The Local Shopping Reit Share Discussion Threads

[kooba] 10/3/2019 17:34

Ha...was very happy to have taken the distribution but I can't so dealing in the present. Few more than 8000 as it goes.

[kooba] 10/3/2019 17:10

I will be looking at taking increased shares in mix and match it could be a very cheap way into THAL ...haven't gone through the terms properly yet but might be advantageous.

[frazboy] 10/3/2019 16:38

Hindsight, Hillowad - Maybe kooba was the guy with the 8,000 shares that voted against the liquidation. I wondered who it was

[hindsight] 10/3/2019 15:20

Maybe just elect for maximum cash in the mix and match hey..

And who exactly do you think will take the other side ?

[kooba] 10/3/2019 13:03

So even though there was a stated intention to liquidate the company may no attempt to value the assets on a liquidation basis for a couple of years? Suppose fees higher on unrealistic valuation..nice.As to the lump offer I have know idea if there were caveats etc...but I won't assume there were.Maybe just elect for maximum cash in the mix and match hey..THAL owns 25% of the company and deserves a say ...and has done everything by the rules. Because it does not suit every shareholder is tough...but they are offering an out which currently is worth more than the Liquidation estimate..which is not going to be even close to 33p at current rate...so why is this considered opportunistic and without board recommendation? What are they going to come up with to distribute cash without shareholder approval exactly?

[hillofwad] 10/3/2019 09:38

Well unless DS turned into King Canute and changed the Property Market there was nothing he couud do to add value apart from increase the throughput thru the auction houses


"Nb the nav was stated at well over 40p back then."

That would have been a"Red Book" valuation assuming an orderly disposal of assets on an individual basis with a full marketing campaign over time It doesn't include selling costs etc so-take off another 5%
It's not a carved in stone figure and the mix in prices which vary 10%-20% dependent on the weather and whether the tenant is intersted in buying in -take that with a huge dose of salt

The portfolio offer could have been heavily caveated and subject to funding and maybe they didn't want to stop the trickle down selling process to accomodate it

Whatever they have done pales into insignificance what DS is trying to do-force unwanted HAL shares onto LSR shareholders

[kooba] 10/3/2019 08:45

"There was very little THAL could have done different to what has already taken place at LSR"Well we will never actually know as DS attempt to take control from the self serving buffoons was blocked by a friendly institution that has itself been forced to wind itself up.Nb the nav was stated at well over 40p back then.The timescales in disposing of the portfolio in a declining market has not served shareholders as they have seen the already depleted asset value sink further and doubtful they could even get 33p back to shareholders now on liquidation....i was also informed they rejected an offer for a large block some time ago at a modest discount to the prevailing book value but rejected it and subsequently would have sold same over a period at a greater discount , meant they kept their fees rolling in though.I also think there was awful property management which also led to devaluation of assets.Admit on the surface motivation looks obscure from Thalassa viewpoint but assume he is trying to make the best of his investment and is at the same time offering an exit that I doubt the company can match.No one has done well out of this ill thought out and mis managed counter apart from the managers and the auction houses!

[hillofwad] 10/3/2019 08:10

Kooba

"I think he is a smart operator and hope he is aligned with his shareholders ...quite unlike the self serving buffoons managing LSR."

There was very little THAL could have done different to what has already taken place at LSR except perhaps stuffing properties into Allsopps'auctions a bit quicker.

The whole portfolio had been thoroughly marketed, anybody who wanted to buy a property could

They could only get the properties away in bulk with a heavy discount
The only buffoon here is Soukup who was done up like a kipper handing over 36p a share to Grahame Whately earning diddly sqat. He is now seeking to punish LSR shareholders for his error

[gbjbaanb] 09/3/2019 01:41

Indeed, whilst I would have been happier if LSR had liquidated itself and returned 36p to us, the poor market for retail properties, High Street brands collapsing, etc meant that 33p was quite a good result. I would have been happy to have received that and moved on to new pastures with the cash even though the small profit would have not been anywhere near what I originally hoped for.

But now it looks like even that will be denied us as this gets dragged on and on.

[varies] 08/3/2019 19:57

As a longstanding THAL investor I was content with most of Mr Soukup's deals until (1) he instigated the issue of preference shares that lapse on the sale of the ordinary shares to which they are attached, thereby consolidating his hold over the company and (2)he frustrated the orderly liquidation of LSR for no better reason, as far as I can see, than his reluctance to admit that THAL would have been better off if it had never bought its LSR shares in the first place.

Without the preference shares and with cash receipts from the liquidation of LSR, THAL would be a much more attractive company to hold shares in.
I agree with SteMis that a shareholder revolt by THAL shareholders after the LSR takeover is completed (if this comes to pass) would deserve our support. I suspect, however, that Mr Soukup would find some way of suppressing it.
Since LSR's assets consist almost entirely of cash and THAL already has a quotation, I cannot see how a takeover of LSR on the terms proposed can be of any benefit to THAL shareholders other than Mr. Soukup.

[kooba] 08/3/2019 17:38

Yes with the benefit of hindsight the loan to facilitate incentives to employees doesn't look great..but hindsight is wonderful thing.The transaction was before the collapse in the Oil price and the sector when THAL could easily raise money at a premium...when the tide went out wasn't so attractive.Not sure any oil services company saw the severity of the downturn especially the myriad that went bust!!With the old hindsight pretty sure many LSR holders wished they'd never heard of it!

