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Thanks for the clarification - sounds logical.
IIRC, the prospectus assumed that the merger would be done prior to the next Redde divi, but if it happened after the next Redde divi is due (early March declaration), then it would be paid. I *don't* remember if this would affect the # of NTG shares that each REDD **************d for or not - it will be somewhere in the prospectus. I *think* that the NTG divi was factored into the exchange rates of the shares.
Although Northgate Redde hope to have the merger tied up this quarter I assume Redde will
1) Still report interims around 27/2
2) Pay an interim dividend
If no interim divi we could have some time to wait before the first combined payout. I noticed Northgate shareholders benefitted from a dividend during merger discussions will Redde be treated the same way ?
At last night's closing prices, the Redd sp of 107.2 divided by 0.3669 (number of ntg shares in exchange) comes to about 292. The nth price was about 297, so still a slight premium to the Redd price (long term value is another matter). Technically there's maybe scope to arbitrage the 2, short ntg and buy Redd with the proceeds if the transaction costs weren't too high and you could find the volume.
If Northgate share price goes down and Redde sp goes up our share s that we are getting in exchange are going to be worth less???
The big difference is that the board of Centamin are rejecting the offer to merge but the Redde board are fully supportive of the merger with Northgate. They recommend acceptance. It would be quite interesting if the Redde board have misjudged the shareholders and it gets rejected!
I think Redde should have issued a statement similar to the one Centamin issued today.. Our cash flow and divi combining with Northgate debt means we should be valued higher than 46%. I see some business benefits but I wonder if the Redde board members salaries will be restricted to 46% value of combined board etc..
thanks
talking to myself new name reddenorthgate
will there be a change of name ?.
Not sure when the merged divi would be due, but it will be twice covered by earnings. Merged divi would have to be a few % lower than Redde's current 10.5%. Share price moves yesterday have rebalanced market caps for both companies, which acknowledged a (very low IMO) 10-11% undervaluation of Redde shares. Redde shareholders will hold 46% of combined company. After Fridays price moves, Redde cap now £340million, Northgate £419million. £340mill is 45% of combined £759mill.
What happens now? I'm a redd shareholder and don't understand why Redd shares went up and Northgates down both by significant amounts. Can anybody advise when the new shares will go live and at what price. Was holding Redd for its divi. Does anybody know when the next divi date is for the combined group? Thanks
i think the merger will be a good match..
Agree with your thoughts and like you taken by surprise. Averil Palmer Baunack quite capable as well so hopefully a good combination for the future.
I was holding Redde for the 33% dividend over the next few years. Now we get a lower dividend but which will grow as the combined company delivers its strategy.
This slightly came out of leftfield for me but the more I think about the more it makes sense. Should be some significant cost and working capital synergies. I don't really know enough about Northgate at this stage to evaluate the revenue synergies.
I'm pleased Martin Ward will stay in charge, I think he's done an outstanding job, despite the share price underperformance.
I see Northgate is merging with / taking over Redde. The generous divi is disappearing although how sustainable it was is questionable. Northgate will own 54% Redde, Redde 46% of Northgate
northgate results are out ...........
Thinking of buying back in here after being away for the last couple of years.
Am aware of the loss of the major insurer and that this will manifest in this years accounts. However the insurer accounted for a lot less percentage profit than the loss of turnover. So it looks to me that potentially the SP fall has been overdone?
Coupled with the near 10% divi, wondering if this is a good purchase at the time being.
Question is, am I missing something, is the divi safe and is the debt at a sustainable level? In short, would you realistically buy (or re-buy) at this price point if you had the cash?
Welcome positive and negative opinions! Thanks
RNS Woodford down to less than 5%
That is ridiculous, the crook is crooked all the way
The large sell was done on 5th September, and no Tr1 till today
chart with volume
http://uk.advfn.com/p.php?pid=staticchart&s=L%5EREDD&width=600&height=260&p=2&t=1&dm=2&vol=1&cb=
mm would mark down price in anticipation of large sale or not ?
optimisticg
That is what I thought, they could have sold some but not enough to be declared, like under 19%
@MasterRSI
The last RNS, involving holdings from Woodford, was on 13 June 2019. On that day, he reduced holdings to 19.87% as you state. So he still has 60,940,731 according to last RNS I can see and hasn't sold any since.
Not today
Neil Woodford's flagship fund to be shut down
https://www.bbc.co.uk/news/business-50052945
Have Woodford sold any since June 27?
Significant Shareholders from the Redde website
As at 27th June 2019 there were 306,706,045 of Redde plc’s ordinary shares of 0.10p in issue, none of which were treasury shares.
Holder .................Percent
Invesco Perpetual ...... 29.04%
Woodford Investment Man. 19.87%
Richard Griffiths & Asso. 7.67%
Polar Capital ........... 5.27%
Aviva Investors ......... 3.97%
Well the car insurance crackdown isn't helping...
The share price has fallen from 129, looks good for a bounce back to 120. I’ll be loading up first thing
IMHO