Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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About 2/3rds. of the 60 working day period ( without complication ) for the FCA to consider change of control has now elapsed. Completion can then take place. ( RNS 19th. July )
Fortuitously, I did say so far - now the delayed sell.
With apparently just 2 sells shown ( so far ) no obvious reason for that small drop today, and on what might normally be considered an advantageous RNS at this stage.
It looks very much as though MXCP sold their remaining Castleton holding today, as picked up by Aphrodite on CTP.
More cash in the kitty! Sale of Castleton Tech shares.
"The majority of the proceeds ( of £2.25 m ) are intended to be used in order to fund an Employee Benefit Trust (the "EBT") which MXC is in the process of establishing. The purpose of the EBT will be to buy MXC shares in the market to be held to satisfy existing and future share incentivisation awards for the benefit of employees and certain directors. The remainder of the proceeds will be used in line with MXC's stated strategy of investing in technology companies."
It is my view that mxc and the events awaited has not yet sufficiently come to private investors notice. It may only be relatively few who have bought into expectations other than those who have followed the company and its investee companies. Or it might not appeal in view of it's history. I suspect that the next MXLG acquisition(s) will make greater impact than the first, when more comment can be made about the combination with SICL. But in any event, MXCP will be buying perhaps £2m. worth of shares in the market to hold for employees. I prefer to have built my holding now, and wait, rather than compete for shares one morning at a later date
More large trades going through again today.
Looks like someone is loading up ahead of the news!!
Other Ravenscroft clients perhaps or other funds watching what Ravenscroft are up to?
Either way something is about to blow.
I should be clear that I have made that presumption of future co-investment in MXLG, as that is what occurred last time. It is certainly their new model.
In any event, the question of availability of capital for future investment is not an issue.
The MXCP model ( not only the MXLG business ) has changed to one of a principle of co-investment, and to raising funds from the private sector. In the MXLG case LG does not need it, but MXCP wants their own funds matching within their 50%. More capital equals greater opportunity, in MXLG and other investments.
"The Company is continuing to progress a number of promising opportunities, an example of which is our recently announced joint venture with Liberty Global. This transaction marks an important step change in the MXC model, as co-investing in and advising third party funds brings us access to greater opportunities as well as returns"
"This joint venture with Liberty Global marks an important step change for MXC. Investing in and advising third party funds gives us access to a sufficient level of capital to grow a greater number of assets"
"Private equity remains hungry for opportunity in the sector and has the funds to deploy"
Private Investor Ravenscroft will now assist and have a say in that funding from the seat they bought in MxcUk., the transactional business that puts these things together.
Interesting read on Stephen Lansdown. His love for Guernsey and his hunger for more UK investment. If MXLG went for a bigger acquisition these guys could definitely be interested if they aren't already. http://citywire.co.uk/wealth-manager/news/stephen-lansdown-come-back-i-m-not-sure-i-ve-ever-been-away/a1057435
Old Article from last year. Hargreaves talks about Ravenscroft future goals. https://www.ftadviser.com/investments/2017/10/10/hargreaves-founder-vows-to-take-on-fund-giants
There is nothing priced into that 1.46 going forward, that is how it stands today - nothing for MXLG, Ravenscroft/GIF, and whatever other opportunities arise.
It may just be getting off the mark now. The board has made their views clear - anything under 1.46 will constitute real value, as opposed to speculation, particularly when viewed over a three period with regular newsflow, supported by a share buyback. The portfolio is where it is anyway, with the latest investment in Ide being bought at 50% discount to current price.
Some nice buys today. 2 x 2.5m - £67k.
There is another major point - not only are Ravenscroft aligning their interests more closely with MXCP, but in each case the interests of management are aligned to those of other shareholders by virtue of majority personal share ownership.
Agreed. Nearly a year on from last Novembers Liberty Global tie up. Expecting fireworks here shortly.
"The plan is for further acquisitions over a three-year period. SICL was the first one made and the plan is to acquire other businesses whereby we all have complementary services spread over the UK so that we can all work cohesively," she said.
Hemingbrough also said that any acquisition made by MXLG will be an IT company which it will then grow organically.
Since starting her role at the end of June, SICL has added 10 more to its headcount, and Hemingbrough stated that the firm will continue to grow staff over the next three years.
"Part of MXLG's plan is not just to acquire, but also to grow each business that they acquire, so it's organic as well as acquisitive," she said."
Excellent research guys that really is must read stuff.
Read Raleighs link and you will soon see the caliber of people who have just bought 25%of MXCUK.
Then read Jayfellas link to get an idea of where this is going ...
"Then it was acquired by MXLG and they got me in and told me about the plans they had in relation to their organic growth and acquisition trail and I got really excited. So I hung up my self-employed hat."
This is going to be much much bigger than any of us could have imagined.
What with Andy Parker joining the IDE board it shows the top level of people who are getting onboard this train.
This is going to go viral or whatever it is the young un's say.
GLUCK
"Then it was acquired by MXLG and they got me in and told me about the plans they had in relation to their organic growth and acquisition trail and I got really excited. So I hung up my self-employed hat."............. https://www.channelweb.co.uk/crn-uk/news/3037239/working-with-xmlg-too-good-an-opportunity-to-pass-up-says-sicls-new-exec
A little more background. Pula is the Lansdown family vehicle, invested in the GIF. Stephen Lansdown is chairman of Ravenscroft, owns almost 30% of it, and has invested the maximum amount allowed in their funds.
https://portfolio-adviser.com/ravenscroft-trio-reveal-uk-expansion-plans/
The GIF itself is known to have made at least four investments so far.
https://guernseypress.com/news/business/2018/06/01/public-backed-fund-makes-investments/
The benefits of MXCP extending their relationship beyond the GIF with Ravenscroft, through joint investment (including through inclusion of investee companies in their funds ) is self evident.
We are, as you know, waiting for permission and completion on that.
Whatever is added, MXLG appears to have started well with SICL, it being reported ( Megabuyte ) that it is balancing its solutions business against growth in managed services, and that this should drive revenues up 22% to £11m and net profit of £1.7-1.8m (up 80%) in the current year( 2018 )