Stock Spirits (STCK)

[SalvorHardin]

There has been a takeover bid for Stock Spirits, a distiller which does business primarily in Poland, Czech Republic, Italy, Slovenia and Croatia. Shareholders have been recommended to accept the offer by the directors of Stock Spirits.

377p per share, which is a 41% premium to last night's closing price.

The bidder is "Sunray Investments Luxembourg" which according to the RNS is owned by funds managed by CVC Advisers.

CVC is a privately owned private equity firm which is best known (at least to me) for having owned a controlling stake in Formula 1 and for owning 27% of the UK Premiership Rugby. CVC is currently in the news as it is negotiating to buy 10% of Spanish football's top division.

https://www.investegate.co.uk/sunray-invests.-lux./rns/recommended-cash-offer-of-stock-spirits-group-plc/202108120700104235I/

https://www.stockspirits.com/investors/default.aspx

[kempiejon]

Thanks for highlighting this, I missed it in my morning check. I see the price now is 385p or so, above the 377p offered so perhaps there's a hope/knowledege of a counter? At this level I'm mulling over chopping it in rather than waiting until after Christmas to have it wash naturally, if a better offer shows I'll have missed out but I'll take my 40% to the bank.

[SalvorHardin]

Thanks for highlighting this, I missed it in my morning check. I see the price now is 385p or so, above the 377p offered so perhaps there's a hope/knowledege of a counter? At this level I'm mulling over chopping it in rather than waiting until after Christmas to have it wash naturally, if a better offer shows I'll have missed out but I'll take my 40% to the bank.

It wouldn't be a great surprise if there was another bid. Other private equity managers will be doing the numbers over the weekend and wondering if it's worth making a bid themselves.

Given that I bought these shares only two weeks ago, I can't really complain making almost 50%. Earlier today I sold half of my holding for 385.15p and I'll hold onto the rest for a while.

[kempiejon]

Given that I bought these shares only two weeks ago, I can't really complain making almost 50%. Earlier today I sold half of my holding for 385.15p and I'll hold onto the rest for a while.

Like you I'm a fairly recent owner and I did toy with selling half at the above offer price, I've also had a special dividend from them recently. I'll have a think over the weekend, it's in my SIPP so no problems with tax or using my allowance.

[simoan]

Given that I bought these shares only two weeks ago, I can't really complain making almost 50%. Earlier today I sold half of my holding for 385.15p and I'll hold onto the rest for a while.

Like you I'm a fairly recent owner and I did toy with selling half at the above offer price, I've also had a special dividend from them recently. I'll have a think over the weekend, it's in my SIPP so no problems with tax or using my allowance.

I've held STCK for a while now (average price was below £2) and it was a reasonably large holding in my SIPP. I sold all mine above the offer price, mainly as I'm currently chopping back stuff anyway and so happy to cash my chips in. I've never been particualrly happy with the low Return on Capital (just compare with Diageo!) but the margins and cashflow were more than decent enough to have kept me holding. It was a decent GARP share to hold with good defensive qualities. Now on an EV/EBITDA of 15.6x that was warm enough for me to exit, although I suspect there could be further to go given the FCF yield is still around 7% at the offer price. That's a very nice return in a low interest rate environment for anyone who can borrow 800m quid on the cheap.

All the best, Si