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DELIVEROO PLC has announced a proposal to buy back shares by way of a Tender Offer.
The Tender Offer will be implemented by way of a Dutch Auction. Shareholders have the following Options.
Option 1: Tender their shares at a Strike Price yet to be determined by the Company.
Option 2: Tender their shares at a price between 115 pence and 135 pence per share. Prices must be specified in increments of 5 pence per share.
If you elect for Option 2 and do not quote a price at which you wish to tender, we will tender your shares at the announced Strike Price. If you quote a price outside of the specified price range or input incorrect increments, your election will be deemed as invalid.
Valid tenders may be subject to scaling back at a basic rate of 12 percent. Tenders made above the strike price will be rejected in full.
We recommend shareholders view the offer circular on the company website available on: https://corporate.deliveroo.co.uk/investors/proposed-tender-offer/
How This Affects You:
Based on your holding of 754 DELIVEROO PLC shares on 03 October 2023, you are entitled to tender up to a maximum of 754 shares.
You Have The Following Options:
1 Accept the Offer and tender any or all of your DELIVEROO PLC CLASS A ORD GBP0.005 shares at the strike price.
Tenders may be scaled back.
If you elect to tender any or all of your DELIVEROO PLC CLASS A ORD GBP0.005 shares, they will not be available for you to sell or accept any other offer unless this Tender Offer does not go ahead, in which case we will notify you.
2 Accept the Offer and tender any or all of your DELIVEROO PLC CLASS A ORD GBP0.005 shares at a fixed price up to the maximum price per share.
Tenders may be scaled back.
If you elect to tender any or all of your DELIVEROO PLC CLASS A ORD GBP0.005 shares, they will not be available for you to sell or accept any other offer unless this Tender Offer does not go ahead, in which case we will notify you.
Important Information & Other Key Dates:
On 28th September 2023, Deliveroo PLC announced their intention to repurchase up to GBP250,000,000 of its shares from Existing shareholders by way of a Dutch Auction.
The purchase price paid for each share successfully tendered will be based on the number of shares tendered and the prices specified by tendering shareholders. Deliveroo will determine the lowest price per share within the range that will enable Deliveroo to purchase up to GBP250,000,000 of shares. All shares tendered at prices higher than the purchase price will be returned to shareholders.
Please note that Dutch Auction may be subject to scaling back (reduction in number of shares tendered). As your Deliveroo shares are held through a nominee, all elections to subscribe will be treated on a nominee level and MAY therefore be subject to scaling back to a greater degree than that of an individual shareholder. Any scaling back will be made in accordance with the instructions from Deliveroo a
This is a company with 1 billion cash and 1.9B valuation .... crazy......an doing well now...... they announced they would return 250 m worth of surplus cash to shareholders a long time ago in addition to 50 m equity buy back....
its crazy that the price is still in this range it should be in excess of 250... the ones who hold long term (1 year) will make 200% return. i am not selling thank you....
Thanks for posting. keep posting..... the stock just went up 10%....
Is this new activist playing a part here?
Also suggests confidence in outlook
Not a company I would invest in, I reiterate What I posted Back in July
I can't see the logic in these so called forecasts.
No dividend and no likelihood of getting any in the foreseeable future , No yield, Hardly any assets,
NAV about a third of current price. Directors haven't the confidence to invest.
What has it got going for it? What am I missing?
Perhaps someone could enlighten me please
Is that so?
We've adapted to managing COVID, and I don't anticipate any further restrictions. Investing in Deliveroo solely based on this assumption is misguided. Deliveroo is transforming into a profitable growth company with substantial cash reserves. It's likely to return to its IPO price within a year, even without considering COVID. In fact, COVID might hinder its performance since people have less disposable income to spend.
What a sad way to invest Novice1979, trying to benefit on the back of those that fall foul to the Chinese disease.
