Meggitt plc MGGT

This engineering firm specialises in parts for the aerospace industry like brakes, thermal systems and sensors.

As featured in edition #181 of Honey by Freetrade :honey_pot:

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Hmm, time to sell?

Why sell at £7.25 when the it’s being sold at £8.00 per share? Unless I’m missing something, or not understanding what happens during a takeover.

I picked this up at probably it’s lowest price last year and have an average price of 263p. No intention of selling before the date unless it goes higher.
Only regret was not buying more 3 weeks ago when added to Lgen instead.

What the heck is going on ? Sold the 10 I had still for £8.34 it’s over the £8.00 offered. Will have to wait and see if it was the right thing to do.

Meggitt got a preliminary proposal from Transdigm at 900p/share.

Great work to everyone holding on Freetrade.

I missed that

Oh, well. Maybe I’ll get back in tomorrow

Is it worth buying it at current price if it’s going up to £9? Seems easy money or am I missing something?

The risk is the deal isn’t approved by the UK government (this is the takeover of a defence company after all) so you’re running the risk of this not going through and the share price falling back to the 470p area.

Gotcha. So not a done deal then?

By no means a done deal. It is a very sensitive sector and one which arguably the UK punches above it’s weight in.

Although I’m holding I’m aware that it may get quashed and never make it to the finish line.

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I guess to make it worth while I’d have to go in large. But then makes a massive risk. Il probably stick to what I’m doing. But good luck all.

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Big sell off?

Transdigm removed their offer.

Took a look. Thanks for the information. I see though they will be taking the other offer of 800p a share? So at the moment it’s below that and should rise or so?

I think the comments above from Mobops and AJHY still apply. The discount to the proposed offer reflects the risk that the deal may not happen.

Aww well. I wonder who’s in deep :slight_smile: