The Local Shopping Reit Share Discussion Threads

[sleepy] 18/6/2019 17:33

Will it still qualify as a REIT if it has a majority shareholder?

[gfrae] 18/6/2019 17:27

Probably not, but presumably you could use the tax advantages, which might otherwise be expensive to acquire.

[tiltonboy] 18/6/2019 16:59

Can you use tax losses from a REIT!

[kooba] 18/6/2019 14:33

Think he is the biggest THAL shareholder is the?

[hindsight] 18/6/2019 14:31

Doesnt look as if he is going to get a decent drink out of it

Presume you mean Thal shareholders hillofwad as Im sure Thal directors will still be paid. But suppose the Thal shareholders have gained from having the preference share fiasco removed.

[kooba] 18/6/2019 14:26

Yes think the deterioration in the value (pre bid) and lack of dialogue from board were not part of the plan.However if he can find the right reverse transaction for the remaining shell could bridge the valuation gap quite easily.Just not sure what might be on the cards but a very deliverable listed vehicle with REIT status and massive tax losses might be highly attractive to the right company seeking a listing.DS is a shrewd fellow and maybe there is more of an angle to this as a vehicle than meets the eye?

[stemis] 18/6/2019 14:14

Oops. Yes. I read it the wrong way round.

[hillofwad] 18/6/2019 13:50

Kooba

You have to question DS's whole involvement in the first place Desperately trying to mitigate his stuation effectively extracting any value over and above 31.5 p .His purchase was at 36p sometime ago

Doesn't look as if he is going to get a decent drink out of it

[gfrae] 18/6/2019 13:38

I looked at that sentence for a long time too, but I took it to mean the opposite, ie THAL must own in excess of 50% after the buy back, which means that more than 66% of shares must be tendered, not less.

[kooba] 18/6/2019 13:32

A minimum acceptance condition ..not a maximum acceptance?Does this mean that 2/3s of non THAL shareholders need to accept nav cash distribution so that THAL controls over 50%.Judging from voting and this board don't think they will have a problem achieving that acceptance level.Be interesting if THAL enlarge on plans for listing as an investment vehicle..cash shell. The right deal could see decent premium to remaining cash.

[stemis] 18/6/2019 12:58

It's definitely positive news but I wonder if this particular proposal will actually take place.

"The buy-back tender offer will be subject to a minimum acceptance condition such that following the buy-back and cancellation of tendered LSR shares, Thalassa would hold more than fifty per cent of the voting rights in LSR. "

With THAL currently holding 25.5% of the shares, it means no more than 49 of every 74.5 shares in other hands can accept the buyback without it failing. That's under 66% of remaining shareholders.

[gbjbaanb] 18/6/2019 10:25

So basically DS buys the company for cash instead of thal shares. That'll do me, I don't care what happens with it once I've gotten out. I doubt the nav will be any more than 31.5p anyway, or realisable at more than that.

[hillofwad] 18/6/2019 08:39

Written in the stars that the person who was always going to time the exit well was Whateley with DS being the fall guy

DS now looking to be paying expensively for a shell

[scburbs] 18/6/2019 08:08

Great news. Finally a sensible exit in sight, albeit perhaps c.3p per share lower than it should be been.

Good work to agree something without going to court for just and reasonable liquidation which was far from certain to be approved.

[kooba] 18/6/2019 07:31

Must read the board!A way forward it seems.Still keeping us guessing what the return will be but capped at 31.5p.Thalassa will end up controlling the balance of the business as an investment vehicle and presume the board steps down ..so the company keeps listing? Will need clarity on THAL plans to consider staying on board.Shame the board didn't engage ages ago as it might have saved much shareholder value.Let's see what's left in a couple of days.

[kooba] 17/6/2019 11:24

I note the interims to end March came out end of May last year..nothing so far this year...I believe they have until the end of June to publish so hopefully will give some clarity.In the circumstances this Radio silence is wrong and it appears some shareholders are heading for the door as a result of the uncertainty.

[kooba] 17/6/2019 11:16

DS taking all the blame I see ..LSR management refused to engage and seek approval of largest shareholder with ability to block distribution and tried to force through ..not sure they look that clever either.Shareholders suffering for inflated egos it seems.Meantime I reiterate a Thalassa bid for me was the best way of sorting this..now in limbo again and LSR gone quiet after getting (at some expense) approval for court backed liquidation as justification for not recommending bid...why are they not furthering this if as they claimed they do not need Thalassa approval. If they do need Thalassa approval or Thalassa can still block them they have misled shareholders.Need an update on valuation and distribution urgently.

[hillofwad] 17/6/2019 09:39

DS is going to come out the other side of this with a loss ignoring the opportunity cost of tieing up the capital he spent some years back paying Grahame Whateley.

All he is succeeding in doing is reducing shareholder value


BODS are probably just shipping the last of the properties out of the door and leaving it as a company in a suitcase.
Pyrhic victory with the professionals reaping the awards as usual

[topvest] 14/6/2019 21:17

Unfortunately, these battles never end well. Actually liquidations don't generally end that well either. I sold at just over 29p at the first announcement of this debacle. I should have sold much earlier. There is no way shareholders will now get anywhere close to 30p back in my view. The costs are likely to be eye-watering. At least DS hasn't won is the only silver lining!

[hindsight] 14/6/2019 20:26

The key bit "all things being equal". Personally I dont think they are, and very pleased I didnt have to find out the hard way. Its crystal clear who has cost us sub 33p and Thal shareholders even more.

[gbjbaanb] 14/6/2019 19:40

They tried to liquidate the property slowly so as to not dump them for nothing, unfortunately market forces and the death of the high street came knocking first. So we can finish but I don't think there was much that could be done. At least they had the sense to sell it all off and liquidate.

Could have been better, but we've been very unlucky. It happens.

[kooba] 14/6/2019 13:44

Agree distribution north of 30p but south of previous low end guidance of 33p.If Thalassa had succeeded would have been able to liquidate at about 35p all things being equal .. but no let's back an incompetent management that has taken 6 years to wind this up and still hasn't.'authorised to take all such actions as they may consider necessary or appropriate to liquidate the Company'...hows that going exactly??... where's the update on court action they were so confident of pushing through??

[stemis] 14/6/2019 13:30

LSR have already disclosed the costs of fighting the bid at 0.5-0.6p/share. Overheads are running at about 1.2p/share per year less any net income on remaining properties and interest receivable so 0.8p/share or so. Would expect 31p if they can get the court case through...

[gbjbaanb] 14/6/2019 13:28

My heart bleeds for the poor boy. I hope he gets taxed massively on the capital gains he gets when LSR is finally wound up.

[hindsight] 14/6/2019 13:26

Be fair , as Thal own 25% of Lsr Im sure hes very upset to have created this ongoing value distruction for Thal shareholders on top of the probably larger legal costs on thier own side. Anyway time for me to wake up and have my cornflakes