greencore tender offer

Discussion in 'Investments' started by wheeler dealer, 31 Dec 2018.

  1. wheeler dealer

    wheeler dealer Registered User

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    13
    Got details in post about tender offer ,what happens if i do not participate in this .If i choose to participate i presume it means i sell all my shares at £1.95 and am done with the greencore shares .If that is so it looks like a raw deal!!
     
  2. Deccla

    Deccla New Member

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    1
    I hold some greencore shares but have no idea what this all means or what my options are. What happens if you don't tender your shares.
     
  3. Cathy8

    Cathy8 New Member

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    2
    Today’s price is £1.85. So the tender price is only 10p higher. Not much of a premium??
     
  4. Brendan Burgess

    Brendan Burgess Founder

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    36,336
    Last edited: 6 Jan 2019
    When it was announced the share price was €1.66.

    So they announced a price of €1.95 , a premium of 17.5%, to make it worthwhile.

    You do not need to make a decision on this until late January and should not do so until then.
    upload_2019-1-4_14-23-51.png

    If the share price is in excess of €1.95 on the market, you should not opt for the tender as you would be better off selling them in the market.

    If the share price is a lot less than €1.95 you should probably apply to sell all your shares.

    If I understand it correctly, you will be entitled to sell 37% of your shares automatically. However you can apply to sell 100% of your shares and they will buy more than 37% from you if others do not take up their entitlements.

    So let's say on 20th January you have 100 shares and the share price is €1.50


    upload_2019-1-4_14-36-55.png

    So if you do not offer to sell your shares, the total value of your investment will fall.

    "But I think Greencore has a great future and I want to hold onto my shares!"
    You should still sell as many shares as you can at €1.95 and then buy them back in the market when they fall to €1.23

    What if the price in the market is close to the tender price, say €1.90?

    Then it's probably not worth doing. It will cost you about 1.5% to buy back in if that is what you intend doing.

    What about Capital Gains Tax?
    You will pay Capital Gains Tax on the difference between the proceeds received and the price you paid for them.

    If you buy them back again at €1.23, then you will have a new base price for future CGT calculations for the 37% of shares you bought.

    The first €1,000 of gains is exempt if you have not already used it.

    If you have realised Capital Losses on other shares or other property, you can set those losses against your gains.



    Brendan
     
    Last edited: 6 Jan 2019
  5. Cathy8

    Cathy8 New Member

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    2
    Are you saying that the share price will drop to £1.23 after the tender offer? Have I missed something?
     
  6. wheeler dealer

    wheeler dealer Registered User

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    13
    i taught that we can not speculate on share price
     
  7. Brendan Burgess

    Brendan Burgess Founder

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    36,336
    11 We don't discuss individual shares
    You won't find any messages suggesting investing in CRH or asking if AIB is a good investment. It is not the purpose of Askaboutmoney
    . We don't facilitate stock tipping or speculation about the future performance of individual shares. There are other forums which discuss individual shares such as The Investments and Markets Forum of boards.ie

    This guideline does not restrict you from discussing
    1) the mechanics of buying or selling shares in a flotation
    2) Rights issues - pricing and mechanics
     
  8. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    36,336
    Hi Cathy

    The example I gave was if the share price is €1.50 before the tender offer, then it should fall to €1.23 after the tender offer is completed, all other things being equal.

    If the share price is in excess of the tender price of €1.95 , then you should not tender any shares.

    Brendan