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Perhaps someone is needing the cash to cover margin calls with market as they are. Cant see why its falling.
I don't think a bond that's 2 years away would be classed as an overhang at this stage. Come on Truth, please.
I'm not understanding why Esken's bond secured with Ldg shares would effect the share price. Obviously for Esken shareholders that's bad news because as things stand the money for the bond will have to be found elsewhere.
Why would it drag a share price where the NAV is around 20p based on founds in an account.
Ay caramba!
Some pretty hefty UT's appeared on here today, any ideas?
14p or so still a good discount to the NAV of around 20p, but when - oh, when? - will the SP get anywhere near that?
If only we knew......
The deal has almost been completed upwards moment ! Sp of 20p soonish
Yes. It struggled to move north during the large stock buy back. The fact is gently moving north now, means someone who already holds a good chunk of shares is stocking up on some more. That's my only thought. Hopefully a positive sign.
I don't think this can explode north at this point. However I see no reason why it cant realize a fair market value and has limited downside and good upside potential.
Lets wait a month and see. Even if they lose the bid I cant see this harming the price.
All the best Pat
Hi Biscotti,
I see the CTH deadline was extended again for both DBay and the Sheikh Holdings Consortium until 5pm on 27th June, clearly both parties still pursuing a deal with CTH that suits the successful bidder - if a firm offer is submitted - and CTH.
Appear to be some good buys here today and the SP edging back up, most curious.
Still watching......
Hi TF.
Ok, I have managed to find Esken's Report & Accounts for year ending Feb '21 and there are certainly 5 entries in different sections relating to LDG (formerly Eddie Stobart Logistics), the investments Esken have made in it, and the £53.1M placed into a 5-year exchangeable bond in May 2019. I also see they state the increase in net debt from FY2019 to FY2020 is due to the inclusion of £53.1m of bonds so guessing that is when it was written-down?
Ah, hang on, now I see something - LDG's list of significant shareholders (dated 31.12.20) lists Stobart Group Limited as holding 64,149,500 shares or 11.42% - that's the same total holding declared in Esken's Report so they are or were declared as a significant shareholder. I didn't make the connection before.
By God it's far too complicated for the likes of me to understand.
I think I'll leave it there but clearly more to LDG's present situation than simply having a giant pot of cash and the CTH investment, still curious exactly what it all means though.
Cheers, Pat.
You lost me at 'accounts'.
Why doesn't the 58m shareholding appear on LDG's list of significant shareholders?
Well another month of waiting. I guess the plus point is they are still keen on Caretech to keep discussions ongoing.
But just keeps us all in the dark for another month.
RNS on Caretech board.
On 29 April 2022, the PUSU Deadline was extended to 5.00pm on 30 May 2022, in accordance with Rule 2.6(c) of the Code.
Discussions between DBAY and CareTech are ongoing and, to allow further time for these discussions to continue to take place, DBAY has requested, and the Independent Directors and Panel on Takeovers and Mergers (the "Takeover Panel") have consented to, an extension to the PUSU Deadline.
Consequently, in accordance with Rule 2.6(a) of the Code, DBAY is required, by not later than 5.00pm on 27 June 2022, either to announce a firm intention to make an offer in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline may be extended by the Independent Directors with the consent of the Takeover Panel, at DBAY's request, in accordance with Rule 2.6(c) of the Code.
This announcement is not an announcement of a firm intention to make an offer under Rule 2.7 of the Code and there can be no certainty that a firm offer will be made. Further announcements will be made in due course as appropriate.
CareTech remains in an "Offer Period" as defined in the Code. Accordingly, the dealing disclosure requirements listed below will continue to apply.
This announcement is being made with the consent of DBAY.
Hi TF,
Your memory probably better than mine, plus your experience and depth of knowledge/understanding almost certainly greater.
If Esken still hold 60m shares in LDG that would make them a significant shareholder - about 10.70% - but this isn't showing in LDG's list of significant shareholders?
