Sse Share Discussion Threads

[garycook] 11/8/2021 03:15

Same at GSK.But you can be sure Elliot have a large stake.

[marktime1231] 11/8/2021 00:08

Interesting that this is still being reported by some as rumours. Where is the confirmation, no statement from either SSE or Elliott and no rns reporting a new holder of a significant stake.

[bountyhunter] 10/8/2021 19:06

Potential Elliott shake-up 'positive' for SSE shareholders

[bountyhunter] 10/8/2021 08:33

Probably too much to expect a further rise today after yesterday,
...unless a TR1 drops confirming Elliott's stake!?

[bountyhunter] 09/8/2021 16:13

Cheers Will, yes that was a lucky guess of +80p (to the nearest 10p of course! ;) Could go higher yet though as the week progresses, in excess of the all time high of ~£17 is looking achievable but the chart algos may halt it there if it does get that high!

[williamcooper104] 09/8/2021 15:29

Looks a better call than my 30p Happy to lose that one though :)

[bountyhunter] 09/8/2021 15:00

Quite a few I think SB, don't like to see UK companies being snapped up either.
I also have my eye on WTB now that Costa have been stripped out (catalyzed by Elliot!)

[bountyhunter] 09/8/2021 14:01

"The Mail’s report also noted that sources in the City considered any corporate pressure on SSE could be of interest to one of Europe’s major power firms such as French group EDF or Spain’s Iberdrola, the latter of which bought Scottish Power in 2007 for £11.6bn."

[suetballs] 09/8/2021 14:00

With all this cheap money about I just wonder how many UK companies are under the takeover microscope.
Don't like to see it really but I suppose it's inevitable.
Suet

[bountyhunter] 09/8/2021 13:47

It's looking like my +80p estimate yesterday for today's SSE gain by the end of day will end up being an underestimate! We could well see a new all time high of £17+ sometime this week imho.

[marktime1231] 09/8/2021 12:36

I think "transactions based valuation" means there is more value in SSE assets than currently appears on the book, as evidenced by recent disposals, especially some nimble disposals of stakes in renewables schemes it is involved with. Even the SGN sale was well ahead of book value.

SSE has been cleverly selling stakes in its more mature ventures and using the gain to invest in a pipeline of brand new renewables developments (and to supplement the cost of its dividend promises not covered by operational cash flow). Big offshore wind farms etc.

There is super strong emerging demand for renewables assets which are close to operational, a short cut for dirty companies which did not have the opportunity or foresight to invest and develop their own. SSE (Elliott) is starting to see the rewards available for its early moves into green assets. I don't think the buyers would be the likes of Equinor or BP, who are already following SSE's example with investment in their own ventures. It will be someone slow off the mark but overflowing with cash from dirty operations, someone who would get left behind by the end of coal and oil and who would be clobbered by carbon taxes.

So the perceived enhanced value is in SSE's (renewables) assets, their green value and income potential. Not based on multiples of SSE's current income or profit. Elliott reckons he can sell on a swathe of SSE's assets for a 50% or 100% gain, mostly in the renewables sector, and he may well be right. Presumably the rest of SSE's business left behind would look pretty poor as a result?

[jrphoenixw2] 09/8/2021 12:30

== > Tresham: 'The scrip dividend is looking attractive at £14.75'.

Interesting point^. The dateline in the headers is incomplete for 2021. According to
5-Aug 'Scrip reference price announced'
26-Aug 'Final date for receipt of scrip elections'

Then per SSE/Reg News
5-Aug 'Scrip Reference Price'

SSE PLC
SCRIP DIVIDEND SCHEME
The Board of SSE plc ('the Company') confirms that the Scrip reference price for the fully paid ordinary shares to be issued to shareholders electing to receive the Scrip dividend alternative for the final dividend for the year ending 31 March 2021, payable on 23 September 2021, will be 1,475 pence per share.

The Scrip reference price has been calculated by taking the average mid-market closing price of the Company's shares over the five business days commencing on the ex-dividend date. In respect of the final dividend for the year ending 31 March 2021, this was the period 29 July to 4 August 2021.

If all of the Company's eligible shareholders as at the record date of 30 July 2021 were to elect to participate in the Scrip Dividend Scheme in respect of their entire shareholdings as at such date, based on the Scrip reference price of 1,475 pence per share, the maximum number of shares required to be issued by the Company, for Scrip dividend purposes, would be 40,032,576 representing approximately 3.8% of the Company's issued share capital (excluding treasury shares) on the record date.

The exact number of shares which will require to be issued will be established after 26 August 2021 the final date for receipt of elections to participate in the Scrip Dividend Scheme.

