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Now Hedin comes back with 32p offer, share price is now 30.20p ish, give or take.
WOW - what a roller coaster, Think they have until mid oct (18th ! - ?) to accept this offer or decline it, As far as i know this offer is for the whole package inc Pinewood. Maybe this is a better deal for us s holders.
That has cheered up a damp Friday afternoon! After what happened last time, tempted to take the 30p in the market!
Clearly Hedin wants it and they want it now.
This is playing out perfectly.
Looks like I was bang on for a come back bid, 30-32p range, will be interesting if Lithia do up their offer, if they do it will be before the meeting.
This share just keeps on giving. Ideal scenario now would be if Hedin are countered by Lithia upping the cash component of their offer. Previously 35p was laid down as a marker by Hedin over which they'd 'consider' another bid, assuming their position hasn't changed we might get more juice out of this.
Hedin just bid 32p!
Things looking up now, company says it will consider
Yes I was thinking that when the deal was announced, now you only get £1000 pa tax free of divi's or £2,000 if you have a joint account so not alot. and whats the tax 25%-40% so 25%-40% gone from 16p.
Difficult one.
Another consideration is the fact that the 16p offer is as a dividend and not capital return. So unless your shares are held in a SIPP or ISA then that return will be subject to normal income tax rules. As there is precious little dividend allowance from HMRC these days, then you need to consider that 16p being diluted again by the taxman taking his wedge.
It really is hard to call where the Pinewood valuation could go. A lot of complaints about the lack of growth in PDGs share over the years are because it is in an unfashionable sector and gets lumped in with other motor dealers. If PinewoodPendragon is moved to a tech share sector then it will be on the radar of funds that buy into tech shares for example.
Who put that k in should , sorry folks.
bl** fingers.
I always think it's better to have cash in the hand when you can, why not sell some /half and then see what happens.
We have all done this , thinking we are going to make a killing then the SP drops and you think Dam shoulkd have.
I notice Jefferies / Barclays and probably other large companies are shorting PDG bigtime,
does this mean they expect the share price to fall again?. or what?.
is this a signal to sell now? or?.
BIG QUESTION,
should we mere mortal share holders buy sell or hold PDG now, my shares cost 19.7p on average, during the last take over talks that failed they plummeted from 29p to 14p approx, i could have gained 20k but i didn't sell, i was expecting share price to increase more, maybe 30-35p, (greed). but they fell as per usual.
so should we sell now at 27p ish, or hang on and want more, if the deal goes through the way i see it is we get 16.7p plus own part of PINEWOOD, prob is we dont have any idea how much we would own either in shares or ££££,s......
so, should we sell now or what? any thoughts /advice/ regards : prospects/gambles or factual etc appreciated,
I think Hedin will come back with a higher offer around 35p. Having made a killing investing in Lookers I very much hope so!
I think it's too late for that now and it looks like the bod's will push this through against Hedin thoughts.
Could be wrong.
Do people think Hedin will come back in with another bid? if so what would be the share price offered 30-32p, or will they let it go?
They realise the value of their awarded options and existing stakes in the company and receive full bonuses once the deal is done
How does The CEO Berman plus other managers, benefit from selling
Its simply this, The CEO Berman (Previously Chairman ,) always had the motive to sell and dispose of Pendragon by whatever means.The board are not long serving members and have no allegiance to the company and therefore have the same appetite to sell. Hedin wants greater presence in the UK and tried to manoeuvre a clever albeit the Pinewood legal issue was something that could not be overcome. In mho the Lithia deal is the only credible option as an asset sale and separating out the Pinewood element. Pendragon was never a long term project for Berman and the board, which is why its being broken up and sold. The real issues here are as follows: will Lithia secure the Franchise agreements with the Manufacturers who often have first right of refusal to take the franchise back or approve the new potential owners and secondly,the premise of the Pinewood element relies on a future in North American expansion...not guaranteed. Whilst it is a very clever deal,nobody wants Pinewood given the legal issue.So the Lithia deal has to go through as the investment by them in the Pinewood piece at £10m would seem to be a goodwill cost exercise worth losing
Who do you trust here? Are Hedin going to do more due diligence and find something they don't like which might be enough to remove any interest from Lithia. Is the software really worth as much as they are suggesting? Why are the board seemingly so keen to get out of the car dealership business when others are keen to get into it (e.g. the recent purchase of Lookers by Alpha Group).
