Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video 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.
At long last...! 👌
May I echo Ports view of how good it's been to part of the DX community. Learned a lot and continue to.
I intend to hold till the end, simply as I don't know what else to invest in. The only option for me would be to lock my 55% gain in a 'safe' savings account paying 4.5% .
The above said I'll still keep an eye on FTSE stocks. The AIM hasn't doesn't done much good for the old ticker!
Wishing all of you the best for the future and may I thank you all for putting up with me.
GLA
I'm not sure I deserve any credit lunchalot but thanks anyway.
What interested me in the RNS was that this HIG interest had been going on since June. DX deemed it in their interest to keep this from shareholders (certainly private investors) until a acceptable price was proposed or it may have been the requirement from HIG which I think it may have been. It's a lesson for us all that you never really know what is going on behind the scenes. This time it worked out well.
I was also interested in the reasons for acceptance. One reason given was that of liquidity like SCS and let's face it there are profitatble dividend paying companies that are not attractive to potential shareholders of whatever type. Simply put good figures can be virtually irrelavant to potential shareholder value if they don't create shareholder demand.
DX were also mindful of their reliance on the UK market amid the very uncertain macro-economic background which certainly underpins my investment strategy at the moment
I know we all have a different view of the final offer price. For me as a turnaround play it has far exceeded my expecations so
this investment ranks as a pretty good one for me.I'll be selling up the next few days as I've got other plans for the money rather than wait 3 months or so for the extra.
I'm not sure there's much to comment now so it's unlikely I'll post again. It's been good to be part of this community and the active debate of different views. I wish everyone well.
Well done Ports . credit where credit is due
.... just before the boom season.... R.I.P. DX. Amen
48.5 inc div
🎉
Thank you Portswigger. I appreciate your response. Best wishes to you with your investment.
Fair comment and apologies, nothing untoward was meant. You have explained your view better. I didn't think a protracted discussion on the intricancies of tax on here was very beneficial on here but perhaps it is and anyone can feel free to bring it up if they wish. It's just my view and others can decide absolutely.
A little bit ungracious. You observed that my post was vague, that you didn’t understand it, and that it didn’t really mean anything. I tried to explain why it was on point by reference to differential tax rates. The point is a simple (and for those with large holdings, material) one. I will leave it to others to decide whether it’s of much interest - although I appreciate it’s not of interest to you.
Many thanks Ports, Everton and Email for your invaluable opinions and comments.
As Ports and others have already alluded to, the fact that there haven't been any other interested parties illustrates that HIG have a clear run ahead and they intend to take all the time to carry out their DD or whatever to be fully satisfied of their investment.
Let's see what today brings, although I can't imagine it would be much different to the last few weeks. Hope I'm very wrong and the SP rockets. : )
Good luck and thank you for indulging me, again.
Tax is very complicated and i’m not sure lengthy discussion is of much interest here. We’ll all make our decision when the offer comes whatever it is.
E mail raises an interesting point. What is it that HIG can see and no one else can ? Perhaps they can but don’t want a bite at the cherry… perhaps it doesn't fit with their strategy… perhaps it not the right time. There could a multitude of reasons.perhaps they are not prepared to pay 45p plus. We probably will never know.
What about trade interest. Are the big parcels carriers going to be interested in a company with 1 to 2% marketshare. In parcels .All DX really have that is attractive is 25% to 30% market share of IDW. Thats the largest… there are competition rules etc.why would someone take that service on board if it alien to them or doesn’t fit with their strategy. Its not as simple as DX are on
Accelerated growth, profitable etc so its a no brainer. …Get your money out lads ?
HIG obviously have a strategy for DX and its quite clear the DX board are onboard with that strategy.
Given DX is on accelerated growth am very VERY puzzled by the lack of at least one competitor- so far... Very puzzled...What is it HIG sees that the others don't or can't see?... That's the big mystery
I should have added that in the absence of indexation, the time frame of the capital gain seems to me to be irrelevant. Unless I’ve missed something.
