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Morrisons (MRW)

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pje16
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Re: Morrisons (MRW)

#430530

Postby pje16 » July 26th, 2021, 5:31 pm

Just had a CA from Interactive Investor

MORRISON(W)SUPRMKT ORD GBP0.10
Event Type
Scheme of Arrangement
Description
Scheme of Arrangement

Effective date: 26th August 2021 (subject to change)
Scheme terms: GBP2.52 per share
Special dividend: GBP0.02 per share
Pay date: Within 14 days of the effective date

Wm Morrison Supermarkets PLC intends has announced a Scheme of Arrangement with Oppidum Bidco Limited (a newly formed company indirectly owned by funds managed or advised by affiliates of Fortress Investment Group, LLC).

Under the terms of the Scheme, holders will be issued with GBP2.52 in cash in exchange for each Wm Morrison Supermarkets PLC share held. In addition, there will be a special dividend paid to holders of GBP0.02 per share.

The cheme is subject to shareholder approval at a meeting due to be held on 16th August 2021, and is also subject to court approval, expected on 24th August 2021. All dates are indicative only and may be subject to change.

Payment will be issued to entitled shareholders upon receipt from the company. This is expected to be within 14 days of the effective date.

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Re: Morrisons (MRW)

#430872

Postby Dod101 » July 28th, 2021, 8:46 am

So Silchester has said it is not inclined to support the recommended bid. It holds around 15% of Morrison and could scupper the Scheme of Arrangement. That is quite amusing to me. Presumably the Directors did not consult their biggest shareholder before making the recommendation and would help to explain the shares being persistently above the recommended bid price.

I do not hold but no doubt that is intended to persuade a higher offer from someone.

Dod

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Re: Morrisons (MRW)

#430878

Postby Gerry557 » July 28th, 2021, 9:02 am

I think I'm with Silchester but I don't own 15%. I suppose they could add a decimal dot and a few zero's, maybe that will scare em!

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Re: Morrisons (MRW)

#430891

Postby simoan » July 28th, 2021, 9:42 am

Dod101 wrote:So Silchester has said it is not inclined to support the recommended bid. It holds around 15% of Morrison and could scupper the Scheme of Arrangement. That is quite amusing to me. Presumably the Directors did not consult their biggest shareholder before making the recommendation and would help to explain the shares being persistently above the recommended bid price.

I do not hold but no doubt that is intended to persuade a higher offer from someone.

Dod

I think they actually commented that they didn't see why management could not realise value to increase the share price themselves. That could possibly mean they are not interested in any bid for the company. It would not surprise me if a higher bid emerges, hence the premium to the current bid in the share price. However, I once held a share where the major shareholders refused a bid for the company and the share price collapsed, never to return to anywhere near the bid price. That also traded at a premium to the bid price for a fair while. I sold half my holding above the bid price and kept the rest. In hindsight, that was a big mistake but I had no idea the major shareholders would refuse what now looks an incredily generous bid for the company. You pays yer money...

All the best, Si

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Re: Morrisons (MRW)

#430893

Postby Dod101 » July 28th, 2021, 9:46 am

simoan wrote:
Dod101 wrote:So Silchester has said it is not inclined to support the recommended bid. It holds around 15% of Morrison and could scupper the Scheme of Arrangement. That is quite amusing to me. Presumably the Directors did not consult their biggest shareholder before making the recommendation and would help to explain the shares being persistently above the recommended bid price.

I do not hold but no doubt that is intended to persuade a higher offer from someone.

Dod

I think they actually commented that they didn't see why management could not realise value to increase the share price themselves. That could possibly mean they are not interested in any bid for the company. It would not surprise me if a higher bid emerges, hence the premium to the current bid in the share price. However, I once held a share where the major shareholders refused a bid for the company and the share price collapsed, never to return to anywhere near the bid price. You pays yer money...

All the best, Si


Yes that is what the report tells us. I think the suspicion is that the Directors and CEO were altogether too hasty in accepting the bid, based on the fact that the CEO in particular will benefit hugely from the bid as it stands and of course that the share price has been nowhere near the bid level for a long while. This seems the easy way out, especially when they were all guaranteed to keep their jobs!