Hi All,
I bought some stock this morning and excited about future prospects for this business. With Covid on the up, although I don't expect a lockdown, there will be measures put in place to control the spread, and I believe takeaway delivery companies like Deliveroo will see a huge increase in business in the coming weeks and months. My good friend is a consultant at Winchester hospital and he has told me that the NHS are getting ready to re-open Covid wards and many people will be wanting to get takeaway rather than eat out in restaurants.
If sp, today can close above 115.5, two price pivot breaks upward will have occurred. However overhead supply from previous trading is expected above 120. Also the counter trend line is sloping down just above 120. Confidence in the resumption of uptrend, will not resume until price action funds support above 120. Additional confirmation of resumption of uptrend , will be the RSI(relative strength indicator ), moving above 50.
Morningstar Stock of the Week 14th august 2023:
https://www.morningstar.co.uk/uk/news/238162/stock-of-the-week-deliveroo.aspx
MB - A scrip share is an unlikely possibility - A Scrip Issue issue might be say one new share issued by the company for every four or ten shares held. The benefit is greatest if the share price is climbing significantly - it is not treated as income, but as a capital gain when sold. Cancellation does not come in to it, unless you are talking about buybacks.
That is roughly 12.5 percent of the market cap.... so could be 12.5% dividend or buyback....either way ....
Special dividend or scrip then cancelation. We will know be September.
Going forward, we will regularly review our capital position, as we make further progress on our profitability and cash generation and as the competitive, consumer and regulatory backdrop becomes clearer.
As at 30 June 2023, the Group had a net cash position of £948 million. The proposed £250 million capital return, together with the remaining £21 million balance of the £50 million share buyback programme announced in March 2023, would leave the Group with a pro forma net cash balance of £677 million at 30 June 2023.
We intend to consult with shareholders to determine the most appropriate distribution mechanism for the proposed return of capital. Following this consultation, we expect to update the market on how we will return the proposed £250 million before the end of September.
Very content heree moving forward although I did expect more of a move up past the 132 of a few days back.
I'd expect a fair few analysts to shift to a more positive position and up their target price. This should help continued momentum in the price so worth adding on dips as we rise. Great to see investors recognising market share is only one part of the equation and it'll be sensible profitable growth that wins the day here.
Wow amazing results.......
Profitability ahead of expectations with adjusted EBITDA* of £39 million in H1; adjusted EBITDA margin (as a
% of GTV)* increased to 1.1% in H1 from 0.2% in H2 2022
Net cash* of £948 million; further progress towards sustainable cash-generation, with free cash outflow*
reduced to £(28) million.
and valuation of just £2 Billion. Crazy. The revenue run rate is £2 B. in my opinion the business should be worth at least £5-7B. stock price at nearer to 300p. I will continue to buy.......
That will be for when the results beat and feed through to the bottom line. Doubler so far from the lows - soooooooooo nice.
I am surprised we are still at 1.26. i thought should be nearer to 2.5 or so
I hope your right Mary because like Greencore I am a whisker away from breaking even (down 6%) but bought in on IPO at £3.90 and have been painfully averaging down since. I have high hopes for this company still but can't wait to take some money off the table when I break even.
Missing a lot by the looks of it. On the charge the last 6 months. Another 6 months and won’t be far off IPO imo.
It's not all just pizzas...NHS uses delivery companies to send prescriptions. If it is anything like the rest of the NHS bureaucracy's use of tax payers' money, this will be a big profit maker for the delivery companies.
Will head back to greater than IPO price IMHO. DYOR and enjoy the ride.
Bought 5% in delivroo.
Great confidence building up
I can't see the logic in these so called forecasts.
No dividend and no likelihood of getting any in the foreseeable future , No yield, Hardly any assets,
NAV about a third of current price. Directors haven't the confidence to invest.
What has it got going for it? What am I missing?
.
Thanks to Gold in Sacks boost & yesterday's Jefferies reiteration with a target of £170!