Today is the last day to attend the MásMóvil bid launched by KKR, Cinven and Providence at 22.5 euros per share. The victory of the buyers is certain, once the owners of Mayoral, the Domínguez de Gor family, have decided to sell their 8.25% stake. For the takeover to be effective, the funds need 50% of the capital plus one share, and they already have more than 38% insured, given the sale commitments of almost 30% with which they announced the operation. ACS will also sell its 2.63%, as published by CincoDías on Wednesday.
The fourth Spanish operator closed yesterday at 22.44 euros per share, which implies obtaining a return compared to the price paid by the funds of 0.27%. If investors buy at that price and go to the bid today, they will earn more than what 12-month deposits pay: 0.029% on average. The settlement of the offer will be executed in about two weeks.
The gain is short, but compared to what banks pay for deposits, which offer an average of 0.051% for up to two years, it is a succulent capital gain in record time. Of course, the investor must be attentive, since if he does not go to the takeover today and the circumstances do not exist for a forced sale to take place, the price may fall in the short term. Although, the new owners will remove the company from the Stock Market and must offer the price of the takeover bid at least six months after its exclusion is agreed at the shareholders’ meeting.
Investors, of course, will have to pay the purchase and sale commissions, both to acquire the securities and to sell in the takeover bid. Although there are various flat rates on the market. The Dutch broker DeGiro allows you to operate for a maximum of 10 euros, starting from 2.5 euros plus 0.05% of the amount. There are even platforms, like eToro, that do not charge anything.
The deadline to take advantage of the possible arbitration ends, in principle, today, although it is foreseeable there will be an opportunity to sell at the same price later. But the grace for the most intrepid investors is to pocket the money in an extremely short time. The amount that can be earned for an investment of one million euros at 22.44 euros per share is 2,700 euros without discounting any commissions.
The bad news is that floating capital (free float) that MasMóvil has left on the Stock Market is low and it is difficult to get hold of a significant number of shares at the mentioned price. A strong buy order can skyrocket the price and cause commissions to eat away at profitability.
On a smaller scale, it will be easier to execute the acquisition at attractive prices. An investment of 100,000 eros to buy securities at 22.44 euros, would yield a profit of 270 euros in about two weeks. In a one-year deposit, according to the average rate, the capital gains would remain at 29 euros. And you would have to keep the money there for 12 months.
The end is coming. The bid process by BME is nearing completion with its delisting from the Stock Market, but investors have room to earn a small percentage risk-free if they get it right. Six announced yesterday that it will exercise its right of forced sale (squeeze out) by the 4.38% that the manager of the Spanish markets does not control. It will do so at 32.98 euros per share, and yesterday BME closed at that price. But it traded at a low of 32.92 and most of the session was at 32.94 euros. This last price would allow to gain 0.121%. The operation will be executed on September 24, although the manager will cease trading at the close of September 14. Tuesday 15 will no longer be negotiated. The operation will mean that BME leaves the trading floor after it debuted in July 2006.