Thanks for the great write-up! Could you explain why the minimum payment in a sqeeze-out is the BV of the company? I struggle to find info regarding potential pay-out in a Spruchwertverfahren. Thanks a lot
Once the SQ is triggered, the minimum price of the offer is the volume weighted average price of the past 3 months - which is what the acquirer will usually try to go for.
BV an all the other metrics come into play at a later stage, however usually the stock will trade way above the 3m VWAP once the squeeze out has been announced.
I feel like your thesis is very optimistic: it's easy to say they will do a take over at book value. If the shareholder is happy with his 89.6% and this scenario doesn't play out, nothing of it remains.
ok, it sounds like a "must" :-). Its not legally required from the start. The german takeover laws speaking only from the "angemessene Barabfindung". in the end the judge decide whats "angemessen". There are cases in which the judge ignore the 3M VWAP completely.
Don´t get me wrong, I´m a big friend of Squee-out-plays and and try to be a part of it since nearly 20 years. I´m also invested in LS.
Maybe it was me ;)
Certainly, it is not guaranteed that they will do a Squeeze-Out. As I wrote, I think even, if the company stays public, it is undervalued.
Thanks for the great write-up! Could you explain why the minimum payment in a sqeeze-out is the BV of the company? I struggle to find info regarding potential pay-out in a Spruchwertverfahren. Thanks a lot
Once the SQ is triggered, the minimum price of the offer is the volume weighted average price of the past 3 months - which is what the acquirer will usually try to go for.
BV an all the other metrics come into play at a later stage, however usually the stock will trade way above the 3m VWAP once the squeeze out has been announced.
Sorry that’s wrong. The 3M VWAP can be used as minimum price, but is not a „must“.
I never said it is a ‚must‘.
But why should the acquirer pay more than he/she LIS legally required to right from the start?
Look at past SO‘s and see how it worked there.
There is no VWAP in case of already delisted stocks, and that is what OTC (Freiverkehr) legally is.
Sebastian, are you also "cinche61" on MicroCap Club. Seems like a similar thesis was posted there. Thanks!
https://forums.microcapclub.com/topic/3586-special-situation-ls-invest-ifahm/
Seems the tender offer is trading at 4.6 EUR/share atm. The stock is delisted
I feel like your thesis is very optimistic: it's easy to say they will do a take over at book value. If the shareholder is happy with his 89.6% and this scenario doesn't play out, nothing of it remains.
ok, it sounds like a "must" :-). Its not legally required from the start. The german takeover laws speaking only from the "angemessene Barabfindung". in the end the judge decide whats "angemessen". There are cases in which the judge ignore the 3M VWAP completely.
Don´t get me wrong, I´m a big friend of Squee-out-plays and and try to be a part of it since nearly 20 years. I´m also invested in LS.
thanks for sharing it looks very interesting, which broker do you use? because on ibkr it is not exchangeable
I use comdirect. You need a broker which offers stocks on the Hamburg stock exchange
Here: https://open.substack.com/pub/treasurehunting/p/revisiting-my-most-viewed-stock-write?r=rsqyu&utm_campaign=post&utm_medium=web
Otherwise, they cannot do a Squeeze-Out, which is the only event that would unlock value.