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Since the Pinewood part will remain listed, the market itself will tell us how much it's worth.
They would have to do some marketing to let people know it is now a Saas company (who just scored a new customer/contract) and no longer a car company.
THINK PINEWOOD HAS BEEN VALUED AROUND 10.3P
Some Points of interest, for entertainment purposes only.
Figures stated below are approx, but hope you get my points!...
According to Google Finance:
1- Lithia Motors share p INCREASED 250% in last 5 yrs. Even with all the doom/gloom.! They also give dividends !..
2- PDG share p has gone DOWN 10% in last 5 years. No dividends.
BUT GET THIS,
3- LITHIA MOTORS share p INCREASED a whopping 2331% since Dec 1996 to date. That's 23 times up.
4- PDG share p has increased a massive (being sarcastic) 9.8% since Dec 1996 to date. Why so Low !?.
Why has PDG done so rubbish, PDG share p should be 50p-100p by now surely. Not a measly 18p to 23p,
That's Chicken Feed.
I suppose the crunch line/the unknown for us mere mortals is,
How much will Pinewood be worth if the deal went ahead ?,
Ime assuming that's all we would own, plus our 16.7p / share if we don't get to own any Lithia shares as part of this deal.
if Pinewood is only worth pennies, then were not really gaining anything, but if its worth 20-25p plus, then were quids in.
Too many questions and not many answers so far.
I have been a long suffering shareholder in PDG for many years. My original holding was bought at 80 p OUCH! And even after a profit warning! I recall the shares as low as 2p (credit crunch time I think) and nearly phoned PDG to see if they were going bust. Like David, I have enjoyed limited successes, but many disappointments. Only by averaging down over the years have I managed to stick with this share. Incidentely, does Berman hold any shares?
My understanding is that we will receive a cash dividend of 16.5 pence per share (more or less the price pre bid) and then own shares in Pinewood, value to be determined.
Whilst I think this is not a bad outcome and allows Pinewood to perhaps push on price wise in a sector more attractive than flogging cars, I would be surprised if Hedin don't show there hand, after all Trevor Finn, despite making appalling judgements, does at least know the value of this business.
Hi, As always with PDG, share holders are kept in the dark, Only the managers know whats really going on and when etc, I've held PDG for many yrs now and been stung totally unexpectedly a lot, Back in the days when we got dividends from Pendragon (remember them?) it was ok, But no divs for many years, and for 30 yrs now the share price has mainly only gone sideways and that is ridiculous for that amount of time. The share price was around 17p back in 1993!. I was in my early 30,s then. Its crazy for the share price to be the same as that now, up until today that is. I've been stung several times with PDG shares going up, only to quickly drop right back, Hope this time something positive happens. The share holders need to know exactly and in simple terms what were dealing with. But as usual we get to know nowt until its too late, If this deal goes through, would existing share holders own shares in PDG or Lithia motors or both ? & What would the new market cap of the remaining part of PDG be ?. What would PDG,s new share price be?, Anyone got a crystal ball going cheap, i think i really need one this time around, hahah, good luck to all share holders in pdg
Hedin said they would only sell for 35p a share, just to block another bidder, now they will receive just 16.5p a share plus part of a new company, which if I am not wrong will have a court case hanging over it, so Hedin might sell their holding for less, or make another bid, will be interesting to see.
Ideally they'd split the software biz and list it separately on the Nasdaq, then we'd really be cooking on gas. Leave the rump car trading for LSE. Nothing to stop them doing that even if this deal isn't a goer, but the big upside of this offer is immediate big exposure to US dealer network. Either way the offer demonstrates a lot of credibility for their software.
Last year (2022) Pinewood had turnover of £25.4 with an Gross Profit of £22.7m and overheads of £11.7m of which £4.2m were amortisation (I presume that is the depreciation - the D in EBITDA). so not sure where earnings of £27m for the current year comes from.
It is possible that a SaS tech company would be valued more highly than a car dealer. The EBITDA of Pinewood is expected to be £27m with no pension liability and (I think) no borrowing) - does anyone know what a tech company would be valued at with the prospect of increased US business and this level of current earnings? Whatever the answer the market doesn't seem to be very impressed.
Why are there so many minor transactions?
Hi david, that is a very interesting point.
OK so we get the 16.7p special divi for the deal but if that leaves say 50% of the current business value surely the SP would drop to say 9p-10p . I guess long term that business could grow or declne the SP
So maybe we are looking at a total value of say 26p.
Can't see any timings for the deal or any vote can you.
If Hedin really want this business surely they would come back with a takeover deal of say 30p-35p now to stop this deal in it's tracks, and then maybe they could sell off parts they didn't want.
As i said in my last post, PDG only ever goes up when there are to talks, and here we are again!.
If if makes the shares go up in value its got to be good news, i like many lost out last time with Hedin withdrawing his offer, i was thinking it would go through but look what happened. if this does go through, do we get 16.7p per share and keep all existing shares?. but then we only hold a small part of the business now,so does that mean the share price will go down to match the value of the leftover part of PDG?. And what is that value, could it go down to say 5p?. or will it stay as it was 18p, why is life so complicated.
But other shareholders may want more so 51% may not be possible. If the bid fails presumably the price will drop back - if Hedin make an offer will rise! Decisions, decisions.
It seems Hedin will not be able to block this offer, it only needs 51% vote agreement to go through, it could push Hedin to come back with a higher bid,
I think it depends on the value of the offer compared to market cap.If over 75% then a vote is needed
The talk is, as its an offer for part of the company and not a take over offer, then only 50% approval my be needed. But I'm unsure. IMO the current offer is too low!
Does anyone know what percentage the BOD need to issue new shares? It is usually 75% which as Hedin have more than 25% means that the bid cannot go ahead without their support.
Will it go through? Back in Summer 2022 it seemed that Hedin had enough shares to block Lithia's offer of 29p. The current offer seems a bit less, though more complicated.
So it looks like we will retain the shares and then get a Special divi of 16.7p .
So if someone now buys these shares at 23p-24p they will get back 16.7p and still own the shares.
Just depends how long you /we will have to wait to see if it goes through.
Goodness where did this come from., I guess it was only a question of time before someone made an offer of some sorts.
But to me it looks like the BOD's of PDG have sort to get one over on Hedin as it's them that has blocked any other bid thinking they have total control.
Not sure Hedin will want to pay more, but it does give a kick up the ass to get the SP moving. Fair play to the Directors.
Feels vindicating to have this offer in hand, the value here did seem like a no brainer.
On first read seems a bit complicated rather than a simple share buyout but can see why they want a separation of the software biz with all that growth potential. Still can't see the deal in this form going ahead because still more value to be unlocked here imo. Either way will flush out any other prospective bidders, now or never for them.
They won't happy with it, that's for sure.
I on the other hand like that this forces their hand now, put up a bid or lose the crown jewels to a competitor!
Hedin doesn't want nor need the Saas part, so pull your finger out Anders and show us the money.
I hope hedin do bid again as the deal price looks mean to me given current trading, company assets and future prospects.
Cant find any mention of Hedin's view on this deal. It appears to be worth about 29p (not sure about this though) which is what Hedin bid and said would accept 35p. Perhaps Hedin will bid again.