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Haven't looked in here for a while, but as I said end of September I thought I would see if any news. I see the last RNS states an update before end of October. So looking forward to news next month. On top of this delivery services doing well with low oil price and problems in restaurants. Interesting to see what happens. All the best holders.
Interesting news from dominos uk today.
looking forward to this getting relisted to see where we are.
No idea on the timeframe here - but I can't see any advantages to anybody by dragging this out.
A Google of Dominium S.A told me that they had 70 stores / 280 employees and $21mm revenue in 2018 ... so similar size to DPP, although staff seems remarkably low to support 70 eat-in dining establishments !
If I'm not mistaken DPP have built the infrastructure to support a much larger franchise, so instantly going from 70 to 140 stores would certainly create economies of scale. Likewise if Dominium want to exit the "eat-in" dining model in favor of take-away / delivery in Post Covid world that also seems strategically sensible. Finally the enlarged portfolio would undoubtedly have some store overlap so that gives the chance to offload the worst performers. All in all, I do see many synergies ... guess the $64 question is at what price do we get taken over. But there is nothing we can do now until the dust settles.
3-9 months. I hope not. I was thinking by the end of September.
No idea. They must havebeen talking for some time prior to the announcement and have a strong outline of a deal, I cannot see that this would be monopolistic in any way for the polish authorities.
so, we're looking for 3 or 9 months waiting time for deal?? what's your opinion on timing
Hoping that the share price increases to 12p plus when this comes back to market. Unsure what happens longer term.
Interesting to see how the volume of outlets impacts the master franchise arrangements, i can see synergies elsewhere.
But RetiredBanker with respect if that was the intention then surely Dominion SA or rather it's PE shareholder would just make a cash bid for DPP, and subsequently delist. The premium offered (if any) would presumably go some way to paying off existing shareholders for the future synergies. Personally I think this would be a much cleaner transaction. Instead what is proposed has the potential to be more invidious. Under a classic reverse DPP will be buying Dominion SA by issuing its own shares. Now of course the million dollar question is the valuation of Dominion. What is implied is that Dominion shareholders will have the greater resulting holding, and DPP shareholders will be in the minority. To my mind that suggests that DPP will remain listed and existing shareholders will remain exposed to any potential synergies / upside. However, the key question goes back to the relative valuation. Crudely it looks like the two estates are roughly similar in size. Presumably Dominion's is more mature / profitable and hence why it will enjoy a (far) larger share of the relative valuation and why DPP shareholders will be in the minority. Now I don't want to cast aspersions against Dominion and its shareholder. The relative valuations will presumably have been blessed by a quasi independent advisor(s) and will ultimately have to be blessed by DPP shareholders. But this is far from a clean outcome.
As an aside (and at quick glance) I fail to fully understand the synergy logic. The RNS talks of rebranding the Dominion chain as Domino's. But a quick glance at their website suggests their estate is very much focused on eat in rather than take away. So very different to the Dominos model. Their may well be synergies from reduced competition, reducing HQ staff, procurement, marketing, reduced store overlap etc. But the two chains don't seem natural bedfellows. Unless the ultimate intention is to leverage the PE's financial fire power for significantly more investment. That is all to the good but may well result in further painful dilution for DPP shareholders. And by then they will be a minority force, without blocking rights.
Will be interesting to see the docs when they come out. I have no stake here myself. But after a long and painful association with DPP I remain intrigued how the story plays out. And obviously hope for a happy ending for its long suffering shareholders
I'd imagine if they only offer 10p it would be declined. They traded well during lockdown, so hopefully won't get sold on the cheap. I'd expect 15p at least. Profit turned next year update in late September should be good if we get that far.
I suspect that since this is a reverse takeover by an equity finance group we will be offered cash so that they can take 100% holding and possibly delist. Doubt we will be offered shares in the enlarged entity. Just got to hope that these people have purchased shares in the past 12mths and so are obliged to offer that price for the takeover, otherwise I believe 10p is best we can hope for
Really light on any £ detail.
Will this still be listed but will th existing shares being minority shareholders
Takeover then suspension