The Lemon Fool

Finals - a pleasing 17.5% increase in the final dividend (12.4% for the year).

http://www.investegate.co.uk/hansteen-h ... 00098781Z/

More importantly, the company has announced the sale of its German and Dutch portfolios.

This is huge. 1.28bn euros. Half the company.

What are they going to do with the money? I await more detail with interest, but all they are saying right now is:

Following Completion and repayment of the debt secured against the German and Dutch portfolios (and satisfaction of other incurred costs) Hansteen intends to distribute a substantial portion of the net cash proceeds of the Transaction to its Shareholders.

https://www.investegate.co.uk/hansteen- ... lc%20Alert

So it appears the return of capital is to be via a purchase of shares at a premium. If one holds shares through a nominee platform, will they inform us of the offer? How will it work? [ I presume most of us are nominee shreholders?]

GB

Nominee providers will have to inform you, just like they usually do for other corporate actions where you have to make a choice, such as taking up a right issue for example.

How they do this depends on the provider, but do a search for corporate action and you'll get info from them. The biggest concern I'd have is the short time between announcement and closing, most providers are pretty slow, so keep an eye out on the relevant date.

gbalin wrote:https://www.investegate.co.uk/hansteen- ... lc%20Alert

So it appears the return of capital is to be via a purchase of shares at a premium. If one holds shares through a nominee platform, will they inform us of the offer? How will it work? [ I presume most of us are nominee shreholders?]

GB

I certainly hope so, and I am keeping a close eye on my broker's messages. A few more days without further information, and I shall ring them.

Frankly, I am having trouble getting my head around this tender offer and its consequences. Should I take up my 50% entitlement? Less? Try for more? What will be the share price and yield when the dust has settled?

I note the statement:

The Directors intend to tender their Individual Basic Entitlement (i.e. 1 in every 2 Ordinary Shares held) and the balance of their Ordinary Shares above their Individual Basic Entitlement which, to the extent that other Shareholders do not tender at least their Individual Basic Entitlement, will be satisfied proportionately to other excess applications.

This suggests to me that they regard 140p as a good price, and are happy to sell all their shares - if others don't take up the offer. Perhaps I just have to go on trust here.

77ss wrote:
Frankly, I am having trouble getting my head around this tender offer and its consequences. Should I take up my 50% entitlement? Less? Try for more? What will be the share price and yield when the dust has settled?

Basically what this is is a special dividend, bit rather than the usual way of giving us money and then letting us buy more shares with it, if we choose to drip, they are going the opposite way and saying "if you want the money, well but the shares from you", with the suggestion that if you prefer to hold the shares, you'll do nothing.

The return of capital should reduce the share price, but buying the shares back also reduces the quantity out there which increases the share price (think share buybacks) so I imagine the price will be roughly the same, but I imagine it'll drop back a bit afterwards because the 'buyback' is at an inflated price compared to the SP just before this announcement.

I will be selling my entitlement, then I'll think what to do with the cash, possibly buy a different company like LSR or another of the REITs that seem to be around today (which in itself is a sell signal to me, if everyone is scrambling to float their companies on the stock exchange suggests they want the cash out of them now...)

77ss wrote: Frankly, I am having trouble getting my head around this tender offer and its consequences. Should I take up my 50% entitlement? Less? Try for more? What will be the share price and yield when the dust has settled?

The announcement says what will happen to the SP:

If the maximum number of Ordinary Shares is purchased under the Tender Offer, as a result of this premium to the NAV per share and the costs associated with the Tender Offer (including the stamp duty), the Tender Offer will dilute the 30 June 2017 NAV per share of 133p by approximately 9p per share.

Meanwhile, I spoke to my nominee (iWeb) as they have nothing showing about this and its been a week since the announcement, they had nothing from their registrar, so I guess the registrar is being useless. They said will contact the registrar to chivvy them along a bit, so that's likely why your broker also doesn't know about this either.