Ediston (EPIC)

[Gerry557]

I'd expect that a management team can cope doing two things at once. Cash available might be more an issue rather than the amount of problems. I only know bits about Home and noticed that they had sold some properties recently although I don't know the context of where that puts them.

I think Skyship suggested TR property as a potential interested party too.

I don't know the time line between advanced talks and a decision but a couple of months and we might have some facts.

[richfool]

Well something must have been agreed and is being implemented with EPIC, as my broker has put the red exclamation marks on my holding of EPIC and removed the current total value figure from my portfolio, which is what they usually do when there is an event of that nature. I haven't seen any recent RNS's about it.

[richfool]

I see EPIC is up by 8% today, so it seems like something has been agreed, or at least there has been positive progress.

[scrumpyjack]

I see EPIC is up by 8% today, so it seems like something has been agreed, or at least there has been positive progress.

Yes, these things always leak! Anything north of 70p would be OK by me, but nearer asset value of 80p obviously better!

[richfool]

I see there is an active discussion here:
https://uk.advfn.com/stock-market/londo ... share-chat

And a Citywire article here:

https://uk.advfn.com/stock-market/londo ... share-chat

"REAL ESTATE
16 AUG, 2023
Giant US Reit poised to clinch EPIC, says report
Shares in Ediston Property leap on a report that $41bn US real estate investment trust Realty Income is nearing a premium-price acquisition of the retail park investor."

[scrumpyjack]

Ediston have issued an RNS confirming they are in talks to sell the whole property portfolio to a subsidiary of Realty

https://www.londonstockexchange.com/new ... n/16090329

So this would mean, I guess, that there won't be a takeover of the shares, but the company will get the cash and put itself into liquidation.

[airbus330]

....and we're left guessing what the return to shareholders might be. Guesstimates on various sites are from 70-86p. The lower end seems unlikely to garner shareholder support though.

[Gerry557]

Might be a lot less after paying out all that redundancy, perks and incentives.

I assume it will go to a vote eventually but I doubt I can sway enough to say no and the larger shareholders have already been sounded out and decided it's fate.

Might get a couple of divis thought.

Now where to put the cash from this.

[richfool]

I had been thinking of selling on the rumour/news so far! Put the proceeds into something similarly battered, a REIT like API, or more likely a broadly invested global IT.

I wouldn't be that far down on a SP of 70p.

[scrumpyjack]

Surprised they don't just buy the company - save £10m in stamp duty, I would have thought, though buying the properties gives a completely clean break.

[scrumpyjack]

....and we're left guessing what the return to shareholders might be. Guesstimates on various sites are from 70-86p. The lower end seems unlikely to garner shareholder support though.

It will be decided by the few big holders, one of whom has been selling at 65p

[brightncheerful]

Snag with NAV is that it's the sum of the individual values. Buyers of porfolios expect a discount.

[richfool]

Just in case things don't work out, I decided not to take any further risk, so I sold last week (70p) and redistributed the proceeds into several other holdings, including API, MRCH, MYI (for dividend income) and ATST (Alliance), whilst they were down. (The latter for broad based global growth).

[Gerry557]

The buyer might expect a discount but the seller wants a premium!

So I suppose it depends on what pressure the larger shareholders hold over a management that wasn't happy with the status quo.

Personally I would have been happy as is and continue to collect the dividends. With the option to keep buying on the discount as and when.

The management though wanted something different and think whatever course they are on is best (for themselves? ) for shareholders.

I suppose your buy in price and time held might also affect your prospective. If you are underwater and it's being forced sold I doubt you would be happy.

[SKYSHIP]

Today's news is a sell-out by the BoD; and really they should have rejected any offer at more than a 5% NAV discount, especially when you add back the value of the low coupon debt.

No point in holding on until December. IMO sell now and re-invest in EBOX for the 43% discount and secure 8.3% yield. If new to EBOX I strongly recommend over the weekend you view the recent Presentation:

https://stream.brrmedia.co.uk/broadcast ... 51b3710256

GLA...

[Gerry557]

Wow not what I was expecting at all.

They would have been better borrowing to buy back their own shares.

I might have to borrow from myself and buy something else now. SREI was my go too but I'll scan ebox

[Gerry557]

Anyone have a link to the circular - It says should be available on website

The Circular and the Notice of General Meeting will shortly be available for viewing on the Company's website at www.epic-reit.com.

I cant find it

[scrumpyjack]

https://www.investegate.co.uk/announcem ... on/7744669

Not a good deal but I guess the BOD could not drum up a better one.

The fact that TR Property has irrevocably accepted in respect of their 16.41% shareholding suggests it's all over.

72p around the end of the year - 10% discount on NAV

[SKYSHIP]

GERRY

SREI good too. I own 3 REITS: API, EBOX & SREI - average yield = 8.3% !

[richfool]

GERRY

SREI good too. I own 3 REITS: API, EBOX & SREI - average yield = 8.3% !

I used some of my proceeds from EPIC to top up API. I did think about WHR, but had some reservations (and had topped it up [and PHP] earlier in the year.