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We seem to hovering between 595-605, will threre be special div.
Well we did get there briefly
A nice healthy move in the share price over the last couple of days. £7 is in sight............
Deal Done
In my opinion I do not believe that a special dividend will be paid post the sale, but the bid rumours will ramp up. Read an article recently that said the top three likely bidders were Lactalis, Lactalis and Lactalis. In reality I think other players would also be interested with the top players likely to be Muller, Arla and a more complex spin off of the spreads business to join with the Unilever segregated spreads business......... In reality who knows Dairy Crest may aquire to try to grow and stay independent (this route seems complex and unlikely tho)..... GLA
Phase 1 of the whey production is near completion. Phase 2 is to start early next year. SP will increase when whey is up and running not long now.
Bid rumours by whom?
Does anyone have an opinion whether a exceptional dividend payment could be on the cards after the sale?
Or more if the bid rumour starts for the rest of the business
The CMA are due to give there decision regarding the Sale to Muller Wiseman on Monday, I'm expecting to see a 10% increase in the SP.
Once the Dairy sale goes through this year, Dairy Crest is ripe for a takeover bid which I believe should be around the £7 mark. There are so many parties that could be interested in picking up Cathedral City and the new Whey operation, I do not believe it will take long for some offers to be tabled.
The Phase 1 decision is being left very late in the day, probably points towards it going to a Phase 2 decision timeline
The DCG share price slightly down today after a good May run. Like most I am looking forward to the announcement today. The balance of power has moved further away from processors / producers in recent years and the Muller ligic is if you control enough of it you can fight back, cost save and make 'some' money. buying Dairy Crest dairies is a logical step for Muller in their strategy to control the white stuff..... There will then be a renewed buzz around the Dairy Crest shares. GLA
dc are losing £160k a week doing the milk side this i cant comprehend just goes to show how bad the planning and management in charge are ,muller seems to make a profit
friday 12/6/15 date the uk monopolies board make there decision on takeover management only giving it 30% chance of a yes on friday but will get the vote on appeal if not then big redundancies i recently found out that dc been working with muller for the past 4years for this
dcg were told to put a high bid in for morrisons south east and now they lost the lidl,s from that area,muller are pulling the strings on this as they might want to shut chadwell depot and sell it off
recently DCG have lost large chunk of Morrison milk contract and yesterday they lost 50% of trade with LIDL, I hope Mullur Wisemen won't walk away from proposed takeover.
If DC were to sell for 2x turnover post the separation (Low debt and good profits) it would be worth c.£900m = £6.60 per share (+32% vs the current £5). This is c.15 times profit, so may be a little punchy, but the company does have a good opportunity to expand internationally and a new revenue stream coming onboard this year........Any views?
:)
It is highly likely hand over to muller wiseman will completed by November if not earlier.
Looks a screaming buy to me at this price. Cant see MMC rejecting the sale now Milk Production is a free for all and its price should fall helping the dairy processors like DC
Europe sends milk deal back: Dairy Crest’s £80 million sale of its loss-making dairies business to Müller U.K. has been referred back from Europe to the Competition and Markets Authority for review.
Dairy Crest Group Plc (DCG.L) Announced that it had agreed to sell the assets of its Dairies operations to Müller UK & Ireland Group ("Müller"). The transaction is conditional on the approval of the relevant competition authorities and following constructive talks with the European Commission, it has now been referred back to the UK for review by the Competition and Markets Authority ("CMA"). The company further stated that the transaction remains on track and, as previously announced, has received the approval of the company’s shareholders.
Once the competition commission has approved the sale of the Dairies division this share should be ripe for a takeover, possibly one to hold until then (Oct/Nov). It has a good dividend so should be too much risk involved if it doesn't come off?
Hold Dairy Crest on milk deal: Dairy Crest shares jumped 14% as investors cheered the potential sale of its milk business that would leave it with a stronger balance sheet, lower debts and higher profit margins. The dairy giant looks set to concentrate on cheese if the deal to sell its dairy business to Müller is completed, which is no bad thing for investors. Whatever happens, the chunky 5.2% prospective dividend yield on the shares looks likely to continue. The more startling figures are in the profits, where the dairies made losses of £4.4 million, while cheese churned out £16.8 million and spreads made £12.7 million of the £25 million total group operating profits. It is well known that the profit margins are wafer thin in the milk market. The only chance of survival in dairy milk production is scale and Dairy Crest has decided that investors’ money is better spent elsewhere, hence the sale. It looks like sound logic. Meanwhile, Dairy Crest is investing heavily in China. The company has agreed to sell powdered whey from its cheese plant in Cornwall to global markets through New Zealand group Fonterra, which will receive a commission. Dairy Crest is in turn spending £45 million on a new facility to remove minerals from the whey, which will be sold to Fonterra to make into baby milk formula. There are, of course, risks of the Müller deal not going through. It still needs to get the green light from the competition commission and this is not a given, as it would result in three milk producers becoming two. There is also a fear that, having handed over milk production to another company, the prices of the raw material could then be steadily increased, eating into Dairy Crest’s cheese margins. Nothing is confirmed yet so we wouldn’t buy here, while long term investors should hold on for that dividend income. Dairy Crest at 490p+63¾p Questor Says “Hold”.