Is it vague? That certainly was not my intention when I posted it. An additional rate taxpayer will pay marginal dividend tax rate at 39.35% (a higher rate tax payer, at 33.75%). The same taxpayers will pay only 20% capital gains tax. It would seem odd to me for a substantial shareholder to opt for an income receipt, rather than a capital gain.
Of course, I accept that that distinction is immaterial for a shareholder with a very modest shareholding, or somebody who holds their shares within a tax efficient wrapper. But that wasn’t the target demographic for my post (or the cohort of shareholders to whom I was referring).
I’m so sorry if that wasn’t clearer.
Well the first paragraph is just opinion Deep which we are all entitled to. Who knows what the share would have done if the possible offer hadn't come in. In my opinion it would still be in the mid 30's, In the writers opinion it could have gone beyond 50p, in another it could have gone above 70p. I don't really see how a potential bid holds a share price back , I'd be interested if they qualified that...I would certainly learn something.
The second I simply don't understand and doesn't really mean anything in my view. It depends on the time frame of the capital gain, income level etc, etc. Individiual tax positions are different. It's a bit vague... a bit like some of my posts. !!
Any views on the 2 posts I came across?
Very interesting to read the opinions on this board. Also came across the following on ADVFN.
"This potential bid has actually held the shares back since it has capped the upside for the past couple of months - without that, and on the basis of the last strong update, the shares may well have gone beyond 50p by now."
 I cannot see why the company or its shareholders would agree to the offer price being reduced by the value of any dividend declared given that the dividend would be taxed at higher rates than the capital gain. Better to have no dividend and a 48.5 pence bid.
I don't know if Lloyd or Gatemore are negotiating anything. Their new letters of intent dated about a week ago say they are happy to accept 48.5p incl the 1p dividend. Due Diligence does take time particularly with a company like DX that is quite diverse in it's operations and infrastructure. I don't think there is anything remotely unusual here. We have an x - dividend date of the 17th of November, extension until the 20 November and an AGM on the 23rd November. It all looks quite cosy to me and I think we'll see the offer as i said at 47.5p. What's that corporate speak that drives me bonkers.... something about ducks in a row. !!
Why would HIG not make the formal offer yet? I think they know the value of the company is going up and can only go up so their no-offer-yet seems to make no sense.. Do they want DX or not?... If not they would have already walked off... . so, in my book, it is very unlikely this further extension/ delay to offer has anything to do with due diligence... I suspect Gatemore or Lloyd or both have reviewed their initial recommendation. Basically I think they want more and they are busily negotiating about it
Now is the right time for board to tell HIG to either up their offer over 60p or walk... Lloyd and Gatemore surely will realize the share will be above 50p after the Xmas boom.
Unsuprising RNS this morning, Two weeks or so further extension to a couple of days after the ex dividend date.. looking like a nicely choreographed announcement of a 47.5p offer.
Yes, Monday will be interesting and hopefully fruitful.
All chat on an additional bid seems to have vanished over the past few days so hopefully an understanding has been reached.
GLA
Lots of volume at close, let’s see what Monday brings! Enjoy your weekends
Should have read Nth not nenth degree!
Morning all
I echo the sentiments in relation to a rival bid and a further extension which incidentally is the general consensus on the ADVFN chat board too.
The other point of note, notwithstanding that it has been mooted to the nenth degree, is that £0.485 is a very low offer. However, with no other offers on the table and Gatemore and Lloyd's blessings, I cannot see the BOD refusing HIGs bid.
I also believe that £0.485 less any £0.01 in respect of the dividend is the minimum offer that Gatemore and Lloyd will accept and the BOD will recommend.
If I had other investments or even an iota of knowledge about the stock market I too would call it quits after payment of the dividend, Ports. But I'm going to hang on and hope that the final offer will be higher than 48.5 even though that is beyond wishful thinking and quite daft of me.
The question is what will I do once, and IF, DX Group is taken over?! : )
It's a fab position to be in particularly when only a year or ago there was such turmoil...
Do please keep those pearls coming. As I've said before, this BB is full of folk who extend respect and courtesy to novices like yours truly and I for one am very grateful for your benevolence.
Thank you & GLA.