Special Situation “quicky” – KAS Bank (ISIN: NL0000362648) take-over
DISCLAIMER: This is not investment advice. Please do you own research !!!!!
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 !!!!