Tag Archives: WMF Übernhame

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…..