imutual.co.uk

Members,

As you will have most likely read - Greene King is subject to a takeover by a Hong Kong based investment fund. The share price boomed 50% yesterday. This now puts us into a profit position on the share but there is also some chatter suggesting another offer might come in to top the current one.

We have to decide our position taking into account:

- we agreed to move these long term shares on if the price was right and we'd incur no loss
- there is a decent enough premium on our purchase price (~17.5% before costs at the time of writing)
- there is a rumour of other interested parties that might counteroffer

What we have to decide upon is how much more of a premium could a counteroffer be and is it advantageous to hold and see what happens first or take what we have now without risking any purchase falling through?

Please share your thoughts and reasoning behind your vote.

Can you qualify what happens if a shareholder in Greene King does not sell and waits for any takeover to happen please. It might help people make a more informed decision.

Sounds like we stand to get at least the current market price, so what would be the advantage of selling now? And would that outweigh the potential upside of an improved offer?

blythburgh wrote: ↑

Tue Aug 20 2019 9:12am

Can you qualify what happens if a shareholder in Greene King does not sell and waits for any takeover to happen please. It might help people make a more informed decision.

I would if I knew but I don't

Sell and take your profit
If you don’t sell then say a Stop above your purchase price
To answer Richard’s question about ‘what’s the advantage to selling now?’
If the sale doesn’t happen then the price will collapse and even if it does happen there’s still a chance the price will drop
SELL!

Sorry, haven't done the homework for you by checking the Greene King offer details, but this might help...

garindan wrote: ↑

Tue Aug 20 2019 9:21am

blythburgh wrote: ↑

Tue Aug 20 2019 9:12am

Can you qualify what happens if a shareholder in Greene King does not sell and waits for any takeover to happen please. It might help people make a more informed decision.

I would if I knew but I don't

Look at the offer terms, which are probably publicly available. If they're buying for cash then eventually you get money for the shares, which would be similar to selling them into the market but you have to wait (selling to the market you'd usually receive slightly less but won't have to wait). Or the offer could be a stock swap or combination of the two, in which case some or all of the value in your Greene King shares would be exchanged for shares in the company that buys Greene King.

richard@imutual wrote: ↑

Tue Aug 20 2019 9:13am

Sounds like we stand to get at least the current market price, so what would be the advantage of selling now? And would that outweigh the potential upside of an improved offer?

The main advantage of selling now is locking in the higher price, if the offer isn't yet unconditional. If it isn't, the deal could fall apart and the price drop; but once unconditional that risk is much reduced.

The shares have been sold. Update later.

garindan wrote: ↑

Tue Aug 20 2019 4:23pm

The shares have been sold. Update later.

Double well done everyone.

First, well done for profit.

Second, well done for speed.