Take over news hits two retailers – The Reject Shop (ASX: TRS) & Trade Me (ASX: TME)
Stock
Trade Me (ASX: TME) $4.75 as at 20/11/2018
The Reject Shop (ASX: TRS) $2.43 as at 20/11/2018
Event
Two stocks that are set to outperform in today’s sell off are The Reject Shop (ASX: TRS) & Trade Me (ASX: TME) – both receiving takeover offers this morning.
The Reject Shop (ASX: TRS) has been hit with an on market offer at $2.70/share from Allensford with an undisclosed line to buy shares in the market at that price.
Shareholders have the ability to ‘accept’ the offer simply by selling the shares in the market, with Bell Potter acting as the broker, with the offer available until 7 January 2018 unless extended.
It seems an opportunistic bid, with The Reject Shop trading near decade lows, and the premium set at just 11% above the last traded price.
Allensford is wholly owned by a private company called Kin Group owned by rich-lister Raphael Geminder of Pact Group (ASX: PGH). TRS is currently ~70% below its 52-week high after tumbling since May.
The Reject Shop (ASX: TRS) Chart
Online marketplace Trade Me (ASX: TME) has also copped a takeover bid, this time off market from private equity company Apax.
At $NZ 6.40/share ($AUD 6.03), it represents a 27% premium to last night’s close.
Negotiations are in early stages here, but the company has provided Apax with due diligence.
The deal here is being done at a big premium to last traded, in a stock that has performed well over the past year – and even better in the recent volatility. TME is currently just 3.6% below its 52-week high.
Trade Me (ASX: TME) Chart
Market Matters Take/Outlook
