Whitbread Share Discussion Threads

[jeffian] 22/7/2019 11:48

"Capital return programme completed

Whitbread has previously announced its plans to return £2.5 billion surplus capital to shareholders, unless more value creating alternatives arose. The first phase was a share buyback programme conducted from 17 January 2019 to 10 May 2019. This first phase completed with a total of £482 million of Ordinary Shares repurchased.

The second phase is the Tender Offer, which will result in £2 billion of Ordinary Shares being repurchased. This means the total returned to date is £2.5 billion and, therefore, the Company is not planning any further returns of capital."


So, am I understanding this right? On 31/8/18 when the Costa sale was announced there were 183,620,409 shares in issue. The share price following the sale announcement was around £47. WTB subsequently announced that the amount to be "returned to shareholders" was £2.5bn = £13.60/share(?). Have I got this right? I didn't participate in the Tender Offer and now own the same number of shares worth......about £47/share. I must say, I don't feel as if I've seen much of that £2.5bn........

[philanderer] 22/7/2019 09:57

Yep it was a bad plan.

[retsius] 22/7/2019 09:44

Well good for it!

At last some common sense. I would have kept the whole £3.5B in the bank and looked for opportunities going forward.

Massive shorters now into the stock to manipulate the share price and the company is unable to do anything about it.These shorters can hammer the price downwards.

The ordinary shareholder to be shafted when the company should be ROCK solid.

imho/dyor

[philanderer] 22/7/2019 09:31

Market open

Weighing on the main index was Premier Inn owner Whitbread , which lost 2.4% after the company said it was not planning any further capital return to shareholders

Alliance News

[vulgaris] 22/7/2019 08:51

Telegraph saying that 17.6% of stock on load to shorters

[philanderer] 18/7/2019 16:22

RBC downgrades from Market Perform to Sector Perform

[sharw] 18/7/2019 01:00

Not a good day for Premier Cribbs Causeway:

2 p.m.



10 p.m.

[commuter10] 13/7/2019 16:52

SIB Crystal Ball stuff. But my guess is that most will hold on to their shares as they can't understand WTB's Buy Back offer.

[mozy123] 12/7/2019 13:48

So we sell costa, and then use the proceeds to buy people out of the premier inn busines. Wonderful...NOT

I will retain my holding.

[southislandbrave] 12/7/2019 11:38

What would anyone think would happen to the share price on either A(nnouncement) day when they tell how many shares they have agreed to buy and what the strike price is, or P(ay) day when they actually send the cash?Up down or stay the same(ish) ?

[sharw] 10/7/2019 15:41

coolcalculated - the new all or nothing rule must be something your broker nominee a/c has put in because WTB has not modified the "submit a tender to sell some or all of their Ordinary Shares" - in fact they allow you to put a different number of shares in different bands provided the whole does not exceed the number you own.

See-



The "4 days" to make up your mind is also a broker thing - if in your own name you would have a week (or 8 days if you really trust Royal Mail!).

[commuter10] 10/7/2019 15:07

Agreed all too complicated & as most shareholders don't understand the Buy Back offer will stick as they are 7 hold on to their shares for now. I have a feeling that they may Not be able to buy as many shares as they need & will be back with a better more simpler offer. Hold & Wait I believe is best at this stage.

[ptch] 10/7/2019 14:48

coolcalc, have you worked it out yet?

My understanding is that the Volume Weighted Average Price will be determined in the 5 days prior to the offer date. This will determine the Strike price - all subscribers to the offer will get the same price despite the market price on that day being variable.

It is a Dutch auction, so the company will buy as many shares as they can from the people who offer to sell at strike. If there is still some of the £2b left over then they will start buying strike + 1% shares. People who only offer strike + 4% may not get to sell any back to the company if the £2b has already been used up buying cheaper shares.

I've been a long term holder and i think I will keep it that way. The price may stagnate for a while as they establish themselves in Germany but I think there is a real market potential there. I often stay in hotels in Germany when on business trips. Knowing there is a conveniently located, clean, comfortable and familiar place to stay would be a real bonus.

[bountyhunter] 10/7/2019 13:23

that's trouble with this company recently, they tend to overcomplicate things which should be more straightforward

[coolcalculated] 10/7/2019 13:17

So does anyone actually understand the tender offer? I have 4 days to make up my mind, and I have no idea what to do...
I have 3 options... Sell at the 'strike price' (which is determined after the fact, by WTB)/ Sell at VWAP average price + 1-4% extra/ do nothing and keep shares.
Can someone help me with the following?
1) What is the difference between the 'strike price' and the VWAP price?
2) Why would anyone pick for example, VWAP + 1% rather than VWAP+4%? Surely everyone would want as much bonus as possible so I don't understand why you get the option? If you pick VWAP+4% are you less likely to achieve the sale of your shares?
3) Any thoughts on what people are going to do? I really have no idea on what the best strategy is, but i'm leaning towards selling as i'm not a fan of how the whole sale to coca-cola has been handled for shareholders, including this tender.

Also, annoyingly my broker has sent an update after the original tender stating that the option to tender only part of your holding has been removed, it is now tender all your shares, or none. Would have liked to go 50/50.

[bountyhunter] 08/7/2019 20:47

Could do, especially as I have been out for a while now due to my dismay with the way the Costa sale was handled! It's a good company but I've not been impressed by the CEO I'm sorry to have to say. The previous one (to May 2015) was top notch and admittedly a tough act to follow.

[jonathancouch79] 08/7/2019 20:43

Do you think the share price will hit £50 anytime soon?

[bountyhunter] 08/7/2019 17:00

The Germans do have higher standards but higher prices to match, so Premier Inns should fit in ok I think if they can promote themselves well in the German market.

[commuter10] 08/7/2019 16:35

Interesting stuff Dime & I stated at a very nice one just outside Oxford. Very comfortable bed as well! But remember the Germans have even higher standards but as their economy is slightly worse than ours now thank s to Angela Merkel they could go down a storm! Latest price today ended at: 4,797.00 so Not far off the £5 Maximum buy back rate. I rate it a 'Watch & wait Hold Rate' for now.

[dime] 07/7/2019 21:53

I am a very long term holder who was thinking maybe time to sell now Costa has been sold off and with the tender offer... ...
I have just returned from Wimbledon where I stayed 2 nights in a relatively new Premier Inn with Bar and Block steakhouse attached.
I think they absolutely have the model right. Every customer we met was hugely impressed and a lot of people I have spoken to recently agree and regularly use Premier. Good maintenance programme is essential to keep the standard going forward of course... but if they do I'm certain this will win in the budget accommodation sector. I was very impressed with the exceptionally comfy beds....and I know it's a marketing claim but they are right! Our room was very clean and the staff in all areas were superb. No idea how this will go down in Germany but have no doubt about the UK expansion. I think I'm going to stick with them...with Elliott as the backstop position!

[philanderer] 05/7/2019 13:45

'Premier Inn at Admiral Park'

Whitbread taps into island life with 600 Premier Inn rooms on island communities

Scheduled for 2020 – 100 Rooms

[commuter10] 05/7/2019 11:06

Oh! Thanks for the news.

[philanderer] 05/7/2019 10:06

Nice dividend into the account this morning :-)

[commuter10] 04/7/2019 16:12

When will the Strike Price be announced? Is it likely to reach the Maximum £50? How strong is the company after cashing in to Coke on Costa coffee? Will Premier Inns now push on in Europe? How many more can they open in the U.K. before saturation point?