Ucp Share Discussion Threads

[cgequityinvest] 11/8/2010 12:09

The difficulty here is that there is such a paucity of up to date information that it is impossible to tell whether 30p or 80p is good or bad value. We have had no real information since the Jan conf call when they talked about the market picking up. We have no letting figures and no recent NAV values. The only pronouncement made is about the downside impact of the potential SEZ changes.

Yes 30p is a fraction of NAV but if there have been no recent lets and the market is very difficult then any premium above this may be a bonus. On the other hand if letting activity has picked up and NAV values have bottomed 30p looks ridiculously low.

I wrote to the board about a month ago complaining about the lack of up to date info. From the recent newspaper coverage it looks like the independent non execs are of the view that Unitech are the best buyer and they are trying to extract a higher bid from them.

One of my concerns is that Nectrus which is a subsidiary of Unitech have a potential huge conflict of interest - if they clinch deals in the current market place it means their parent will have to pay more to buy the company!

In my view we need to hold the non execs to account and when we vote on any recommended bid we need the facts to make a decision whether to accept.

[scburbs] 11/8/2010 08:41

Thanks Whibbled. If they were to offer 30% more then they would have reached the heights of a low ball offer. However, to be fair, I would start to be interested at the 40+p level as not a core holding for me and it is approaching double my purchase price of 21p. More importantly I think this sort of level (a clear premium to the 09/10 highs) would be more likely to get HSBC and RBS to bite, particularly given progress will be slow if it remains listed.

[vlain] 11/8/2010 08:18

lift offf!

[whibbled] 10/8/2010 13:20

HERE WE GO THEN........

Unitech May Up Offer For Corporate Parks - Unitech Ltd is looking to sweeten the deal to buy the 94.5% stake in Unitech Corporate Parks Inc (UCP), which is listed on the Alternative Investment Market of the London Stock Exchange. The hiked offer could be 10-30% more than their last offer price of 31 pence/share. (DNA)

[flying pig] 09/8/2010 09:20

directors have the traditional fiduciary duty to their shareholders as a whole. Unfortunately not all of them take it seriously!
However, there may be one or 2 honest directors with some morality lurking on the board. Let us hope this is the case! professional advisers also need to take care, but again some have over flexible attitudes.

[scburbs] 29/7/2010 12:26

As I said it is up to the shareholders to push for a higher price, but not sure whether they (HSBC/ABN) will have the stomach for it or whether they just want out at any price.

[peterboroughmatt] 29/7/2010 11:00

But who is going to push for a better deal for UCP shareholders? The UCP board are in bed with the Unitech board.

[whibbled] 28/7/2010 23:58

News Item, posted on the iii BB

[keya5000] 28/7/2010 22:07

I would expect its the usual, go in so low its almost a relief whan an offer of something nearing acceptability eventually comes.

Would expect nearer mid 40's being final take over price.

[fountains] 28/7/2010 10:37

I shouldn't think that this offer will be accepted so don't worry.

[mister md] 28/7/2010 08:36

what a con !
NAV at 98p at last results and now try to a derisory offer of 31p based on:

'cautious and conservative approach to the build-out of its portfolio '
'UCP continues to remain cautious in respect of its commitments '
'recent draft Direct Tax Code... has created uncertainty in the letting market. '

[crowshott] 28/7/2010 08:23

The shares sold at £ 1 and now 31p on offer. The directors seem to want to sell it on the cheap and the assets are worth 3 times. The prices of finish projects would be going up. It seems that the offer undervalues the company and makes the shareholders who invested £ 1 a share as the losers. The winner are the directors who either planned the buy it back on the cheap.

[bones30] 28/7/2010 00:38

> investment in what is currently a relatively illiquid stock, in cash, at a

Sounds to me like someone big wanted out.

[dibbs] 27/7/2010 21:13

I'm also most unimpressed by todays RNS. 31p is a price that we have been above for a period of time only very recently and I firmly believed that we would see 31p again soon, but as a steping stone towards a much higher share price thereafter.

"The board of directors of Unitech believes that this possible offer would
provide an attractive opportunity for UCP shareholders to realise their
investment in what is currently a relatively illiquid stock, in cash, at a
premium to current trading levels."

What Unitech believe and what we, as small PI's feel would seem to be very different! Lets hope that 31p is not end game.

Dibbs

[cgequityinvest] 27/7/2010 18:51

Real worry of a stitch up here!

A low ball offer at a fraction of NAV
A relatively small premium
Lettings are the responsibility of a wholly owned subsidiary (Nectrus)of the company making th eoffer - are they really going to be rushing out to sign up new leases or will they be holding them back until the deal is done!
A statement from the company which smacks of "the market is very difficult"
A company which is woeful in communicating to its shareholders.

I can only hope the institutional shareholders will be telling them to increase the offer by a significant amount. Th alternative is that they appoint specialist advisors to put UCP up for auction to get some competition and test the market.

I just have a horrible feeling we are going to be sold on the cheap.

[peterboroughmatt] 27/7/2010 18:45

True RBS would proberbly take 10p for it.

[scburbs] 27/7/2010 18:44

I don't think RBS would view it as the same ABN Amro.

[peterboroughmatt] 27/7/2010 18:41

Its the same ABN Amro and HSBC that the same Unitech punted these out to at a £1 a pop.

[scburbs] 27/7/2010 18:39

I would have thought that UCP would have been obliged to state that the potential offer was from a connected party! However, the fact that it was accompanied with some downbeat comments did lead to an impression that it was an offer from Unitech (very smelly!). The UCP board should be knocking them into touch, it is time to show their independence, although to be honest the decision would seem to be largely in the hands of ABN Amro and HSBC (ABN unlikely to be a strong holder).

[vlain] 27/7/2010 18:38

31p offer from Unitech, disgusting.

[bones30] 27/7/2010 18:32

Looks quite a low ball offer to me. 31p.