[kooba] 08/3/2019 17:15

Answering own question there.... WGP was also managed extremely well during a huge downturn in the sector so getting the ROC was a result.If one goes back pre WGP DS employed capital successfully in capital markets getting decent returns.I think he is a smart operator and hope he is aligned with his shareholders ...quite unlike the self serving buffoons managing LSR.On the surface this deal does not look compulsive for THAL tbh where I am a holder.But I am confident there is value enhancement to be achieve there.Much talk about THAL issuing new shares to buy LSR and how dilutive..however need to look at reissuing the shares held in treasury at average 70p much less dilutive.Good to have management with a decent stake imho.

[frazboy] 08/3/2019 16:47

He did well with WGP, the sale price looked good, didn't realise he paid so little for it

[cockerhoop] 08/3/2019 16:37

Bought WGP for 800k

He's also done some less than value creation deals :-) Loans to EBT etc

[frazboy] 08/3/2019 16:22

'Mr Soukup does have a track record of creating value through acquisitions ..and also over the life of Thalassa being rather clever in the fx markets.'Can you give examples? Don't forget the rights issues/cash raises Thalassa have been through over the years. Simon Thompson (IC) covered these 2/3 weeks ago - I wasn't aware of those until I read the article

[kooba] 08/3/2019 14:56

Mr Soukup does have a track record of creating value through acquisitions ..and also over the life of Thalassa being rather clever in the fx markets.I rather think with his shareholding he is more aligned to delivering shareholder value than the management of LSR...who have lost a fortune in a awful investment strategy then have lost as again in a ramshackle winding up ...which has taken an age for no reason than to extend management contract as far as I can tell.Why they continue to 'defend' against an 'opportunistic' ? asset backed offer that they have no chance of bettering is beyond me....but will be sucking out more shareholder value in the process.

[stemis] 08/3/2019 13:49

The current LSR price of 29p has an implicit value of 55p.

Rather than dumping their shares post takeover (and getting a reduced value) maybe former LSR shareholders should get together and convene an EGM to throw Soukup from the board and wind up Thalassa. After all they'd have potentially 16m shares, whilst Soukup has only 3.6m (or with the THAL discretionary Trust 6.6m). I'm sure quite a few of the existing shareholders wouldn't mind a wind up, especially as NAV/share is 105.8p. That would make the offer really worth 42p a share...

[varies] 08/3/2019 13:06

If thal shares are heading for 50 p then a switch into lsr looks all the better
A drawback is that thal does not expect to pay lsr holders until May

[hindsight] 08/3/2019 12:52

gbjbaanb, your rather more optimistic than me, I have pencilled in 50p for a Thal share

[gbjbaanb] 08/3/2019 12:29

varies - its because the CEO of THAL paid something like 33p per share for his LSR holding and doesn't want to lose money, that's why he thinks he can takeover LSR and .. well, after that nobody knows, maybe he thinks he'll make money from the remaining property or fees on selling them, or maybe he thinks THAL shareholders will take a hit as the share price falls (ie I will buy something off you in exchange for magic beans worth 80p a bean, but oh no, the beans are suddenly worth 70p once the transaction is complete, oh well buyer beware and all that)

[tiltonboy] 07/3/2019 14:15

varies,

I think you will find the vast majority of LSR holders will be seeking an exit at the first available opportunity, if the bid goes through.

[varies] 07/3/2019 13:13

I am new to this board having yesterday and today sold a third of my Thalassa shares at about 80p and bought LSR shares in their place at about 28.6p. The terms of this "arbitrage" look too good to be true and, I dare say, may prove to be so.
I am very pleased to see Hindsight's reference to the THAL preference shares. I had noticed myself that these were to be cancelled if the offer for LSR succeeds. THAL shareholders with the exception of Mr Soukup will be better off without them.
I have not been able to view the Offer Document sent out yesterday and would be much obliged if some kind person could explain to me the effect of THAL's shareholding in LSR (c.27%). I presume that the offer extends only to the c.73% not owned.

I cannot understand why THAL could not have accepted the liquidation proposals made by LSR and taken its share of the cash without bother ! As it is, many LSR shareholders may reasonably regard this interference unkindly and sell their THAL shares if and when they receive them.

[hindsight] 07/3/2019 11:10

Yes Luxemourg and preference shares, but at least latter reconfirmed in doc, explanation for them seems rather dubious though

Thalassa Preference Shares
Thalassa announced on 4 October 2018 that each shareholder of Thalassa was issued with one Thalassa Preference Share for each ordinary share held in Thalassa as at the record date of 30 September 2018. The key features of the Thalassa Preference Shares are that (i) they are unquoted; (ii) they are uncertificated; (iii) they are non-transferable (meaning both that the Thalassa Preference Share is not transferable or tradeable itself and, in the event that a Thalassa Shareholder disposes of any Thalassa Shares, the corresponding Thalassa Preference Shares will be cancelled and will not be transferred to the transferee of such Thalassa Shares); and (iv) they are without any shareholder rights (including as to any return on a winding up or other realization event for Thalassa) other than so as to provide the shareholder holding such Thalassa Preference Share with 10 votes per share in addition to his existing one vote per ordinary share.

If the Offer is successful, the Thalassa Board will authorise the cancellation of the Preference Shares. The Thalassa Directors believe that in the circumstances of Thalassa acquiring control of LSR and thereby deploying a certain amount of its cash resources, the original rationale and benefit of the Preference Shares falls away.

[frazboy] 07/3/2019 08:32

Question is, does he have a devious plan, which will shaft holders!Watch out for that Luxembourg listing, Tilton!He simply can't be trusted