Dod

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Re: Morrisons (MRW)

#430900

Postby Bouleversee » July 28th, 2021, 10:27 am

Silchester also objected to the Cobham t/o but that didn't stop it going through. I was against that as well. I am going to vote against it but that won't stop it going through either and there will be plenty who bought when the price was low who will vote for it. Am just hoping that the company who made the first offer will increase their bid substantially.

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Re: Morrisons (MRW)

#432885

Postby pje16 » August 6th, 2021, 12:21 pm

From behind a secured news post on Interactive investor
================================================================================================================================
(Alliance News) - Wm Morrison Supermarkets PLC on Friday said it has agreed to an increased takeover offer from a consortium led by Softbank Group Corp-owned Fortress Investment Group LLC.

Under the latest offer, shareholders will receive 272 pence for each Morrisons share they own, valuing the supermarket chain at GBP6.7 billion. The offer comprises of a 270p cash payment from the consortium and a 2p special dividend.

The latest tilt is a 7% premium to the previous Fortress offer of 254p, which included 252p in cash per share, plus the 2p dividend. This valued Morrisons at GBP6.3 billion.
=====================================
If you have an account this is the link
https://www.ii.co.uk/secure/my-news-fee ... 5580338000

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Re: Morrisons (MRW)

#432896

Postby Dod101 » August 6th, 2021, 1:07 pm

There is now an RNS on the Morrison website with the increased offer from Fortress, once again recommended by the Directors who are now looking a little incompetent at best I would have thought. Why did they recommend the first offer from the same party so quickly? Might there not be yet another bid?

Dod

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Re: Morrisons (MRW)

#432924

Postby Breelander » August 6th, 2021, 2:55 pm

Fortress Inv Grp UK
Recommended increased cash offer for WM Morrison
https://www.investegate.co.uk/fortress- ... 08238656H/

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Re: Morrisons (MRW)

#432954

Postby Bouleversee » August 6th, 2021, 4:23 pm

Does that mean that they know that CD&R (the first offeror) have no intention of making an increased offer before 9 August? If not, that recommendation (which is all it can be) seems like a dereliction of duty. The Board must be ultra keen to make the Fortress contingent the winners, possibly because they would keep their jobs if so. Maybe CD&R weren't so keen to have them. I'm still hoping that the latter will come up with an even better offer since I still won't be getting my money back at the revised Fortress offer price though I would be at the current market price. What does Mr Market know that we don't?

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Re: Morrisons (MRW)

#432955

Postby pje16 » August 6th, 2021, 4:27 pm

Bouleversee wrote:What does Mr Market know that we don't?

Current price is 278.9p
so still above the offer

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Re: Morrisons (MRW)

#433055

Postby Dod101 » August 7th, 2021, 8:01 am

I do not think Mr market knows anything more but it seems to think that it is likely that there will be yet another offer, making the directors look even more silly and incompetent.

Dod

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Re: Morrisons (MRW)

#433065

Postby Arborbridge » August 7th, 2021, 8:57 am

It's a shame, but Mrs Arb will still be 20% down on her investment, even at yesterday's price.

I hate the feeling that we are being screwed over by these sharks, as given time I'm sure the shareprice would recover of its own accord.

But what will be, will be - we are but pawns in their game and it's the risk we take.

Arb.

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Re: Morrisons (MRW)

#433073

Postby Dod101 » August 7th, 2021, 9:57 am

You should have paid attention Arb. Long ago I said that the supermarkets were a pretty hopeless investment! It is though quite remarkable that even at the new offer price your wife is still under water.

Just done my valuation for this week across my portfolio and it is comfortably at its highest ever valuation., Most should be in the same position I should imagine because there has been a very wide uplift in prices in these last few weeks.

Dod

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Re: Morrisons (MRW)

#433085

Postby Gerry557 » August 7th, 2021, 11:01 am

Arborbridge wrote:It's a shame, but Mrs Arb will still be 20% down on her investment, even at yesterday's price.

I hate the feeling that we are being screwed over by these sharks, as given time I'm sure the shareprice would recover of its own accord.

But what will be, will be - we are but pawns in their game and it's the risk we take.

Arb.


Yes it's disappointing when you get forced to sell below your buying point or just being forced to sell. If it's any consolation I'm voting against but doubt I will be moving the needle much unless there are more who feel like me. Fortunately I will be in profit but was trying to buy more before the deal surfaced.

