Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to waiting4godot,yyuryyub,88V8,Anonymous,Fluke, for Donating to support the site

Barratt Developments | Redrow merger

Analysing companies' finances and value from their financial statements using ratios and formulae
elephanthunt11
Lemon Pip
Posts: 65
Joined: July 12th, 2022, 6:32 pm
Has thanked: 8 times
Been thanked: 27 times

Barratt Developments | Redrow merger

#645273

Postby elephanthunt11 » February 7th, 2024, 10:14 am

Morning all,

I feel a quite silly asking this, but I’m among friends so..

This morning I woke up, checked my portfolio as I often do before getting out of bed, to see my second largest holding, BDEV, down by around 7.5%

I knew XD date was months away so checked google for BDEV news to discover there was a merger deal proposed with Redrow. Redrow shareholders will receive 1.44 Barratt shares for each Redrow share, a 27% premium for Redrow shareholders.

This is what I feel very silly about: this has completely taken me by surprise. I accept that I may have completely dropped the ball on portfolio management here but what should I have done differently? What mechanism is in place to prevent this information coming as a surprise to me?

Despite thinking of myself as a fairly experienced (dare I say it - successful) investor, I feel quite foolish this morning and believe that this could’ve potentially been avoided were I aware of potential mergers.

Where have I dropped the ball here?

Go easy on me fellas

clissold345
Lemon Pip
Posts: 68
Joined: November 14th, 2016, 11:05 am
Has thanked: 53 times
Been thanked: 12 times

Re: Barratt Developments | Redrow merger

#645277

Postby clissold345 » February 7th, 2024, 10:31 am

elephanthunt11 wrote:Morning all,

I feel a quite silly asking this, but I’m among friends so..

This morning I woke up, checked my portfolio as I often do before getting out of bed, to see my second largest holding, BDEV, down by around 7.5%

...

Where have I dropped the ball here?

Go easy on me fellas


As far as I can see, you didn't miss anything. There were no unusual movements in either share price yesterday - as should be the case. Insiders aren't allowed to act until the news is public.

elephanthunt11
Lemon Pip
Posts: 65
Joined: July 12th, 2022, 6:32 pm
Has thanked: 8 times
Been thanked: 27 times

Re: Barratt Developments | Redrow merger

#645281

Postby elephanthunt11 » February 7th, 2024, 10:40 am

clissold345 wrote:As far as I can see, you didn't miss anything. There were no unusual movements in either share price yesterday - as should be the case. Insiders aren't allowed to act until the news is public.


Thanks clissold, while that does make me feel slightly better it raises more questions.

As a shareholder, should this not have been put to me for voting?

daveh
Lemon Quarter
Posts: 2157
Joined: November 4th, 2016, 11:06 am
Has thanked: 399 times
Been thanked: 794 times

Re: Barratt Developments | Redrow merger

#645285

Postby daveh » February 7th, 2024, 10:53 am

elephanthunt11 wrote:
clissold345 wrote:As far as I can see, you didn't miss anything. There were no unusual movements in either share price yesterday - as should be the case. Insiders aren't allowed to act until the news is public.


Thanks clissold, while that does make me feel slightly better it raises more questions.

As a shareholder, should this not have been put to me for voting?


It will be at a general meeting of both companies and both companies shareholders need to approve the takeover. The details are in the RNS.

Barratt Shareholder approval of the Combination

· The Combination constitutes a Class 1 transaction for Barratt for the purposes of the Listing Rules. Accordingly, the Combination will be conditional on, amongst other things, the approval of Barratt Shareholders at the Barratt General Meeting.



Redrow Recommendation

· The Redrow Directors, who have been so advised by Barclays and Peel Hunt as to the financial terms of the Combination, consider the terms of the Combination to be fair and reasonable. Peel Hunt is providing independent financial advice to the Redrow Directors for the purposes of Rule 3 of the Takeover Code. In providing their advice to the Redrow Directors, Barclays and Peel Hunt have taken into account the commercial assessments of the Redrow Directors.

· Accordingly, the Redrow Directors intend to recommend unanimously that Redrow Shareholders vote in favour of both the Scheme at the Court Meeting and the resolutions to be proposed at the Redrow General Meeting, as those Redrow Directors who hold Redrow Shares have irrevocably undertaken to do in respect of their own beneficial holdings of 161,913 Redrow Shares, representing, in aggregate, approximately 0.049 per cent. of the issued ordinary share capital of Redrow in issue on 6 February 2024 (being the last Business Day prior to the date of this announcement).



Barratt Recommendation

· The Barratt Directors consider the terms of the Combination to be in the best interests of Barratt and Barratt Shareholders as a whole. Accordingly, the Barratt Directors intend to recommend unanimously that Barratt Shareholders vote in favour of the Barratt Resolutions at the Barratt General Meeting, as those Barratt Directors who hold Barratt Shares have irrevocably undertaken to do in respect of their own beneficial holdings of 1,690,704 Barratt Shares, representing, in aggregate, approximately 0.173 per cent. of the issued ordinary share capital of Barratt in issue on 6 February 2024 (being the last Business Day prior to the date of this announcement).

· The Barratt Directors have received financial advice from UBS and Morgan Stanley in relation to the Combination. In providing their advice to the Barratt Directors, UBS and Morgan Stanley have taken into account the commercial assessments of the Barratt Directors.

Dod101
The full Lemon
Posts: 16603
Joined: October 10th, 2017, 11:33 am
Has thanked: 4338 times
Been thanked: 7514 times

Re: Barratt Developments | Redrow merger

#645319

Postby Dod101 » February 7th, 2024, 12:08 pm

elephanthunt11 wrote:
clissold345 wrote:As far as I can see, you didn't miss anything. There were no unusual movements in either share price yesterday - as should be the case. Insiders aren't allowed to act until the news is public.


Thanks clissold, while that does make me feel slightly better it raises more questions.

As a shareholder, should this not have been put to me for voting?


This is just the announcement of the proposal for the merger. As has been said you will get the opportunity to vote in due course. Details in the RNS.

Dod

b0f77
Posts: 37
Joined: February 19th, 2017, 1:54 am
Has thanked: 34 times
Been thanked: 7 times

Re: Barratt Developments | Redrow merger

#645808

Postby b0f77 » February 9th, 2024, 9:25 am

You’re not alone. I have a long term small holding in BDEV. I’ve been rejigging my ISA to sell down some things like this and concentrate more into ITs. The idea being with ITs you have a manager on the case (for good or bad). I was just getting round to it and saw this news.


Return to “Company Analysis”

Who is online

Users browsing this forum: No registered users and 1 guest