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Monkie, where do you get the 700m MCap figure from? Not challenging you but interested. Hard to source decent info on this merger. There doesn't seem to be much interest in this merger. But do put me right.
Back into the 280s again today, this is heading to re-test the low.
Monkshood - I hope your right!? She’s not done much good so far. All know is she’s made some good personal money whilst moving companies! I remember when this share was £12/13 those were the days.
After merger his will have a potential MCap around 700M which moves into a possible future FTSE250 contender position. With a reasonable dividend it would also make the Divi Index. If management can get this to work then it could be reasonable mid term investment.
New senior mngt, new corporate structures, new(ish) business model after a two year integration programme, current uk political & economic backdrop.. Going out on a limb here investing here currently, bounce aside.
Being traded on a dead cat? Or some buying in for 6p divi? Unfortunately the longterm trend here is poor, and this dropped quickly a down to a new low, so I suspect that will get tested again in due course.
What the hell is happening hear?
Our new chair lady is seriously devaluing our investment - whose given her these instructions
Something seems significant about 300p level currently though while the moves go through, it had a dabble below yesterday and opening auction today was 290p, but straight back to 300? Maybe brokers got no idea whats going here either.
Does the combined entity jump into ftse 350 / 250?
Rns do nicely expose the shorts here, which ordinarily fca don't publish. Often short and long at same holder, lesson for me!
HL are flagging this as a bid situation. How can the SP be dropping?...
Fresh low at 298p intraday, iis selling it down to make this cheaper for a reason?
thanks, think I'm just going to wait and see what happens but agree the market doesn't seem overly impressed.
At least the NTG shareholders got an RNS from the company, but I have not seen an RNS from Redde. The NTG share price on Thursday before the announcement was 350p which meant that the Redde share price offer would have been 128.4p per share, but now NTG has fallen to 300 so Redde holders would get the equivalent of only 110.7p ( 300 x 0.3669 ). The market doesn't like it!
Coffee
Would be tricky working out the share price for the combined company.
The best guide is the combined market cap of both companies is approximately £750 mill.
I've been invested in this kind of all share companies merger before it tends to be unpredictable before,during and after the event.
The pre merger share allocations just reflects the current companies market caps.
I fully understand the current holder's frustrations, waiting and watching not an option for them.
D.
Next? Dilution for existing ntg holders (freebies which Redde holders then dump) while she's off chasing supposed synergies in differing businesses based in different parts of the country - RNS was strangely vague on those! Palmer-Baunack was not holding any here I guess so not too fussed, but I'd bet she has a few Redde tucked away direct or via pensions which have done well. Maybe she will divest Spanish ops for a few quid sooner or later.
Oh No. Not Northgate again! Sold out of these about 9 years ago at about £2.80, soon after the 10 for 1 share offer. Spanish market looked far to shaky. Since then, share price has gone nowhere. Redde's doubled in value since their share issue in May 2014, with much more generous dividends. Redde way undervalued, especially after the overreaction to losing 1 (albeit big) contract. No way will I be voting for this merger.
What happens now? I'm a redd shareholder and don't understand why Redd shares went up and Northgates down both by significant amounts. Can anybody advise when the new shares will go live and at what price. Thanks.
Ricky 317 Thanks for your time and explanation - I have invested in Northgate for nearly 30 years, so understand the business well and van sales are cyclical but always bounce back.
What I garnet relished wad that Reede Plc was the chairman’s previous company!!
She was involved with Stobarts and Did a similar thing with Auto-logic - She left Stobart after a confrontation with Tinkler with Esther a large payoff.
Thanks
And did FIL Investments buy 5.24% after hours today?
How does that work, without moving the price or will it show in a rise in the morning?
Transan - If you review the results it is in fact the sales element of Northgate that has gone "south". The rental aspect is actually well up and from experience in a fleet role is due to companies not wanting to spend money buying vehicles at the moment, but rather utilising short term rentals.
Once Brexit is sorted (if it ever does!!!) then I suspect this will revert back, as "whole life costs" are pretty good on the newer vehicles, especially if the government up the tax incentives towards EVs - which I suspect they will in the next budget. If Northgate focus on this market then I see the rentals decreasing and sales improving over the next 6-12 months.
All imho of course :)
Well that’s gone well hasn’t it? NOT
Thought she was going to divest he group of the Spanish van rental operation?
Reede - who the hell are they?
So Northgate's van rental CEO get chucked out!? And replaced by an unknown person with no rental experience.
Well the market has shown it feeling with a 10% drop Hell after all these years - do what going to happen nxt?
Or not, Doh!
She's in to divest Spain operation imo, with Crystal backing her via another increase in their holdings.
Interesting appointment - she had a turbulent and interesting time at Stobart - left with a big bundle£££££
We shall see!!!
Not convinced
Yes Dar, Positive news for us holders & Crystal Amber do seem pleased:
https://www.bloomberg.com/news/articles/2019-08-12/northgate-s-new-chairman-plans-review-of-van-rental-company
"Northgate said earlier in the day it appointed Palmer-Baunack, 55, to the position effective immediately. She is also executive chairman of BCA Marketplace Plc, the online used-car seller being acquired by TDR Capital. Palmer-Baunack previously helped lead a turnaround at accident management company Redde Plc and was chief executive officer of Universal Salvage Plc until the company was sold in 2007.
“I won’t comment on any potential disposals, acquisitions or restructurings, but this will be a business that will go forward under my chairmanship,” she said. Shares of Northgate were up 1.8% at 8:45 a.m. Tuesday in London, giving the company a market value of 446 million pounds ($538 million).
Crystal Amber Fund Ltd., the U.K. activist investor run by Richard Bernstein, said it welcomes Palmer-Baunack’s appointment. The investment firm, which owns about 7% of Northgate, called for a shareholder meeting earlier this year to oust the previous chairman in a move that led to his eventual resignation.
“The board has listened to its owners and brought in someone who has not only extensive experience in the automotive industry, but more importantly, an impressive track record of not being afraid to make business decisions and to deliver for shareholders,” Bernstein said in a statement.
Hi all,
On the 12th August NTG appointed a new chairman --- see below.
Northgate plc ("Northgate" or the "Group"), the leading specialist in light commercial vehicle hire in the UK, Spain and Ireland, today announces the appointment of Avril Palmer-Baunack as Non-Executive Chairman with immediate effect.
Avril has more than 25 years' experience in leading businesses in the automotive industry in a number of senior Executive and Non-Executive roles.
Correct level of experience plus a very good dividend in September, IMO the price should recover