Hedin been smoked out, their offer is less than last time, 29p, they will need to come back with at least 30p a share, or it gone from them, Hedin themselves valued their holding at 35p a share?
Yep, pay up Anders!
28p is last years price, now come with a reasonable upsizing to get it done.
Good to see Hedin come out with their counter bid so quickly. Inclined to agree with board's rejection, they kicked the tyres for long enough last time and now they should really be offering more. What I like with Lithia offer is we still get a stake in the continuing software business, especially when it would be in all parties' interest to see that offshoot grow over time.
If the Lithia deal happens & we get our 16.7p per share, Why is it called a dividend if were selling our shares to Lithia?.
i assume we would own nothing but Pinewood shares with an unknown value!,
Also, Pinewood still has the court case pending which if lost could make Pinewood worthless, That's the way i see things,
Does anyone know if this is a good deal for us PDG shareholders or not ?, and why?
What exactly would we get?
Apparently, Hedin is unable to block this deal due to only a 51% vote in favour needed. Does that mean Hedin will come back with a new PDG offer, Hedin only wanted the same as this Lithia deal, i.e. The forecourts, car sales and leases, Basically everything but Pinewood, So why was this not offered to Hedin previously?
Also this £280M Deal would be for all 160 of Pendragons forecourts,
But, Did Pendragon not recently pay £300M for only 50 forecourts, bought from Jardine?.
So why now are 160 forecourts only worth £280M ? That's a titanic loss in forecourt values suddenly!, why:?.
Does anyone know exactly what share holders would get from this deal,
The way i see it is, Were selling our shares for 16.7p and will keep a stake in the pinewood Saas business, which may or may not be worth much.
But how much do we keep, and the value?. Would we get any Lithia shares
pls advise anyone!
its too complicated, to much unknown to decide if its good for us or not. To be honest ime a bit fed up with gambling with PDG, i always loose out in the end.
My thoughts are this still undervalues the business. The market knows you stand to get a 16.5p dividend and will no longer own any of the dealership side of the business and be left with the DMS (Pinewood). So the market is effectively valuing PInewood at 24p less the 16.5p dividend = 7.5p, give or take a small discount for the risk of the deal not getting through.
The BoD are presenting this as a good deal with their calculations valuing it at 27.4p per share, but they couldn't get it through when Lithia offered 29p so it's clearly not a good deal but just a way to flush Hedon out.
This will play out one of three ways prior to or on the day of the general meeting;
1. It gets voted through and the share's might increase to the 27.4p which the BoD thinks they are worth. Increase of approximately 15% on the current price.
2. It doesn't get voted through as more than 50% of shareholders think it's a bad deal (this would most likely include Hedon who don't need to make a competing offer) The share price falls back to where it was prior to the offer.
3. Hedon or another buyer make a competing offer for the assets similar to Lithia, or the whole business. Share price increases close to new offer price.
I sold on the day of the announcement as I'm 50/50 on whether this would pass or fall short at the vote. They only have 26.5% irrevocable undertakings, and some of those may be reducing at this price level.
If it goes through I'm happy to leave the 15% additional on the table. I don't particularly want to own a software company trading on London (historically not well valued) which is going to be cash-hungry to develop further and get into new markets, and I think the shares will get diluted with new share issues.
If someone else makes an offer I'd be leaving more on the table but I see this as a low probability prior to the vote.
If it doesn't go through and drops back to previous levels I'd most likely buy back in and wait for the court case to be resolved and Hedon to buy it or someone else if they offer 35p.
I believe tomorrow a RNS with conformation of the first half trading figures, that might flush out any other bids. If the proposed sale states a value of 27p a share, why only trading at 24p? perhaps unsure on the new listing value? Lithia getting a great deal I think.