Supermarket Income Reit Takeover Rumours (SUPR)

The poison pill means that on any takeover, the directors get a little bit more and the shareholders correspondingly less. As it was before, any acquirer could have negotiated the payments lower. The store acquisition looks good but this behaviour is disappointing.

Probably that plus board wanting to ensure that there’s clarity if something happens; especially given all the grief over SONG Don’t think there will be a takeover The multiples it’s trading at would be enticing, but not super attractive, to the US net lease REITs - but add in a premium and that becomes much less enticing Hard to see how PE would get to their target IRRs also after paying a premium given that while they could add extra debt it wouldn’t be cheap debt Shareholders would be mad not to insist on a ransom level premium given that they won’t be able to replace the investment

Have they felt the need to change IAA given the current environment of takeover/mergers in the sector?

This is great news given one of the bear points was how to grow the dividend. Looks like a nice opportunistic bolt-on at their target yield 750bps i think this adds to the buy case here. Interesting that the IM mandate is changed incase of a takeover/wind-down event.