Special Situation “quicky” – KAS Bank (ISIN: NL0000362648) take-over
DISCLAIMER: This is not investment advice. Please do you own research !!!!!
Background:
Some readers of my blog might remember KAS Bank. I bought the stock in August 2012 and then sold it with a decent profit in MArch 2015 because I had not paid attention to the pension liabilities.
Looking at the stock chart, the decision to sell in 2015 was a good (and lucky) one:
The take over bid
The stock did little for more than 3 years and then dropped like a stone in 2018. KAS Bank had been losing clients to larger competitors before finally a few days ago , Credit Agricol’s custody subsidiary CACEIS made a bid at 12,75 EUR per share.
As the bid price was more than 100% above the last price, it is no surprise that both, the management and board of KAS bank supported the offer.
The transaction is supposed to close in the third quarter and is subject to final regulatory approval,
Personally, I see very little risk of the transaction not going through, I consider this as a done deal. The Dutch authorities will not block this, the price looks fair and CA clearly has the funds to execute.
After the announcement, the stock now settled at 12,30 EUR, leaving a updside of 45 cents or 3,67% for a time period of ~6-7 months.
For me this is an interesting opportunity to park some cash at a decent annualized interest rate.
One question might be is why the spread is so high. I think this is the result of the high premium paid bei CA, There is clearly always a risk that for some reason a deal fails. For my personal risk appetite I am however prepared to take this risk and therefore I allocate 5% of the portfolio into this special situation.
P.S.: Thanks to the friendly reader who mentioned this to me !!!!
value and opportunity 
Regulatory approval has been obtained, closing should now happen quickly:
https://www.kasbank.com/nl/over-ons/investor-relations/financi%C3%ABle-persberichten/2019/all-regulatory-approvals-for-caceis-and-kas-bank-obtained-to-close-the-offer/
I got paid today. Thanks for the idea, again. Keep them coming. 🙂
fyi
CREDIT AGRICOLE SA: Launch of recommended public offer in cash by CACEIS for all securities in KAS BANK
Acceptance Period
The Acceptance Period begins on 29 July 2019, at 09:00 hours CET and ends, subject to extension in accordance with Section 3.6 (Extension of the Acceptance Period) of the Offer Memorandum on 23 September 2019, at 17:40 hours CET.
https://www.globenewswire.com/news-release/2019/07/26/1892456/0/en/CREDIT-AGRICOLE-SA-Launch-of-recommended-public-offer-in-cash-by-CACEIS-for-all-securities-in-KAS-BANK.html
The spread still looks relatively large…
Guten Morgen, bin langjähriger stiller Leser hier. Tolle Seite mit vielen interessanten Anregungen. In Sachen Kas Bank würde ich gerne eine Research übersenden und hier zur Verfügung stellen, wenn Interesse besteht.
Grüße
SAM
Thanks for your post.
I would like to know your opinion about the Innogy takeover.
I haven’t looked at this in Detail. Could you summarize it ?
E.ON will takeover Innogy in accordance with RWE (with a bunch of other deals between them). The price of the takeover is 38,40 and the tendered shares price right now is 37,43, 2,59% potential).
The takeover was accepted by Innogy and the shareholders. It’s is waiting to UE commission clearance (and other entities).
Closing of the takeover offer is expected not before mid-2019
Summary in https://www.eon.com/en/about-us/media/press-release/2018/eon-launches-takeover-offer-for-shares-in-innogy-se.html
Full information in https://www.energyfortomorrow.de
As a holder of Innogy stock I would like to know how likely it is that the EU will derail the Innogy takeover. In the last week, there have been several reports that this may happen.
Thanks for the interesting Special Sit opportunity. Do you see a major risk of the 80% threshold level? This might explain the relatively large spread?
In my experience there is little to Gain for “hold outs” in the netherlands.