The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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.
And not forgetting that the Aegas offer will still include an element of their shares to allow those DLG holders who believe it can recover from here to benefit from that improvement.
It would be interesting to see how many of the DLG shareholders who bleat on about jam tomorrow will take up Aegas stock to share in that jam, or whether they will cash out and sell in the market.
On current form as of TODAY DLG are not worth 300p, there worth 212p.
So,. AEGAS are not going to pay a premium for something unless they know it can prosper without much change.
That’s the basics right.
Remember DLG has been on a downward trend since 2017, so the uptrend is going to require a lot of work.
Put it this way if SH dont accept the final offer, DLG will be trading well below the £2 mark
300p may grab my attention, 250-260 is insulting.
Yes, will be interesting to see how this plays out. A bit humiliating if he doesn’t have a final go.
I might write to Tim Cook and offer him £100,000 and a second hand Volvo for Apple Inc. That would make as much sense as the Ageas attempt at DLG. If you can’t get to a level that is serious, don’t bother.
"The comment was that the Ageas CEO would look “wet” if he didn’t come back for a final go at it. "
Reminds me a little of what happened at Unilever when the CEO went after the part of GSK that is now Haleon, shareholders baulked at the price and he stepped down shortly after.
On the other hand if he does launch a higher bid at that 2.50-2.60 level that is successful does he get plaudits for bagging DLG below the 2.75-3.00 mark first speculated as being the cost.
The Times commentary today speculating on a bid between 250p and 260p from Ageas. The comment was that the Ageas CEO would look “wet” if he didn’t come back for a final go at it. The update was described as “jam tomorrow”. Also commented on was the statement about the dividend payment not being a guarantee of “resumption”.
Mary sweetie the deadline is 5.00pm on Wednesday 27th so it won't be too late :-)
Ageas have to table a bid by 27th next Wed iirc.
An extension seems a waste of time unless a higher bid is tabled.
Guess we have only 3 trading days left as after close on Tues will be too late to change mind.
Not bad to get all the dirty laundry out in the open, now he’s able to make his stamp and look to recovery.
As much as we all want fat dividends I’m happy to wait a couple of years to see him turn this puppy around
"however management needs to change. The dividend reset is not great 4p final maybe 8p next year - seems to erode the reason many held this for so long."
Management has changed. More will no doubt follow as part of the cost cutting.
Insurance should be conservative and boring. PJs failure was in not keeping to this and we are only now seeing the full impact this has wrought.
I consider the dividend messaging to be part kitchen sinking and part a signal that management are returning to more conservative values. Expecting the dividend to return to similar rates so quickly probably a bit too hopeful.
Wouldn't surprise me if we start seeing more positivity from July onwards and more clarity around medium to long term plans for dividend, special dividends and share buybacks at the capital markets event planned for then.
"I don't believe that Ageas will walk away, as the actual results are just short of analyst consensus, so no big surprise to Ageas. The miss might well tempt them to make a third offer."
I think it is quite likely that Ageas had a good idea as to the sort of results DLG would be releasing today and why they went with the bid the way they did probably hoping that the board would open negotiations or commit to a price they would accept. I don't see DLG being anymore eager to agree to a takeover now than they would have 2 months ago, particularly with a new man in charge who probably feels the company has now turned the corner.
I sold out ages ago had not intention of buying back but had a punt on a takeover chance after pull back around £2.08 but results today sold out today.Would not like think where we would be if the bidder ends up walking .Already missed out 2 offers curry’s and RWI useless management there.
There are significant risks for a CEO attempting M&A because of the costs involved and the personal reputational damage associated with failure (Mike Coupe at Sainsbury's comes to mind when the Asda deal was blocked, he lost his job). I don't believe that Ageas will walk away, as the actual results are just short of analyst consensus, so no big surprise to Ageas. The miss might well tempt them to make a third offer. I don't think this saga is over yet, but there will be a limit placed on what Ageas can bid. It is also possible that another player will enter the field.
I'm not a DLG holder, but do check in on this board from time to time.
With regards Ageas coming back - you have to think that posting nearly £200 million 'loss' is pretty dire and as such, why on earth would or should Ageas come back with or raise their offer. If indeed, they do, it will be paltry and as such will undoubtedly be rejected by the BOD yet again - THINK HARD, as if they pull out or offer a paltry one that's rejected again, as some have said, the SP will indeed plummet!! I'm ALL for greed and making money where and how you can, but based on today's results, you have to think that the screen will be red again for many days coming.
Clearly just my thinking
The rns is positioned in a calamity favourable to a further final bid.
250p is the order of the day, and on that basis, shareholders should be glad to wash their hands, but not ecstatic or with glee
Would prefer no bid unless £3 north - would rather take chance witht e company from 150p level growing - however management needs to change. The dividend reset is not great 4p final maybe 8p next year - seems to erode the reason many held this for so long.
Now it truly is a binary outcome. Ageas' hand is much strengthened, as the synergies / cost cutting are better addressed in a larger group and DLG have made it clear they will be reducing staff in any case. The second bid now also makes some sense.....any further sweetening of the deal will look more digestible to shareholders in comparison , and as such I expect we will hear of a slightly better offer being made this coming Saturday. So no bid or final offer, 1.50 or 2.50.
Why so, effectively I have a free shareholding at no risk?
Freed funds available for elsewhere, including readding on a pullback and a simple way of monitoring. Allows to add risk and also instantly react to opportunities.
Can get you head around that? Really. It's what many professional fund managers do. A reporting method for consistency.
Try not to concern yourself too much about it is case it hurts your head.
Mx
I loved that RNS .
As a direct line share holder I loved it .
Because I love Mediocre, lacklustre , shambolic , dismal things.
I really do.
I don't think the results were that bad considering. This should be back in profit when the next set of results come in.
Need to bear in mind that the effect of the premium increases will not really start to arrive until 2024. Interim results will need to be carefully observed and I will wait for them.
150 million charge related to pricing and total write offs, I'd like to see any remaining board members gone, it's seems like they have just sat back and let a good company rot with incompetence leadership.
This is what is the big problem with UK stocks, the payout is high and growth is low.
I have debated this against oilies, banks all that underperform USA big.
This is a good move with a small dividend which will help cut costs and aid growth in business that is still struggling .
Go look at all insurers worldwide it’s 2-4.5% payout not silly 8%.
I’m happy with this payout. It’s better than zero payout
Same here HB,
There is still room for a return of special dividends when the claims or lack of show what their operating costs are. Hence why I posted earlier dividend history from 2012 onwards that showed low interims and finals but 3 years of two specials awards as profits were known. Then a follow on year that gave out one extra special dividend.
As a LT dividends collector I will most certainly not vote to have my capital sold off at its current loss.