The Local Shopping Reit Share Discussion Threads

[tiltonboy] 07/3/2019 08:00

They look pretty intent on using LSR as a shell of some sorts.

The manipulation of the share price, and the extension of the buy-backs has made a decision somewhat harder to make, so you've got to say that he has played a blinder so far, albeit being a detriment to THAL.

Question is, does he have a devious plan, which will shaft holders!

[gbjbaanb] 07/3/2019 01:48

What's the liquidity of thal shares like? If I end up with some, how quickly can I sell them and will the spread destroy any profit?

I imagine no lsr holder will want to keep any either, and that suggests everyone will go for the full cash election option.

[stemis] 06/3/2019 22:16

Offer document is out

hxxps://thalassaholdingsltd.com/documents/NP0319-2862_THALASSA_Force%20Offer%20Document_PRINT.pdf

Quick skim. Offer conditional on THAL getting to 50% (so need about 1/3 of remaining shareholders to accept)

Can elect for full cash of 35.83p subject to scaling back if total cash election exceeds £9.0 million. At that point my calculations have THAL with 55.9%. If THAL get to 50% I'm guessing the prospect of being minority shareholders in a THAL controlled LSR will bring acceptances from pretty much everyone else (although we can only hope).

Don't see why anyone accepting would elect for other than full cash at this point.

First deadline for acceptance is 27 March

[exbroker] 06/3/2019 19:57

THAL paper has been manipulated higher by the buy back. This is a rights issue from THAL noting more. Why do they not want to spend the £6m on increasing the cash part of the offer?
Answer because they can use a small part of it to puff the share price and make the offer look better on paper. The volumes have been very low.
Robert Maxwell would have been impressed!

[gfrae] 06/3/2019 14:48

I agree with most of the above, it appears that THAL is buying LSR at 110% of NAV by partly paying for it with paper valued at 50% of NAV.
It is not obvious what the benefit is to THAL shareholders.

[tiltonboy] 06/3/2019 14:40

Offer document posted.

[kooba] 06/3/2019 14:31

Either way if you think the net realisable to shareholders will be close to 30p and there is no mechanism for returning to shareholders making the THAL offer look rather generous..at the end of these shenanigans after all THALs assets will be predominantly cash based and you will be able to take and least half and maybe a lot more of your holding out in cash...got to read mix and match terms.If the LSR rump is left with a listing who knows where that would trade.

[frazboy] 06/3/2019 14:06

I think he effectively is the board Stemis - FS stood down in May 2018, leaving Graham Cole and David Thomas. I doubt they do much other than rubber stamp DS's actions

[stemis] 06/3/2019 14:01

I agree. I can't see how the rest of the THAL board sit there and allow Soukup to do this. It's crazy. But doing it he is.

[tiltonboy] 06/3/2019 13:45

SteMiS,

Agreed, but THAL have "ramped" their own share price to make the bid worth more. What doesnt make sense is that they are buying there own shares back at increasing levels at up to 80p, then in effect re-issuing them at an equivalent price substantially lower.

Getting 45% of your consideration back in cash, and taking a punt on the balance in THAL on the face of it, might look appealing, but it will be interesting when we all head for the exit together.

[stemis] 06/3/2019 13:37

If they manage to spend material amounts defending a bid which currently offers 35.4p so they can potentially (assuming they can get THAL to play ball) deliver 30p, it would suggest Mr Soukup's has a point about them.

Ok, maybe THAL share's won't hold 81p, despite THAL's £6m share buyback and a substantial discount to NAV, but their sale of THAL's shares would need to be below 59p to be worth only 30p to LSR shareholders. That's 30p cash compared to 30p tied up in a battle between THAL and LSR.

The job of a plc director is to deliver the best deal for it's shareholders, not defend their own egos...

[tiltonboy] 06/3/2019 13:24

kooba,

I didn't mean to imply that legal costs were 10% of assets, rather that they are a contributory factor in my reasoning of a NAV nearer 30p. Of course, the main factor would be further losses on the remaining properties.

[kooba] 06/3/2019 13:12

Always a caveat! Haven't got the offer doc yet !

[frazboy] 06/3/2019 12:50

'Appears on the surface'

[kooba] 06/3/2019 12:34

The last update was for cash and further asset sales giving realised net liquidity of lower end of 33-34.5p (finals) so where I'm taking 33p from . I'm not sure that the property disposals announced this month would have impacted on that assessment and realise that 4m of properties left to dispose of If however there is a material change in that figure they should inform shareholders.If they are indeed spending 10% of assets defending an offer that appears on the surface in the interests of shareholders then there should be even bigger questions on the managements objectives.

[tiltonboy] 06/3/2019 12:04

kooba, I wouldn't be surprised if cash ends up being closer to 30p. Legal costs alone are stacking up, which could be extensive.

With the enhanced buy-backs and current THAL price, it is starting to look intriguing what might happen, but I keep coming back to my belief that DS is not to be trusted.

[frazboy] 06/3/2019 11:59

"Because it looks to me that THAL offer especially now there appears more liquidity from buyback is representing a better exit than anything LSR management has proposed or is in a position to make?"

We need LSR management to confirm that to be true, or otherwise - and hopefully they will do so once the bid document has been published.

[kooba] 06/3/2019 11:56

What's your guess at distributable cash from LSR without bid? You don't believe 33p achievable anymore?Because it looks to me that THAL offer especially now there appears more liquidity from buyback is representing a better exit than anything LSR management has proposed or is in a position to make?Will be interesting to see the mix and match proposal to see what realistically one might get as a max cash option....equally will be interesting to see what a max share option is as it might present a better exit.Are we expecting offer doc today?

[tiltonboy] 06/3/2019 11:46

I don't think it will be close to 33p, but still an arb opportunity. Obviously a decent sized sellers to wants out, which has held the price back

[kooba] 06/3/2019 09:23

So offer 14.64 cash plus 0.26 THAL (@80p) 20.8p totalling 35.44p...with mix and match which might increase that make up.Am I missing something? Wondering why there is no arbitraging?If offer fails then company still has circa 33p...can that be distributed in any way without THAL agreement?

[frazboy] 06/3/2019 07:35

£6m - there's your fire power Tilton

[frazboy] 05/3/2019 13:01

i see from the accounts published by Thalassa today, that DS took over $1m, in directors and consultancy fees, in 2018.

[hindsight] 05/3/2019 12:38

Makes sense them dragging it out so can ramp Thal shareprice up as much as possible with buybacks

[stemis] 27/2/2019 09:03

Well 6th March is Wednesday next week

[tiltonboy] 21/2/2019 15:47

Between 20th February and 6th March