value and opportunity

DISCLAIMER: This is not investment advice. The author might own, buy or sell shares without advance notice. The assumptions might be flawed or outright wrong. PLEASE DO YOUR OWN RESEARCH !!!!

Publishing research is a good way to get constructive feedback. With regard to my Norma Group Special situation post from earlier this day, one friendly person reminded me that there were at least two cases in Germany of big Buy back tenders in the past which had separable tender rights. I didn’t remember them, neither did Gemini.The two cases were:

Rhoen Klinikum (2014, Buy back tender size of 43,5%)

Rocket Internet (2022, buy back render size of ~¼)

In both cases, for every share you owned, you “only” got a “partial” tender right, i.e. for Rocket, every share got a right to tender only ¼ of a share. The Rocket internet case was very special, as Oliver Samwer “gifted” his tender rights to activist investor Elliott.

But the principle is clear: In order to tender more than your relative share, you had to buy additional tender rights. You canot just hope that someone doesn’t tender and you will then benefit.

So far, with Norma we don’t know if and how they will offer these separable rights, but this could change and require more active involvement especially when the tender rights are trading.

I just wanted to put this out. I have not sold or bought any shares because of this. I need to research the two cases and potential other cases more closely.

DISCLAIMER: This is not investment advice. The author might own, buy or sell shares without advance notice. The assumptions might be flawed or outright wrong. PLEASE DO YOUR OWN RESEARCH !!!!