Confused by low offer for a property company!

[stevensfo]

Having some experience with East Europe (mainly Poland) and having seen the economies booming, a few year ago I purchased a small holding in Globalworth Real Estate Investments (GWI). They own properties in Romania and Poland. They were doing very well and providing juicy dividends until Covid.

They are currently trading at 7.30€, down from a peak of almost 10€, now with a discount of -15% and a dividend of 4.6%.

https://www.ii.co.uk/investment-trusts/ ... rd/LSE:GWI


Interactive Investor has informed us of a Corporate Notification. There is a takeover bid for the company, offering 7€ per share:

GLOBALWORTH REAL E ORD NPV
Event Type
Takeover
Description
Takeover Extension
Offer: Zakiono Enterprises Limited
Offer terms: EUR7.00 for each share
Pay date: upon receipt
Zakiono Enterprises Limited has extended its offer to purchase all the issued and outstanding shares in Globalworth Real Estate Investments Limited. Your options are:
OPTION 1: Do nothing (Default). You will keep your current holding if you do nothing.
OPTION 2: Accept the offer and receive EUR7.00 cash in exchange for each Globalworth Real Estate Investments Limited share held.

What I don't understand is how their offer can be lower than the current price. Who on earth would accept it? Or am I missing something?

Steve

[scrumpyjack]

Under Stock Exchange rules, when anyone, or a 'concert party', buy shares in a company that takes their holding to over 30% (I think that is the level), they have to make an offer to all shareholders.

It may be something like that that has triggered this offer.

[scrumpyjack]

This RNS explains what is happening

https://www.investegate.co.uk/globalwor ... 52232433C/

[stevensfo]

This RNS explains what is happening

https://www.investegate.co.uk/globalwor ... 52232433C/

Thanks so much. That was incredibly helpful.

As my instincts told me, I will hang onto them.


Steve