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How to react to Computacenter Tender Offer
David 111
Posted: 27 January 2018 09:25:54(UTC)

Joined: 09/07/2010(UTC)
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My wife holds about £23k Computacenter shares in her SIPP and it has probably been just about her best holding.

Computacenter have announced a tender offer which needs to be reacted to by 6 Feb 2018.
The Company has announced proposals for a Tender Offer to purchase up to 8,547,008 Shares, representing 6.97% of the issued Share capital, for an aggregate purchase price of up to £100 million. Computacenter plc holders may elect to tender some or all of their Shares for repurchase by the Company, at a ‘Purchase Price’ to be determined. The Purchase Price will be the highest tender price per Share at which valid tenders are received in respect of an aggregate purchase price of up to £100 million. The Tender Offer is designed so that the Company pays the lowest price at which Shareholders are prepared to tender their Shares.

The Company is inviting Shareholders to tender (i.e. sell) some or all of their Shares at a minimum price which is not less than £11.70 or greater than £12.60 (in increments of 10p, e.g. £11.70, £11.80, £11.90, £12.00 etc.). Shareholders can elect to tender Shares for sale at different prices or at the Purchase Price but all Shares successfully tendered will be purchased at the Purchase Price.

Any Shares tendered at a price higher than the Purchase Price will not be purchased under the Tender Offer; Shares tendered at a lower price than the Purchase Price will be purchased and satisfied in full. However, if Tender elections are received for more than the aggregate purchase price of up to £100 million then Shareholders’ tenders at the eventual Purchase Price may be subject to scaling back. For your information at the close of business on 25 January 2018, the Shares had a price of £11.50.

I have not had to deal with such a tender offer before and am unsure what is the best approach to take. Any advice or observations would be very welcome.
1 user thanked David 111 for this post.
The Spanish Inquisition on 27/01/2018(UTC)
Redundant (Old Timer?)
Posted: 27 January 2018 11:33:20(UTC)

Joined: 07/01/2010(UTC)
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Your options are:

1. Do nothing - if you do not wish to sell any of the holding

2. Tender all or part at a price you are happy to receive, bearing in mind you will get the Purchase price and will have no dealing costs.

The only danger I see for individual shareholders with tenders is if there is an "over tender" so that scaling back occurs. This can leave the individual with a small rump which after dealing costs would not be not worth selling, a friend once end up with 5 shares! Thus unless your wife wants to sell out of her best holding all together, she may want to consider selling say half to lock in profit, buying back in later on a market correction, or simply investing the proceeds elsewhere.
3 users thanked Redundant (Old Timer?) for this post.
The Spanish Inquisition on 27/01/2018(UTC), David 111 on 27/01/2018(UTC), Guest on 27/01/2018(UTC)
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