London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
""Regarding your email received 28 March, if the VLN has been fully repaid and Arqiva pays a dividend, D9 will receive its pro rata portion of that dividend (51.76% based on D9’s current economic interest). Following your email dated 30 March, we would like to clarify the mechanics around the VLN and dividends. You state that D9 cannot receive dividends before a corporate restructuring or IPO, but this is not correct: until the VLN has been repaid, D9 still has limited rights to Arqiva’s dividends. Specifically, if Arqiva pays dividends before October 2026, D9’s pro rata share must first be used to repay any outstanding accrued VLN interest; once the accrued interest has been repaid, D9 retains the remainder. If Arqiva pays dividends after October 2026, D9’s pro rata share must first be used to repay the total outstanding VLN amount (principal + accrued interest); once the total amount has been repaid, D9 receives the remainder. For context, as of 30 June 2023, the VLN consisted of £163m principal + £7m accrued interest.""
I have put it to them that this is semantics, pure and simple. The board this the only one that can agree to distributions, irrespective of VLN capital paid off, interest etc. Bizarre strategy to he held hostage like this as a dividend focused trust but there you go. Ive put it to Charlotte in the strongest terms: the only reasonanle strategy to Triple point is to agree a positions with other shareholders, and force a restructure.
If Arqiva pays a dividend? Carefully chosen words … Arqiva doesn’t pay a dividend but rather shifts operating profits into reserves, via subsidiaries and as far as I can gather has always done so. I can see why you would plumb for a restructure but DGI9 are presumably correct in their response - again carefully worded. The question that should have been asked, is why Arqiva operating profits are historically moved to reserves, how those reserve assets are held, and how DGI9 can/could unlock those profits to pay DGI9 shareholders.
As I wrote below, I suspect DGI9 thought it could unlock those profits, then found out to shareholder costs that it couldn’t - hence the cash flow problem for the DGI9 company. Why at this point is immaterial but equally explains why Arqiva as an asset will take longer to realise.
That realisation, will probably be an IPO leading to your restructure. The dancing around wording is not a good look and my half glass empty scenario.
On the plus side, £20 million should be landing in the DGI9 bank account next week adding a couple of pence to the DGI9 shareprice.
"carefully chosen words"
Too true. And I've no doubt the scenario is more complex that I am aware of / perhaps can even comprehend.
Which is why I employ 'experts' as managers of my assets!
I would have thought that the alleged Macquarie situation would be an ideal time to force the issue - bizarre that the IPO price is a secondary issue to the IPO itself as a restructure....
Your so called “managers” in the current market on average have around a 40-65% chance of beating their benchmarks and is why the sector is in decline … the managers in my view, would do better trading their benchmarks and not bothering with stock picking from the benchmarks…. While the advantage for folk like us, is picking up assets below NAV and hoping for a NAV sale of assets.
Outside of the above, with the time taken to find a good manager … might just as well take Buffet’s advice and pick an index on leverage.
51.76%? A majority shareholder, so how are D9 using their power? Zero evidence to date! Just no transparency about this investment and how or when it can be realised! Need to be a patient investor. Meantime IM and other fees etc pile up at small shareholders ‘ expense. No wonder the big boys have sold out! I just wish I had confidence in the DG9 board, if there are still directors there! Wishful thinking methinks.
This is exactly the transparency I want to see. What Dgi9 needs now is - pretty obviously - more buyers. Buyers will come in when there is clear and evidenced upside potential through cash distributions - i.e income from the portfolio NOT any analysis over 'NAV'. Unlocking the value in Arqiva about the largest potential catalyst to shareholder value, we're hearing NOTHING about it - how exactly do they imagine the shareprice to react and the market price to NAV to narrow.
“ 51.76%? A majority shareholder” … No .. refers to Economic interest. DGI9 is a 48% shareholder.
As I wrote below, when the £20 million deferred payment lands in the bank account, expect another few pence rise.
I’m expecting a 50p a share return with Arqiva IPO, up to 20p a share from performance targets from sold assets, but not banking on it, and whatever cash is left over from asset sales having paid off debt and management fees.
We will see.