John Laing Infrastructure Fund (JLIF) Bit of a bargain?

[formoverfunction]

HICL is up, so maybe some see the sell off as overdone.

[Gengulphus]

Meanwhile, in the light of the last two years' events, it's a wonder to me that anyone sees forward value in this sector.

People were saying the same sort of thing about the mining sector throughout 2015. Those who said it near the start of the year (or even better, in the second half of 2014) proved to be arguably right, those who said it towards the end of the year were very definitely wrong!

No, I've no real idea what stage this sector is at - just that sectors do get excessively depressed at times, and a sign that that that's happening to a sector is that everyone hates it! Unfortunately, that can also be a sign of real problems that are hitting everything in the sector - e.g. the banking sector in 2008-9.

Gengulphus

[richfool]

Surprise bid (well, to me at least) this morning offers the prospect of exiting with a hitherto unimagined capital gain, plus the chore of finding a replacement.

What exactly is going on with JLIF then? I note the SP is up 22p (18%) today.

[BrummieDave]

Surprise bid (well, to me at least) this morning offers the prospect of exiting with a hitherto unimagined capital gain, plus the chore of finding a replacement.

What exactly is going on with JLIF then? I note the SP is up 22p (18%) today.

A quick glance at a Reuters article this morning shows they are in talks with a consortium of funds about a possible cash buyout.

By incredible good fortune, and reflecting my post earlier in this thread, I bought both JLIN and HICL on Friday, solely for their income. So whilst it's good to see such a boost in value of both, HICL rising as it's in the same sector, it wasn't what I was looking for!

[richfool]

Ah, OK, found it:

https://www.investegate.co.uk/john-lain ... 05407168U/

Possible cash offer for John Laing Infrastructure Fund Limited ("JLIF" or the "Company")

The Board of JLIF and a consortium which comprises Dalmore Capital Limited (as manager for and on behalf of certain infrastructure funds) ("Dalmore") and Equitix Investment Management Limited (acting as manager of various funds) ("Equitix") (together the "Consortium") confirm they are engaged in discussions regarding a possible cash offer for the entire issued and to be issued share capital of JLIF (the "Possible Offer"), to be made by a new company to be jointly owned by funds managed or advised by Dalmore and Equitix. The Possible Offer is at a price of 142.5 pence per share in cash (the "Possible Offer Price") and also includes the payment of a dividend of up to 3.57 pence per share to JLIF shareholders prior to closing of the transaction (the "Pre-Closing Dividend"), (together with the 142.5 pence, the "Total Consideration").

Just have to assimilate it now.

[PinkDalek]

Surprise bid (well, to me at least) this morning offers the prospect of exiting with a hitherto unimagined capital gain, plus the chore of finding a replacement.

What exactly is going on with JLIF then? I note the SP is up 22p (18%) today.

16 July 2018 Possible cash offer for John Laing Infrastructure Fund Limited …

The Possible Offer is at a price of 142.5 pence per share in cash (the "Possible Offer Price") and also includes the payment of a dividend of up to 3.57 pence per share to JLIF shareholders prior to closing of the transaction (the "Pre-Closing Dividend"), (together with the 142.5 pence, the "Total Consideration"). ...:

https://www.londonstockexchange.com/exc ... 18709.html to read the entirety.

Edit: Clearly I was too slow!

[richfool]

And another source here:

https://uk.finance.yahoo.com/news/john- ... 26810.html

(Reuters) - John Laing Infrastructure Fund (JLIF.L) said on Monday it was in talks with a consortium of funds about a possible cash buyout offer that could value the company at 1.41 billion pounds.

JLIF, one of Britain's biggest listed investors in public infrastructure projects, said the potential offer is worth 142.5 pence per share and includes the payment of a dividend of up to 3.57 pence per share to JLIF shareholders.

The offer represents a premium of nearly 21 percent to JLIF's closing share price of 118.2 pence on Friday. The stock soared 19 percent to 140.4 pence in early trade in London.

JLIF's board has indicated to the consortium that it will back the offer, the company said.

[HYPMonkey]

So, just to be clear to everybody what we are talking about here is a possible total deal of 146.07 if we decide to take up the offer if its confirmed?

[mickeypops]

I took advantage of the spike and I sold my JLIF holding yesterday at 140.4, a significant profit, and immediately reinvested in John Laing Environmental Assets which has not experienced the sector hike seen elsewhere.

My IT portfolio is income focused and this gave me the chance to give it a bit of a boost.

[richfool]

The proposed takeover of JLIF is featured in the latest Investor's Chronicle.

An extract from their article entitled: "IT geek: there's value in infrastructure, but you're too late for JLIF" reads:

The proposed deal is arguably good for existing shareholders, particularly if they bought in before the share prices and premiums to NAV of infrastructure trusts started to fall last autumn.

However, the deal has not been confirmed, and if Dalmore and Equitix pull out or offer less after completing their due diligence it is likely that John Laing Infrastructure's share price and premium to NAV will fall.

So David Liddell, chief executive of online investment service IpsoFacto Investor, says: "If you are more cautious you could hedge your bets by selling half your holding in John Laing Infrastructure now, and holding on to the rest in the hope that the deal goes through. But otherwise I would hold on for the 142.5p plus 3.57p dividend, as you would make about 6p more per share than the current share price."

He also argues that even if the takeover does not go ahead John Laing Infrastructure would not necessarily fall back to its share price of 118.2p prior to the offer.

https://www.investorschronicle.co.uk/fu ... -for-jlif/

[BrummieDave]

And for anyone who hasn't read the thread on 'Tetragon Financial Group Trust' viewtopic.php?f=54&t=12827 Equitix is part of Tetragon.

[richfool]

A bit more info on the takeover:

https://www.theaic.co.uk/aic/news/cityw ... cheeky-bid

[BrummieDave]

Anyone get their cash yesterday?

I didn't.

The Corporate Action said it would be forthcoming on are soon after October 12th.

[FoolishRix]

I got the 142.5 but not the 3.57.
Am following that up with my broker.

[BrummieDave]

I got the 142.5 but not the 3.57.
Am following that up with my broker.

Yes, my 142.5 per share also landed today.

I think you've already received the 3.57 special dividend on Sept 27th.

[FoolishRix]

Ah...so I did...must pay more attention...thanks