I guess we're seeing what happens in a credit squeeze, those with access to capital are going to call the shots, particularly when things look like they're going to get worse before they get better. Shed will call the deal it wants, or walk away, there are likely to be more deals on offer before too long, as over leveraged real estate 'kings' have to bend the knee. |
SHED new deal looks a total non-starter to me - wonder why they bothered with such an elaborate and clearly flawed proposition.
They should just have withdrawn and saved SHEDloads full of additional fees. |
This would be very unappealing for API - they lose their best assets for a poor price, and then have the expense and hassle of realising their other assets - this might take a couple of years and in the meantime they have to cover all their running costs from a smaller asset base (so much higher costs in percentage terms). |
I still think it'll go to CREI, due solely to the board recommendation.
If there's a 3-way split, then wind-down option. Try to get a bit more out of SHED, ideally in cash, for the good part.
Been a wasteful show of hubris so far - CREI shareholders don't want the deal (why mash a high discount REIT to their previously low discount one). SHED shareholders clearly don't want it, whether with the offices or just industrial/RP, because SHED is neither - it's last mile (have they edited their website yet?).
Potentially 3 sets of wasted corporate finance/advisor/defence fees coming up. |
Doesn't seem too bad for SHED shareholders. Main thing is they don't overbid. If they overbid their own shareholders will reject it anyway. I suppose API board were underwhelmed with the implicit value being placed on their offices in the previous bid, so SHED have said "ok, we will only buy the stuff we actually want" and you can sell your own offices if you think they are worth that much.This would need 25% of API shareholders to vote against the CREI proposal and then API and SHED shareholders to for (75% majority each vote) . It feels not that likely to go through. API don't have that many big shareholders so they would need a handful of those with 2, 3, 4, 5% to vote against. There are lots of retail shareholders who mostly don't vote at all, or not in any single way so they tend not be pivotal.Some extra expenses though. |
From what I can see this deal looks worse than the original deal - they want the good bits of API (at a huge discount) and then want API to deal with getting rid of what's left. |
Strewth - certainly a load to read & try to comprehend. Which to Hold/Buy - API. CREI or SHED? CREI really hammered down on Friday, making their API offer now just 54.8p, same as the SHED offer at 117p! |
They seem to be doubling down on something SHED shareholders clearly don't want. |
A bit of a tome :- |
It ought to co with the recommendation, but still time for that to be switched due to another PUSU extension.
I'm out of CREI and into API, still holding SHED. Expecting/hoping CREI get API. |
Now sold API and bought SHED. I originally bought API as a cheap way to get into SHED, but feel the deal won't happen and in any case the discount between API and the exchange ratio of 0.469 has now disappeared, so may as well just buy SHED. Also SHED could rerate if their proposal falls through. |
You could write to SHED with your views Eg.ir@urbanlogisticsreit.comI am an individual shareholder with X shares held through Y.I note your recent non-binding offer for API and was not adverse to this proposal.Based on information I have at the moment, I would not support any enhanced offer as there is not a convincing argument that it will add value for shareholders and may be inconsistent with the strategy described in the prospectus which was the basis for my investment.Best regards, |
Shed won't improve the offer IMO. I suspect they will now be in play as they won't raise funds to expand based on LTV (debt) and discount to NAV (equity) so in limbo. SRGO could make an opportunistic approach. Shed have already stated there are few targets available. |
Either SHED raise, which they'd be mad to after their share price reaction, or it's CREI's or wind-up.
Will be an interesting split vote - some for SHED, many for CREI, suspect plenty preferring wind-up.
Fingers crossed that SHED walk, dcb, and I can sell :)
API ought to have given up the ghost at least a year ago IMO. |
· Accordingly, and for the reasons outlined in this announcement, the API Board continues to believe that the CREI Merger represents the best outcome for API Shareholders, and reiterates its recommendation that API Shareholders vote in favour of the CREI Merger.
· Nevertheless, the API Board has decided that, while it continues to view a Managed Wind-Down as a less attractive option for API Shareholders than the CREI Merger, it intends to pursue such an option in the event that the CREI Merger is not approved by the requisite majorities of API and CREI Shareholders. |
Brexit is irrelevant
I think it depends on what you believe Brexit was about. I was referring to the view expressed by Baroness Altman. But as Makinbuks says - going off topic |
Agreed, & not sure why they're dragging their heels over it so much. |
Brexit is irrelevant to this argument. The point, irrespective of their origin, is that the rules are silly and having unintended consequences. MIFID similarly should be revisited. It is virtually unfeasible currently for an ordinary small business to contemplate funding growth through becoming a public company |
Anything to ensure that Brexit fails. Altmann has changed her tune. She was a staunch remainer. |
FCA (again) :- |
Segro managed a large placing at about 8% discount to NAV. So good read across for SHED still good demand. Hope my API become SHED. Tempted to also add as recent weakness due to merger, |
"in such cases.....
Read the defining words Specto.
Also, not ignoring NAV; just prioritising earnings & yield. |
I held off adding on Friday, however towards £1.15 looks attractive?.
Would be surprised if institutions do not favour SHED (over CREI) as that combo arguably gives significantly more liquidity due to size - although markets can surprise, etc |
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