There's nothing quite like a takeover bid to drive interest in a stock, and for existing shareholders, there is also the prospect of windfall gains if the price is right.
There has been a flurry of takeover bids recently, with targets ranging from small gold prospectors, such as Venus Metals Corporation Ltd (ASX: VMC), to major companies like logistics provider Qube Holdings Ltd (ASX: QUB).
And in the case of the latter, and fellow takeover target National Storage REIT (ASX: NSR), there's still the potential to make short-term gains, given each company's share price is still trading at a discount to the offer price.
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Qube trading at a decent discount
In the case of Qube, Macquarie Asset Management has launched a conditional bid for the company at $5.20 per share.
That was a significant premium to the $4.07 at which the company's shares were trading at the time of the bid.
And while the shares have consistently traded higher than levels before the bid, they are still only changing hands for $4.64, meaning canny investors could make a windfall gain – should the bid actually go through.
Keep in mind that it is still conditional on satisfactory due diligence and a unanimous recommendation from the Qube board.
The board has granted Macquarie a period of exclusive due diligence, having previously negotiated for a higher price from Macquarie, and said at the time the possible deal was made public that, in the absence of a better offer, they do expect to endorse the bid.
Interestingly, UniSuper, which is a significant shareholder in Qube, has increased its shareholding in the company from 5.25% to 9.95% since the potential takeover bid was announced.
National Storage also in play
In the case of National Storage, the company was forced to divulge in late November that it had been approached by Brookfield Property Group and GIC Investments about a potential takeover, priced at $2.86 a share. This followed an article in The Australian hinting at the possible deal.
Like the Qube bid, the National Storage takeover offer is at this stage non-binding and conditional, but investors once again could make gains if it were to go through.
The National Storage bid is priced at $2.86, minus the likely 6-cent dividend to be paid by the company, which compares with the current share price of $2.71.
That implies a much lower premium of just 3.3% for investors who buy in now; however, some might be betting that a higher offer is in the wings.
In the case of Venus Metals Corporation, that company's share price is actually trading higher than the 17-cent-per-share offer price from Queensland coal billionaire Chris Wallin's company QGold.
QGold's offer is an on-market offer, meaning the company is actively buying shares at the offer price; however, Venus stated in a recent ASX announcement that it appeared the company was buying shares at higher prices, between 18 cents and 19 cents, in recent sessions.
Venus said this week it was currently preparing a target's statement, which would be released to the ASX on December 8.
Venus shares closed Thursday's trading session at 20 cents, well above the on-market bid price.
