Homeserve (HSV)

[pje16]

RECOMMENDED CASH OFFER

for HomeServe plc ("HomeServe")
by Hestia Bidco Limited ("Bidco")
an indirect subsidiary of Brookfield Infrastructure funds

to be effected by means of a scheme of arrangement
under Part 26 of the UK Companies Act 2006

Summary

· The boards of Bidco and HomeServe are pleased to announce that they have reached agreement on the terms of a recommended cash offer to be made by Bidco to acquire the entire issued and to be issued share capital of HomeServe. The Acquisition is to be effected by means of a court-sanctioned scheme of arrangement under Part 26 of the Companies Act.

· Under the terms of the Acquisition, HomeServe Shareholders shall be entitled to receive

for each HomeServe Share 1,200 pence in cash

https://secure.ii.co.uk/webbroker2/rese ... SV.L&tab=3
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[Dod101]

I have never heard of Homeserve but from a quick look at their Annual Report it seems an odd company for a Brookfield fund to be investing in?

Dod

[pje16]

I hadn't either until in Shares magazine last October I read

"It is harder to understand why Homeserve (HSV) is down 18% in just over a month. Demand for its home emergency services won’t be affected by inflation, supply chains or interest rates, beyond the customer’s ability to afford its policies. Given they are not very expensive, one can only suggest its shares have suffered from investors selling indiscriminately."

which persuaded me to have a little dabble @£8.19
They have had several good mentions in that publication since then

[Dod101]

I hadn't either until in Shares magazine last October I read

"It is harder to understand why Homeserve (HSV) is down 18% in just over a month. Demand for its home emergency services won’t be affected by inflation, supply chains or interest rates, beyond the customer’s ability to afford its policies. Given they are not very expensive, one can only suggest its shares have suffered from investors selling indiscriminately."

which persuaded me to have a little dabble @£8.19
They have had several good mentions in that publication since then

Good for you. Great result. Good that that sort of thing happens occasionally; makes it all worth it.

Dod

[pje16]

A bit more light on this
from the April issue of Shares

On 21 April business services group Homeserve (HSV) announced it had entered talks with Brookfield Infrastructure in relation to a potential offer.
Brookfield Asset Management is one of the world’s largest alternative investment management companies with $688 billion of assets under management.
There are a number of factors which make HomeServe a natural target for private equity ownership
These include its inflation-protected, annuity like income streams. Specifically the defensive and recurring nature of its profits enable it to support higher levels of debt.
Brookfield now has until the close of business on 19 May 2022 to make a firm offer or walk away. The stock has gained 38% since Brookfield’s first approach.