would be great if we could get the word out to enough people to block this risible offer.

[davidosh] 16/4/2012 14:13

In advance of any shareholder action group being set up I will keep a running total for the private shareholder holdings communicated here...

nitnia....5000
davidosh..16500
CWA1......
mustbefunny..2000
Joe Say...
Biscuitbarrel(iii)...3000
jbarker555...4800
Panosear (TMF) 6000
FokkerJ100 (TMF) 12000
Burgosi (TMF) 2500

Unicorn Aim Vct hold 5.32% and did not give an irrevocable undertaking to accept the offer.

the total issued share capital of the Company is 2,464,751 Ordinary Shares

Alongside communication received via email from four shareholders we are already at 4% of the company. To gain 25% of those eligible to vote we probably need just 12% of the total shareholding. If Unicorn vote against that would be nearly 10% with those already stating their disgust at this paltry offer.

[joe say] 15/4/2012 12:05

Davidosh - maybe but why take the risk ?

after all you will have seen all the postings any share gets when an assumed better nomad/advisor is appointed - the same must surely apply in reverse.

I'll avoid

[davydoo] 15/4/2012 10:53

re Sharesoc that davidosh mentioned earlier.

I was very pleased to join as a full member today, having been an associate for a while. Its worth it just for the quality newsletter, but more importantly for me is that like this situation with Lees, I want to know there is a confident, and crucially, a resourced voice for the private investor.

[davidosh] 13/4/2012 16:13

Joe Say....Difficult to judge every company by its broker or Nomad ! The only comment I would make is that David Cicurel at JDG is exceptionally driven to do good deals and shareholder friendly. He has attended four presentations to investors and most of us who bought into JDG have had an absolute dream of an investment over four years where the share price has multiplied by seven and is still exceptionally good value in my eyes. That has not been the case at LEE but it could have been much better !

[joe say] 13/4/2012 15:13

looking at their (Shore Capital) client list it would appear that JDG and TEF are amongst them - both of which I've held and both of which were on my current radar

Not any more !

[davidosh] 13/4/2012 14:48

Londons Evening Standard has picked up on the story today...



Another AIM departure, and it's a sticky business...

If you have never enjoyed the delights of a teacake or snowball confectionery or a macaroon bar, you have missed out on some of Scotland's culinary delights.

And shortly you will no longer be able to invest in Lees Foods, maker of such wonderful comestibles.

For Lees is one of those sad AIM-listed companies that is taking itself private.

It joined the junior stock market back in 2005 with an admission of shares at 200p each. Its five directors have now bid a princely 230p a share to take it private.

They and their supporters already have 70% of the shares, so the chances of them not making the 75% vote needed for the deal to go through are negligible. But the management buyout - backed by our own Lloyds Bank - does raise some questions.

The offer document is scant on why the offer is being made and why it is good news for minority shareholders. Indeed, it appears to highlight the fact that Lees profits rose to a record £1 million last year. Why sell out now?

Second, since the death of its chairman in February, Lees has had no non-executive directors. So the recommendation of the bid comes from the firm's nominated adviser, Shore Capital. This is the same firm of brokers that brought the company to market seven years ago and has advised it ever since. Surely some conflict of interest there.

[skyracer] 13/4/2012 14:47

Re : Amended form 8 (OPD)

In addition to the above directors, Coven-SA Limited holds 544,085 Lees Shares (22.1% of the issued share capital of Lees), and because it is controlled by the Perch-Nielsen family it is deemed to be acting in concert with Randotte.

Is this not a problem for Randotte ?

[davidosh] 13/4/2012 13:59

Maybe it is just me ! LOL

I suspect other shareholders need to do the same and if we are all given a cold shoulder then I will go public on this and also advise the LSE and Shore the nomads.

This situation is so blatant that I think it will need a full explanation from Shore as to why they have 'recommended' it to shareholders and clearly some have now sold out on that recommendation.

The more shareholders who ring all those listed on the document the better to show that it simply is not acceptable to shareholders.

[masurenguy] 13/4/2012 13:47

davidosh - 13 Apr'12 - 209: I have left seven messages for Clive Miquel and he appears totally disinterested in taking or returning calls. I have tried to get hold of three other directors without success too. Clearly they do not take their role as directors of a publicly listed company at all seriously !

Well David, their actions speak louder than words ! Can't you get the ShareSociety to issue some press releases on this and to call a few sympathetic journalists who might be prepared to give it some air !

Directors can usually rely upon the apathy of small shareholders far too often, when they assume that most will just moan, then accept the fait accompli, sell up and move on !

[davidosh] 13/4/2012 12:52

Joe Say...You did not have to bail so quick ! The share price is not going to collapse and will probably remain at this level for weeks unless of course there is a counter bid.

I am afraid directors can get away with this only if shareholders allow them. If folks think their individual holdings are too small to fight it or just sell on the news then it will happen not just here but at every company where slimy directors see an opportunistic point to take 'our' hard earned investment money away on the cheap thinking nobody will stand in their way.

I do wish long term investors would stand up and be counted. Although you say... 'it irks me that shareholders always seem to pick up the tab for director greed' I am afraid that in a small but measurable way you are aiding and abetting them by selling out at the price as if to say it is acceptable !!

[joe say] 13/4/2012 12:32

davidosh - completely out now thank you

I had a limit order in and tbh whilst I appreciated your offer just felt it was too complicated to handle, and without knowing you (this is the virtual world after all) wondered how I could be sure of payment (which you've now explained)

I do wish you luck with your campaign however as it irks me that shareholders always seem to pick up the tab for director greed - another factor in me bailing so fast as I felt the holding I had was not worth the effort in fighting.

Good luck and hopefully other remaining holders will join you

[davidosh] 13/4/2012 12:06

Joe Say....If you wish to sell now at £2.29 then just say here and I will arrange for my broker to buy them from yours. It is important that shareholders who do not think this is a satisfactory offer actually stay strong so I do not wish your shares to go into the market and taken into the hands of those trying to push this deal through.

Incidentally I do not know if any of you have tried to contact a director since the news broke but I have left seven messages for Clive Miquel and he appears totally disinterested in taking or returning calls. I have tried to get hold of three other directors without success too. Clearly they do not take their role as directors of a publicly listed company at all seriously !

[joe say] 13/4/2012 07:10

blacklist the advisors too - they have a material hand in this and clearly lost future business will hurt more than the one off gain made here