WMF AG catalyst – lessons learned: Good idea but weak execution

Now the expected catalyst at WMF has happened:

Current majority share holder Capvis sells as exected. The only surprise in my opnion is that the buyer is KKR, another (and maybe the most famous) PE investor:

KKR pays 47 EUR per ordenary share (+25% premium), but only the 3 month average of ~32 EUR for the pref shares-

So with my pref shares, I earned some money but lost out on the take over premium. And this although reader JM recommended the switch already in February.

So despite being a quite good deal for the portfolio (~+40%), the switch would have made a great dea out of this (+80%).

So hopefully lessons learned: Only the ordinary stocks will be enjoying the take over premium, not necessarily the pref shares.

For the time being, I will keep the pref shares to see if KKR changes it mind at some time. If they want to take the compeny private, they need also to buy the prefs…..


  • “Gemäß Übertragungsbeschluss erhalten die ausgeschiedenen Minderheitsaktionäre eine von der Gesellschaft zu zahlende Barabfindung i.H. von € 58,37 je auf den Inhaber lautende Stamm- und Vorzugsstückaktie der WMF AG (ISIN DE0007803009 (Stammaktie) und ISIN DE0007803033 (Vorzugsaktie)). Die Angemessenheit der Barabfindung wurde durch den vom Landgericht Stuttgart ausgewählten und bestellten sachverständigen Prüfer Baker Tilly Roelfs AG, Wirtschaftsprüfungsgesellschaft, Düsseldorf, geprüft und bestätigt.” Sppruchverfahren läuft.
    Something for evaluation of the sell decision.

  • interestingly, the pref shares now trade higher than 32 EUR, the common stocks are slightly below the offer.

  • In 2006 offer of capvis premium was 19,05/15,60=22%.

  • 47/32=47% premium for ordinary shares is huge. Do you know what is normal in such cases? I have read somewhere but don’t remember where ca. 25% could be expected for acquisitions.
    For me it depends on how long I am planning to hold and if the premium is <10% I will buy the ordinary shares, if dividends per share are roughly the same.

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