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Marwyn NAV leaps on BCA Marketplace bid

Marwyn NAV leaps on BCA Marketplace bid – BCA Marketplace announced yesterday that its board was aware of media speculation in relation to the company and confirmed that it was in advanced discussions with TDR Capital LLP regarding a possible all cash offer for the company.

The board of BCA had received a proposal from investment funds managed by TDR Capital LLP to acquire the entire issued share capital of BCA at a price of 243 pence per share in cash, valuing the entire issued share capital of BCA (excluding treasury shares) at approximately GBP1,906 million and representing a premium of approximately:

  • 29.5% to the volume-weighted average price of 187.7 pence per share for the 1 month ended 19 June 2019 (being the last trading day prior to this announcement); and
  • 25% to BCA’s closing share price of 195 pence per share on 19 June 2019 (being the last trading day prior to this announcement).

The Marwyn funds collectively hold 36,361,225 BCA ordinary shares, of which, as at the date of this announcement, 25,526,750 (representing 3.25% of BCA’s issue share capital (excluding treasury shares)) are attributable to Marwyn Value Investors’ ordinary shareholders and 2,235,326 (representing 0.28% of BCA’s issue share capital (excluding treasury shares)) are attributable to the realisation shareholders.

[The BCA share price at the end of May was 181p. So the bid would add £15.8m to the end May NAV or 23.5p per share by our reckoning. However, the bigger question would be, what would Marwyn do with such a huge influx of cash? – £62m in all. Despite the various schemes that the fund has employed over the years, the shares still trade at a substantial discount to NAV and this needs to be addressed. ]

MVI : Marwyn NAV leaps on BCA Marketplace bid

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