Shareholders wishing to participate in the Scrip Dividend Scheme should contact Link Group and return their mandate forms to arrive no later than 26 August 2021. Shareholders wishing to withdraw from the Scrip Dividend Scheme should ensure their requests to withdraw are lodged with Link Group to arrive no later than 26 August 2021.

Shareholders who hold their shares in uncertificated form should consult their Crest sponsors as appropriate.

Scrip dividend timetable for the final dividend for the year ending 31 March 2021
Ex-dividend date 29 July 2021
Record date 30 July 2021
Scrip reference price calculation period 29 July - 4 August 2021
Last date for receipt of Scrip elections 26 August 2021
Dividend payment/Scrip issue date 23 September 2021'
-----------------------------------------------------------[End quote]---

Scrip Ref PX 1475p vs market price (at time of writing) 1600p. = A 125p premium for taking the div as scrip. TYVM/Not to be sneezed at etc.

ps@ Tresham. Have to laugh at how one of more personally profitable suggestions I've ever seen on ADVFN was made in such an understated fashion!

[skinny] 09/8/2021 10:55

The times .

[williamcooper104] 09/8/2021 10:06

It is NEE, for instance, is a US utility that transformed into a renewable developer/operator (higher market cap now than exon mobil) - its valued as a growth (from memory 30 plus PE) stock rather than a utility That's the obvious arbitrage Elliot will seek to unlock

[lammergeier] 09/8/2021 10:02

The Times seems to suggest that the " Transactions based valuation " is 50% higher

than the closing capitalization value last friday of £16 billion.This leads to a

figure of £24 billion. Another old yardstick used by many city pundits is 10x pre
tax profits ,this leads us to £25 billion close to the Times figure.
Shareholders should sit tight and await developments.





































325

[wad collector] 09/8/2021 09:35

Sit on hands time for me ; the share price has not been rising in the way that would be expected if there was a serious bid probability , that would have to be at a substantial premium to last weeks share price
Like most holders I have been here for the long term and not worth selling for a few percent extra today. Either the bid rumour is real and we will see a bigger rise, or it will fall back to pre-rumour prices and I remain happy to hold .

[bountyhunter] 09/8/2021 08:57

Cheers una, it's clearly the renewable energy business which is the jewel in the crown which makes SSE of interest to potential predators. It probably is the case that Elliot may try to get that spun off as they did with Costa coffee from Whitbread. I like the suggested 50% upside! :)
P.S. ...rising steadily as news leaks out, I'm expecting a further rise when the US market opens as we saw last Wednesday and am sticking with my +80p guess by the close although that may be a little optimistic.

[tresham] 09/8/2021 08:46

The scrip dividend is looking attractive at £14.75

[unastubbs] 09/8/2021 08:32

thanks bountyh - here's the complete article, some added background to events

[bountyhunter] 09/8/2021 07:09

Looking good, from that Times article..

Talk of break-up at SSE after Elliott Management builds stake

Monday August 09 2021, 12.01am, The Times
Emily Gosden, Energy Editor

"SSE, a former sponsor of the Women’s FA Cup, has long been under pressure to spin off or sell a stake in its renewable energy business

Shares in SSE will be in sharp focus today after reports that Elliott Management, the activist investor, has amassed a stake in the FTSE 100 energy group.

The reports will fuel speculation over whether SSE, which operates wind farms, gas power plants and electricity networks, could be broken up or taken over.

Leading analysts say that recent deals in the sector imply the company could have a “transaction-based valuation” 50 per cent higher than its £16 billion market capitalisation."

[jrphoenixw2] 08/8/2021 23:09

Otemple: 'I think it will depend if they have to disclose it for being over 3%. GSK didn't really rise until the announcement (lunchtime ish I think) despite it being in the press.'

I'm unwilling to guess. Reason being I do not believe the Mail could be in a position of revealing a story that isn't already thoroughly known to the City dealers seeing the flow right in front of them on their screens.

I'd need to see more numbers/trades/positions before I believe serious stake-building is taking place here...
[Meanwhile happy to hold this as my largest position... :)].

[bountyhunter] 08/8/2021 21:22

I believe they have a few days from when 3% was presumably exceeded to do that so may not definitely be tomorrow I suppose. Even so that Mail article should be a sufficient indicator of Elliot's involvement to trigger a decent rise tomorrow imho.

[otemple3] 08/8/2021 21:18

I think it will depend if they have to disclose it for being over 3%. GSK didn't really rise until the announcement (lunchtime ish I think) despite it being in the press.

[bountyhunter] 08/8/2021 20:56

Yes otemple so I think a ~5% rise here by the close tomorrow is not out of the question. I still think it will be nearer +80p than 25p by the close but could be wrong. Any more guesses?