Merlin Entertainments Share Discussion Threads

[topvest] 26/10/2019 12:02

Scheme effective on 4 Nov and cash due on 18 Nov I believe.

[bathcoup] 26/10/2019 07:36

Haven't received the money yet. It's curious that my broker's Corporate Action Notification indicates PAYMENT DATE: 21/10/2019.

[sovsov1357] 23/9/2019 13:23

Does anyone have any idea when we’ll get paid for takeover? My initial reading was not until Q4 at earliest - in which case I think I’ll sell now, considering no divi and the money could be used elsewhere...

[leadersoffice] 01/8/2019 07:02

My mistake. £4.55

[leadersoffice] 30/7/2019 10:41

Moving above the offer price

[topvest] 11/7/2019 18:58

I can't see it happening. The Danish Lego man already has a big stake. There is also compelling logic for a deal with him. Who would go hostile and risk upsetting Lego?

[leadersoffice] 10/7/2019 05:41

Still waiting for that knock out blow.. will we see another bidder? plenty of private equity companies looking for a home for there cash in these uncertain times. Throw the dice plz

[dplewis1] 01/7/2019 21:39

I see Pug never came back to address his 'realistic downside target' of 3 quid.. funny old world ..

[vinceelliott] 30/6/2019 18:34

Message 644 indicates ValueAct got onboard at £5 a share. Only RNS I can find is Feb18, when price was around 320p. Cannot find the RNS taking holding up from 5.4% to 9.3%; anyone remember when?

[curriedquaker] 28/6/2019 21:39

Time to cash out. Bye bye.

[curriedquaker] 28/6/2019 21:39

Time to cash out. Bye bye.

[justiceforthemany] 28/6/2019 17:21

This was being shorted by 3 different institutions. Idiots.

[topvest] 28/6/2019 11:22

Yes, always the chance of another bid. This has been a relatively poor, low conviction, investment for me so should now be able to exit profitably. I will wait for the bid to close. I think it’s a good business but ROCE is not particularly attractive, hence the weakening conviction.

[quepassa] 28/6/2019 11:01

Thanks to leading and leaders for two very interesting replies.

One particular point is that the BIDCO has a very weak platform with a de minimis 14% of votes from which to launch a bid.

That is by no means a safe or a strong starting position . Actually very weak, upon reflection.

So, if another suitor were minded to join the fray, they would not be facing an insurmountable obstacle. Or if other institutional holders collectively joined forces on the basis that the current offer was significantly undervaluing the future prospects of Merlin, they would be in a strong position to attempt to force a higher offer versus the 14% which BidCo already controls..


Haven't perused the full documents but I guess, although recommended, it doesn't contain language that this is the final offer of BidCo.

Maybe with BidCo at just 14%, holders need to reflect very carefully indeed upon the wisdom or otherwise of jumping to accept this bid.

ALL IMO. DYOR.
QP

[leadersoffice] 28/6/2019 09:51

Merlin is a very attractive power brand. I know there's been some knock backs over the last couple of years but we should not under-estimate how attractive Merlin is to similar companies operating elsewhere. Also, private equity companies are awash with cash itching to put it some good. I'm not advocating much of a counter bid but if someone came along and offered somewhere in the region of £5 or just under, i'd say the board would snap there hand off.
There's nothing quite like a bidding war...bring it on

[leading] 28/6/2019 09:41

QP - The answers to your two questions are that I don't know! Sorry that's not very helpful. I agree with you about the sector and am sorry to see it go too.

I bought in March 2018 at £3.49 so I thought that was a good buy in price then. I liked the business model, expansion opportunities and also the move into themed accommodation. This latter point did suggest increased capital requirements and the activist investor has a point there.

I am happy to be taken out at this price, but will sit on my hands and see if another bid turns up. The price is sitting at a discount to the offer, so the market is not particularly expecting a counter bid, but if one turns up that's when it gets really interesting.

There is a lot of money out there looking for a sensible home, so I don't rule out a counter offer, even though it has been recommended. DYOR etc.

[quepassa] 28/6/2019 09:10

yes, you are right. but do you think the current offer does not represent good value? It is after all recommended which means it has the support of the Board and the Board think it's good value, hence their recommendation.

I did once get involved in a recommended offer (Quintain) where we ultimately forced a higher price because we felt the original bid didn't represent good value for shareholders, despite the Board's recommendation. Subsequently the acquirer was forced to cough up 10% more because he couldn't otherwise get the 75% necessary to go unconditional at the original offer price.

So, yes, it can happen.

Just to clarify please.

1.Do you think this is good value for shareholders
2. Do you realistically think someone else would throw in a competing bid.(Disney?????)


Personally, I think it's a great sector and still with phenomenal growth potential and am sorry in some ways to get taken out.

Disney Inc has been a star performer for me and I had similar long-term high hopes for Merlin.


Maybe I'll hold off from selling just to see if anything happens -or from accepting the offer- as this is a big story which will attract media coverage and maybe it will flush out another suitor as it is such a growth sector.

Looking forward to your reply.


ALL IMO. DYOR.
QP

[leading] 28/6/2019 08:23

QP - Agree it is unlikely. However Bidco only has commitments to vote in favour of the offer from 14.23% of eligible shareholders, so there is potential for a counter-offer I would have thought.

[quepassa] 28/6/2019 07:29

very very rare that an unsolicited rival bid comes through on a recommended offer.

on what grounds do you base your comment please?

[leadersoffice] 28/6/2019 06:36

Also, I wouldn't rule out a counter bid.I've just found the price .., it was £3.15 in 2013

[leadersoffice] 28/6/2019 06:30

Just trying to work out what was the offer price when they returned to the market was it in 2013? Was it £3.85?

[dplewis1] 28/6/2019 06:20

Painful for Marshall Wace, AQR, JPAM etc. Coming into the office to cover a large loss on a short can't be fun on a Friday..

[quepassa] 28/6/2019 06:07

RECOMMENDED OFFER AT 455p.

ALL DONE.

DOESN'T SURPRISE ME.


CASH OFFER.RECOMMENDED.

15% PREMIUM to Yesterday's close


MY SECOND TAKEOVER IN A MONTH ( MUCKLOW AND MERLIN ). WHO SAID UK M&A WAS DEAD?

WELL DONE TO ALL HOLDERS.


ALL IMO. DYOR.
QP