A clear sign of the 'vulture culture' that's permeating the property market, Conygar proposes offering one of its shares for every five of TAP's, with alternatives of a preference share option, or a 15p-a-share cash offer (which is 25 per cent below the current share price, and 68 per cent below TAP's last published net asset value).
Described as "a joke" by one insider, TAP has urged shareholders to "take no action" believing the offer materially undervalues the company. However, Conygar claims to have received irrevocable offers or letters of intent from 52.5 per cent of the register. This includes its own 29 per cent holding, which it built up following its purchase of a stake held by Jack Petchey's Treffick in January.
Fully-listed TAP suspended its dividend last month, which rattled its shareholders - it is, after all, an income fund. April's full-year results showed that its UK portfolio of secondary commercial property is valued at £193m, with an annual rent roll of £16m, but the company's net borrowings total £112m.
Mr Ware is also the chairman of Laxey's Terra Catalyst fund, another Aim stake-building vehicle originally set up to pursue 'smash and grab' takeovers of this nature, but which called the market a little too soon. At 46p, its shares are 54 per cent below the original list price, but, nevertheless, have nearly doubled since March.
Conygar, which is named after an eighteenth century folly in north Devon, has no debt and £32m of cash (equivalent to 77p-a-share).
