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Hopefully draws more offers out which could be the boards tactic but we’ll see.
Some heavy volumes before/after close
Well Ports - there are a lot of things going on we have no access to - like the preliminaries to this offer testify... How do we know what exactly prompted HIC to make the offer right now?... It might well be because of preventing somebody's else move... I feel strongly it could not have been only HIC loitering with intent, surely what HIC has seen in DX has been widely seen by others - so likely more surprises are coming - good ones for us.
Well wouldn't 60p be nice e-mail. A take over premium of 65% or so as against the proposed 34% give or take. To achieve that it's a bidding war and I can't see it. I'm intigued by the series of proposals from HIC that have been rejected which suggests discussions have been going on for some time. Personally I already think the large shareholders will have known that HIC have been circling and will have made it known where they see a valuation they would accept. It's potentially an all cash offer which is advantageous to shareholders.It's a welcomed approach at the moment and it's unlilkey HIC would proceed with due dilligence or make an offer if they didn't think the institutional shareholders were on side.
Surprised to see another lesser in number sale execute at 42p .
2.30pm RNS takeover offer .
Lifted 2.28pm the close bid shown above 42.5p
I think the minimum offer should have been at least 60... I will not be surprised if we get another offer closer to it...
Yep. I understand the philosphical point but I'm long past caring about PE motivations. They do what they do.
I have no idea what I'll do with money from DX if it comes off. It all depends on what's going on at the time. But I won't be investing in companies that aren't making money, paying a dividend or can't service their debt comfortablity or have sufficient assets to cover liabilities.
Infact if there are no other bidders for DX I may even sell if it reaches a level close to 48P before an offer is even made. A loss of 1p to 1.5p or even 2p from 48.5p makes no real difference when the SP is passed my exit point already and it covers me if HIC withdraw at the death. There's alot of watching to be done in the next few weeks !
I think that pretty much sums up the attitude of the UK equity market portswigger. Take the cash and run! But I can see your point, the market does not value these companies very highly, and possibly never will, so the bird in the hand and all that
I ask what HIG are bringing to the table to try and work out how they are going to deliver value for themselves. DX is not capital or talent constrained. To me it really just comes down to attitude and time horizon. PE is prepared to take advantage of the short termism of the public market by taking the company out of the limelight for 5 years, letting it grow as a private company and then selling it on, probably back to the public markets. What will change about the company apart from it becomes private and may squeeze its costs a little harder? I guess its becoming a bit more philosophical now rather than specifically about DX.
Also, my larger conviction investments keep getting acquired and I'm struggling to find better opportunities. Out of curiosity portswigger what will you do with the cash from DX?
I'm not sure what HIG have to bring to the table Ragnarlothbrok. Do we need to be concerned what they bring to the table.It's not about what they bring to DX, it's about our return on our investment and that's a decision for every shareholder. They may be offering 48.5p a share which I think is a very fair price for the business with 100m in liabilities all things considered. The board aren't stupid they will have taken financial advice where necessary. In a best case scenario it may be undervaluing the business but who works on best case scenarios.?.Is the offer in the best interests of shareholders at this moment in time. If the offer is formalised I would be very suprised if it was rejected. An offer may not come again and then we are left hoping another bidder comes in because that is the only thing that mover share prices this much. Something about gift horses and mouths. !
I am holding by the way, who knows if other bidders appear.
I am so glad I hung on to DX. I bought in some years ago at around 80p and it did well to start churning out hundreds in divis too. After the price collapsed I bought more at 16p and at the 48p offer price I will be around 70% up so my patience has paid off. GLA.
Agreed. 30,40,50% in a year or two is great but 150, 200% over 5 years is much better. Companies in the UK are dropping like flies!! What exactly do HIG bring to the table? I certainly don't think that DX management need any turnaround or general business advice and the company is very well capitalised, even without taking on any debt.
This seems like one of those textbook examples where PE acquires a company with low levels of debt and strong cash flow and then guts it. With EBITDA of £70m and being debt free DX could borrow £100m, pay a huge dividend and retire that debt over a couple of years. Suggests to me that this deal is undervaluing the cash flow
Typical small PI's. Happy to be thrown a few crumbs, whilst PE steals their lunchbox...
Results are yet to show the benefits of the Tuffnells business, so PE have decided to move now before the market wakes up.
We should remember that this is not a firm offer just a possible offer and we should hope that a formal offer is made after due dilligence presumably. If there has been prior conversations between HIG and DX then HIG have been cirling for a while and then they really should be close to knowing all they need to know. The demise of Tuffnells and the potential benefits to DX has sped many things up including this offer in my view and against the economic uncertainty we face and DX's projections over the next couple of years I would be biting their hand off.
I too thought my network was playing silly buggers, PEng! : )
Couldn't be more delighted after all the trials and tribulations of the recent past that I've effectively made a 39% increase over 2 years & 10 months and by sheer luck.
Only a couple of days ago I speculated the SP of 40p, but little did I know that I had better powers than Mystic Meg.
Tbh, I really don't understand nor know what to do suffice that I will be following my gut as well as the palpable honesty of the knowledgeable folk on this board.
Think I'll stick a while longer rather than bailing immediately.
GLA and thank you. : )
Holders in the UK small cap market have been so badly battered you can hear the collective sigh of relief when an offer comes and in above everyone's entry price. Gatemore will be especially pleased given their likely single digit entry (I wonder if its enough for them). You can buy is at 42p, who would be selling at 15% below the offer price and why haven't the hedge funds stepped in yet to fill that gap?
Also, will be interesting to see those 1m share transactions unwind
I thought my phone was broken or on the wrong share when I seen 45! :)
Strong day for all, interested to know how you'll be playing this one? As it's been mentioned, a few other's believe it will flush out better value as well
Oops... bard =board.... though = through
The board are minded to recommend the offer and I for one agree. Interesting that there were a series of prior proposals that we know nothing about. The interesting thing is if this flushes out any other potential suitors and wouldn't we like that.Good news for DX shareholders and if this had it 40p for any other reason today I would have sold. But looks like I'll remain seated till October. !
I think it's a weak offer... but if the bard recommends it to members I can see it going though without problems
Are they listed on any exchange?
Possible offer is pretty weak, can't see this being a done deal. 33% premium to pre offer price and less than 4x EBITDA, despite growth prospects. Top 5 holders account for 50% alone, no mention of whether they will support this price. I thought DX could hit 50p on its own steam, within 18 months
And a fair result even for those that bought in earlier. Anyway, I've bailed out at 44p giving me an annual rate of return of 14% over two and a half years, which I'll take in this market. Good luck people.
Bit of good news instead
A fair result for us that bought in post-suspension.