Lees Foods Share Discussion Threads

[battlebus2] 22/5/2012 20:46

Getting more and more dubious.Was to speak to the case officer at the takeover panel in the morning regarding Lees but it looks a little late now.

[davidosh] 22/5/2012 19:47

Recount needed ?

It does look very strange and difficult to explain as a mistake especially as the numbers voting against in the court meeting were actually higher !.

[isis] 22/5/2012 17:58

That was very close if passed - also very costly to shareholders I'm afraid.

[strollingmolby] 22/5/2012 17:48

Results of the adjourned meeting are out. Am I reading it correctly that the Resolutions have been passed*?

The Ordinary Resolution required 50% or more of the Independent shareholders to vote in favour and the Special Resolution required 75% of Shareholders - the results were 69% and 75.4% in favour respectively.


* according to p.24 of the Scheme Document:

[davidosh] 17/5/2012 23:16

isis...I am afraid under the terms of the scheme of arrangement they need just 75% and then it is theirs and all holders have to release their holding to the new vehicle. A type of compulsory purchase scheme if you like. That is why they are doing it this way...they do not want any of the minority holders to remain here.

There are a number of lingering questions though. Minority shareholders may still ask why a replacement independent director was not appointed when the only independent director and ex chairman fell ill and then died four months before this deal was put to shareholders ?

If a truly independent director were involved in assessing this deal for all of the minority holders I rather think much more appraisal of whether the MBO offer was a fair one and encouragement of third parties to make a counter bid would have been seen. But why would an intending MBO team want to appoint someone that would achieve a higher and fairer price for investors and shareholders ??

There is a very good discussion thread on TMF on this subject btw...

[isis] 17/5/2012 12:59

You can bet your Aunties Bakewells it will probably be sold for double within 2 years time.

Mind you they do need 90% to make the offer unconditional - so you might still be able to hold but your holding would be difficult to sell unless it was back to them.

[isis] 17/5/2012 12:55

Fortunately most Companies are not in a position to take advantage in the same way in anycase.
The Directors here have large holdings and it looks like a separate vehicle which is controlled by them to take them out.

I've seen other Companies do this before but they have usually offered a better premium.

[battlebus2] 17/5/2012 12:33

Been party to similar comments from directors of a couple of poor shareprice performance companies at AGM's, it's very reassuring for shareholders.. Registered my disgust with the takeover panel by the way.

[davidosh] 17/5/2012 12:16

A refreshing report of a company AGM yesterday and complete contrast to LEE and the Board attitude here...

...They have no intention of delisting and Mr Leek (chairman) said he was totally against such shennanigans. Nobody on the Board or external shareholders is interested in adopting such a route and Mr Leek said he wouldn't stay as Chairman should anything like that start to be seriously considered. To quote him "it's not fair to shareholders".

Mmmm

[davidosh] 16/5/2012 23:12

rubstic...sorry I do not bet on the horses other than the National each year ! Had a second and third this year so rather pleased with that outcome and only a nose got in the way....As for LEEs, Best result maybe but not at this price rubstic. To be frank..You should be BUYING into companies making profits of over a million with nearly half the market cap in the bank so an enterprise value of three... not SELLING them !!

You only seem to have ever posted on LEEs BB and only recently which makes me slightly concerned that investing is probably not your strong point !! Or maybe you just specialise in lowball MBO situations !!

Picking winning horses consistantly and promoting or defending lowball opportunistic MBOs and trying to convince serious investors likewise is a mugs game IMHO.

There is only one 'd' not a double btw !

[rubstic] 16/5/2012 21:25

daviddosh, hope you took my tip from earlier. By that I mean the horse, but my tip that the buy out deal is the best result for all investors remains in place!

[isis] 16/5/2012 18:35

I have at least two Companies that are very undervalued and would be very unhappy with this type of action so we do all share a responsibility to see our investments are not taken advantage of.
This is a clear case of opportunism at the expense of others.

[battlebus2] 16/5/2012 18:32

I know David so i'll be glad to help got that address. Even tempted to buy a share to get a vote at the AGM or is that too late. Makes my blood boil underhand underpriced imv.

[davidosh] 16/5/2012 18:18

rubstic...If the MBO team are intent on taking it private then just pay a fair price is all we ask...that is a better scenario is it not ?

battlebus...Even if you are not a shareholder you can still join in and help here. This is an action that could happen anywhere in a poorly regulated market with dominant director(s) and fractious smaller nominee holdings. We are standing up for our rights as shareholders here and to show that the system and regulations need looking at and changing. You can write to the Takeover Panel and complain if you agree with us for starters.

[isis] 16/5/2012 18:12

Not paying a dividend is pure greed and nothing else.

I know the Scots have a reputation for being mean but.......................

[rubstic] 16/5/2012 18:06

Fair point about achieving best price for my investment, can't argue with that, however if the buy out fails as you seem confident it will, what would happen next?
Personally I am not sure if that scenario would get me a better return in the long run?

[battlebus2] 16/5/2012 18:06

David don't hold here but well done for your effort to make these directors accountable to their shareholders. It's about time someone stood up for our rights. The more press coverage you can get the better i'd be contacting a few more papers or even a radio station and link it with a protest outside the head office cameraman it toe and protest shareholder letter in hand.Lots you can do given the support of other shareholders.Keep up the great work.

[davidosh] 16/5/2012 17:44

No never been to Coatbridge but I enjoy all forms of sport and fairly knowledgeable in sports quiz situations so could see the link. Still baffled that you would not want a higher exit price? I do accept that

You may have invested low but others may not !

You may not be a long term investor !

But...

You should still want the best price that can be achieved for your current investment and to protect your other and future investments.

Incidentally...

You are not reading about me in the Scottish Press you are reading about your company and shareholders reactions to what the directors have announced. I am not alone as there are tens of shareholders feeling the same way

www.freesharedata.com/lees-foods

[isis] 16/5/2012 17:40

rubstic - Do you know of any reason why the Directors would avoid speaking to shareholders or the press for that matter?

Also do you not think that holders should be entitled to a dividend from last years profits??

[rubstic] 16/5/2012 17:16

Daviddosh-Yes Rubstic was my first real investment joy, as a punter I hasten to add! Actually got 50/1-Seems a long time ago now!
Always happy to share any tips I get to like minded individuals! Not sure you would take any notice of them though?! I quite fancy Kris Cross in the 7.30pm at my local track tonight if of any interest- perhaps each way!
Thankfully I am from nowhere near Coatbridge- have you ever been there?!
Looking forward to the end of this Lees saga and re-investing my pay out, if it happens of course......... Fed up reading about you in the Scottish press!

[jamesf21] 16/5/2012 16:37

Herald View

CLIVE Miquel's decision to bar The Herald from yesterday's meeting of shareholders in Lees Foods was as baffling as it was lamentable.