One of the movements that stock market users are most aware of is the Public Acquisition Offers, better known as OPAS. But do you really know what these kinds of operations consist of? Well, it is simply an offer to acquire more than 25% of a company that is made public by accepting a series of conditions for the purchase of shares, normally at a price higher than the market price. It is very normal that these actions take place in the equity market around the world, and especially in the national one. There are already several listed companies who have gone through this relevant business process.
Every year one or more Public Acquisition Offers are carried out and that causes their prices to undergo large fluctuations in their prices. With volatility above normal that leads to deviations in the same trading session of up to 5% or even more virulent in some cases. To the point that these IPOs can help you open positions in the values that these movements develop. Or on the contrary, it helps you to abandon your positions in the equity markets. Depending on your reactions in the markets.
Spanish equities have not been very prolific in driving many IPOs in recent months. Or at least not like in previous years. But at the moment there has been one of them that affects one of the stock market proposals with the greatest predilection on the part of small and medium investors. We are referring to the Colonial real estate agency and in which a good part of the retailers have placed their eyes. Until a few years ago it was one of the more aggressive bets on the Spanish stock market. Where it was about making the savings profitable in a very short space of time. With eminently speculative operations and in a certain way of special risk due to their own characteristics.
Colonial controls almost 30%
One of the most relevant news that the equity market offers this week is that which has to do with Spanish real estate. Because in effect, Colonial has launched a Public Acquisition Offer (OPA) for the Socimi Axiare to 18,5 euros per share, valuing its competitor company at 1.462 million euros. In this way, the former controls almost 30% of Axiare's shares. In total, an offer of 1.041,5 million euros is made to 71,21% of its capital. This movement, therefore, is being observed by thousands and thousands of investors, some of them are current shareholders.
One of the keys to knowing how to interpret these very special movements lies in the fact that whether or not a fair price can be paid. In this sense, the Colonial real estate company admits that the offer price is considered a "fair price". But now the question is to check what investors think about this operation. This verdict will be more effective in the coming days when it will be possible to show what the evolution of its prices is. If the reaction materializes with rises or on the contrary, it is taken with falls and that can even be very violent as has happened in some other cases in previous exercises. We will have to wait a bit to see their reaction and what small and medium investors can do.
Reaction in the markets
As it could not be otherwise, it has not been the same response that the two leading companies in this business process have taken. With very different reactions in both cases, as expected in the markets. Because in effect, after the suspension of their listing, Colonial's shares have fallen by 0,2% up to trading at levels of 7,6 euros per share. While on the contrary, the reaction on the part of Axiare has been much more violent. Not surprisingly, it has skyrocketed by more than 14,3% until finally reaching very close to 19 euros per shares. With a great benefit for its shareholders who have seen how their investment portfolio has appreciated substantially in a few days. Or rather hours, although it was a movement that had already been speculated for a few days.
In this sense, the main beneficiary of this takeover bid in the Spanish continuous market has been the shareholders of the second company. That is to say, from Axiare, and that they will be enjoying the evolution of the company. Now it remains to be seen what will happen from now on because it is not ruled out that volatility reaches both parts of the process. With movements in one direction or the other. And where you can always take advantage of these fluctuations in prices. Even through credit sales if the evolution is finally negative for any of these companies.
OPA classified as hostile
In any case, this takeover bid is not being exempt from some kind of controversy. In the sense that the purchase of that shareholding package by the Catalan Socimi was a 'bad drink' for those responsible for Axiare, who came to classify the position of the Spanish real estate in Axiare as hostile. However, the reaction of the latter does not represent this way of thinking. But rather the opposite and it is something that in the end has ended up misleading more than a small and medium investor. As perhaps in your own case. In any case, it is awakening the interests of savers through a new takeover bid that is encouraging the equity markets once again.
Another of the collateral effects of this business movement is how this measure can affect the real estate sector. For the moment, the repercussions are minimal and with little relevance to this class of companies. Their price changes did not even reach levels of 1%. In this sense, it is not having any significance with respect to the other values of the sector. Largely represented by companies listed in secondary indices of Spanish equities. Although we will also have to wait for how the financial markets move in the coming days.
Greater potential of Axiare
Another of the implications of this corporate operation stems from the fact that this acquisition will add 1.710 million in value to its current portfolio. So that a total of 10.000 million in asset value is finally reached. To the point that it will be placed in second place in the sector and only surpassed by the economic figures it provides Merlin Properties. In any case, it represents a new adjustment in the national real estate sector. With a new restructuring of these companies. And even with an updated valuation with respect to the valuation in the financial markets.
Regarding this interpretation, it cannot be forgotten that it represents a premium per share of around 20% with respect to the previous positions of this value of equities. However, it can be affirmed that it is a proposal that moves very few titles every trading session. With very little liquidity and with the risk that their operations entail to get stuck in their positions. Or at least under a very tight sale price in which you would lose competitiveness when liquidating your operations. Something that, for example, does not happen with the securities that are included in the selective index of national equities.
Strategies for investors
One of the facets that you can ask yourself is how you can take advantage of these movements. Well, these are very specific operations that require a greater knowledge of the sector and their own values. On the other hand, it is necessary to act with special speed in the operations. Because volatility generates very fast movements and that in a few hours they can generate really high percentages. As a consequence of these reactions, the risks are very high. To the point that you can leave many euros for the way of purchases made.
You also have to assess the fact that if you look at longer terms, the strategy should be different from the current one. While it is also noteworthy that Colonial real estate shares were trading at less than five euros just a few years ago. Not surprisingly, it has appreciated very notably in recent years. It would not be strange, therefore, that important price corrections that could take the value to levels close to 6 euros per share. Your technical situation could get complicated from now on. Perhaps more than you can initially imagine.
Although one of the conclusions that can be obtained from this corporate movement is that Public Acquisition Offers (OPA) are back in fashion on the stock market. And very especially in a sector as important for Spanish equities as real estate. One of those that move the largest number of operations among small and medium investors.