The turnround seemed to be taking traction and without covid I was expecting specials to augment the dividend and produce an good yield. I suppose I should be looking at where the funds could be re-homed, as its looking like one way or another my shares are going away.

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Re: Morrisons (MRW)

#433092

Postby Bouleversee » August 7th, 2021, 11:39 am

I already have more uninvested cash than ever before because I don't know where to put it. Prices always seem to go the opposite way to what I expect after results are announced these days.

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Re: Morrisons (MRW)

#433094

Postby pje16 » August 7th, 2021, 11:46 am

[quote="Bouleversee"]I already have more uninvested cash than ever before because I don't know where to put it/quote]
I felt just the same this year about my ISA which is normally my own share choices
decided to do a Global Equity Fund (1st venture into that type of investment) and so far the results are quite pleasing
but having said that, most holdings are up in the past two months

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Re: Morrisons (MRW)

#433100

Postby Arborbridge » August 7th, 2021, 12:21 pm

Dod101 wrote:You should have paid attention Arb. Long ago I said that the supermarkets were a pretty hopeless investment! It is though quite remarkable that even at the new offer price your wife is still under water.

Just done my valuation for this week across my portfolio and it is comfortably at its highest ever valuation., Most should be in the same position I should imagine because there has been a very wide uplift in prices in these last few weeks.

Dod

<leg-pull mode>
But you said CSN was a pretty good investment.... and I'm 25% down on that :lol: And you said HSBC was too, and SSE - so good you sold it at one point. <end of>

Don't worry, I've been in the game since 1986 -I'm used to taking the rough with the smooth.
When HYPing came along, I quite naturally followed the usual guidelines, which includes diversity. The whole reason for that is based on the principle that it is imposssible to say which company or sector will do particularly well or badly - and naturally, I stuck to that.
Tesco was bought at a time when almost everyone on TMF agreed that it was a company which was pretty much a given for an investor and it later even had the backing of Warren Buffett. The same could be said for Sainsburys which I bought at an early stage. At that stage I doubt anyone would have said it was foolish to include them, any more than it would have looked foolish to include Lloyds.

Actually, I still own both companies and have no plans to sell. They haven't proved a great investment for the first ten years, but I can't predict the next ten years, and neither has yet triggered a valid reason for selling within the HYP framework.

HYP portfolios are designed to take the ups and downs and produce a moderately acceptable result: that's what it is doing. Trying to second guess what may happen isn't usually part of it.

PS my own HYP sold out of MRW a while back as it was over-exposed to retail. MrsArb's portfolio didn't simply because it was the only supermarket in the portfolio. It turns out, she has probably done better holding on and not selling compared with my main HYP.

Arb.

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Re: Morrisons (MRW)

#433104

Postby pje16 » August 7th, 2021, 12:23 pm

Arborbridge wrote:Don't worry, I've been in the game since 1986 -I'm used to taking the rough with the smooth.

About the same time as me
aaahhh the 80s lots of easy pickings with privatisations
If you see Sid .... :lol:

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Re: Morrisons (MRW)

#433105

Postby Gengulphus » August 7th, 2021, 12:28 pm

Arborbridge wrote:It's a shame, but Mrs Arb will still be 20% down on her investment, even at yesterday's price.

I'm a bit puzzled as to how she's managed that, as the highest MRW price I've managed to find with the aid of a long-term FT chart (edit: going back to late 1991) is an intraday high of 321.02p on May 8th, 2007. Yesterday's closing price of 278.8p is only 13.2% down on that. It's conceivable that I've missed a higher possible purchase price, of course, but it would be interesting to know what it was, and when it happened.

And someone who bought at that intraday high has already received a total of 130.59p in dividends per share since their purchase (assuming I've added them up correctly), so if they sold at yesterday's closing price, they'll have received a total of 409.39p for each 321.02p they invested, an overall profit of 27.5%. Over about 14.25 years, that annualises to about 1.72% per year (*), so they're definitely only very unimpressively up - but they're equally definitely up, not down!

(*) The rate of return will be a bit higher, due to the dividend cash having been received after shorter periods than 14.25 years, but not enough higher to alter my remarks above.

Gengulphus
Last edited by Gengulphus on August 7th, 2021, 12:33 pm, edited 1 time in total.


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