I can't see anything on Esken's results for YE 28.02.22 that mentions anything about LDG or a £53m bond either.
Maybe there's no longer any connection?
Or maybe - and more likely - I don't know where to look for such information :-)
Pat
Hi TF, long time no see here.
What does Esken have to do with this? Not sure what the connection is.
Still watching.....
Thanks eviking, didn't you recommend that to me once before?
I had a look but too rich for me, plus I have no funds available at present as already fully invested elsewhere, and all showing paper losses!! Same as everyone else I guess?
No longer invested here but still watching as just intrigued to see what happens. Sadistic or masochistic, only time will tell!
TRY GLEN PATSHARE
Now lots of buys and bid price back up to 13.10.
Nowt so strange as the stock market, I don't think I will ever understand it! Only difference between investing and playing the lottery is that investing costs a lot more than £2 a go!! And all investors think they are experts and know what they are doing, like me :-) only I don't, clearly judging by my results so far :-(
Should've left all my cash in the bank, at least it was only being eroded by increasing inflation and not just thrown at bad investment choices!!
Never mind, one day......
All of the above...?
Bloody frustrating.
Hi Leedsman.
Not a clue!. Seems odd, the SP was creeping upwards, bid price had gone from 13.20 to 13.50 in recent days, now back to 12.70? Market sentiment maybe? Apathy for this share, possibly? Inflation eroding the cash pot?
Maybe a lack of confidence in the possible offer for Caretech, maybe that won't happen?
Hmm.......
Thoughts anyone....?
Any news this morning
CareTech extended the deadline to 30th May so not long to wait, meanwhile the CTH SP has dropped back to around 703p; both DBay and Sheikh Holdings offering 750p but with differing conditions so who knows?
I'm not sure even if DBay beat Sheikh to the prize it will do anything for the LDG share price short-term, assuming they use LDG's cash pot to fund the deal, but will certainly affect the CTH SP on the run up to 30th May.
Although as recently discussed CTH announced an increased debt but then they appear to be asset-rich - a prime target for DBay to re-structure, turn around and sell on in a few years for a lot more than 750p a share, IMO.
That could be where the long-term growth for the LDG SP could come from maybe?
I'm no expert though, just thinking aloud.
Looks like we are getting close to Caretech judgement day.
Only thoughts being I have no idea if successful in bid or coming 2nd will do anything too favorable to share price.
Classic wait and see. All we can say as holders is "In Dbay we trust"!
Could be something brewing today, a fair bit of trading activity this morning, for this share at least, quite a few sizeable buys but also 2 x 900,000+ unknown trades - should be 'sells' judging by the price but who knows, could be 'buys' made off-market or something unusual? Not an expert so not sure.
Does anyone know anything at all?
Hi Bergcarls,
Same as you, I sold out a while back but still intrigued to see what might happen here. As you say and we already worked out, the asset value is about 20p so 13p SP is a bargain, but only if DBay/LDG do something truly impressive with the money.
See next post......
Hi Pat
I sold out a while back , but still intrigued with the share and its 20p per share value.
To be honest I haven't kept up to date and was only skimming over the Caretech RNS.
I think there will be profit here from 13p but not as much as there should be. Business is business for these guys. Will definitely keep my eye on what's happening though.
Good luck
Hi Bergcarls.
I'm guessing that increased net debt is a bad thing? Am I right in thinking that if either Sheikh Holdings or DBay make a formal offer for CTH @ 750p a share they would also inherit the net debt as part of the deal?
That doesn't sound like a good investment to me.
Just read Caretech rns of 3rd of May
Trading Update
This bit stood out
'"As at 31 March 2022, unaudited net debt was £278.3m compared with £258.7m at 30 September 2021. The increase in net debt is due to the deployment of strong operating cash flow of the business by investing in new organic developments and bolt-on acquisitions."