Euronext: GFJ

Gagfah +22.74% over a 14-month holding period

Catalyst Type: Tender Offers

 

Gagfah was acquired by Deutsche Annington in a EUR 3.9B deal or EUR 18/share.

Shares in Gagfah would eventually be delisted on March 2015, with only 93.82% of the total shares available being tendered.

The remaining shareholders who had not tendered the shares were doing so in hopes of what was known as a ‘squeeze out’. A squeeze out occurs when a minority shareholder aims to force the company to purchase their shares, for above the buyout price just so the company can get the full 100% of the shareholdings.

We attempted this strategy at EUR 15.79/share, and whilst risky we managed to finally exit the position at EUR19.61/share, which was above the bid price. We do not usually attempt such moves, though in this case, the final pay off was worth the risk with a 22.74% pay off at the end of the holding period.

 

Our broker statement for this trade