Member Info for DC2007

Hi Scully,

Best of luck with your strategy. You seem like you have it all sorted. But I'm curious: can you afford to lose your £10.6k if that happened?

Got to echo that HK. The PI has been worked over. I've been a holder since 2016. When MA's involvement initially increased, it was disconcerting, but back then it was minor and I dismissed it.

The BoD/shareholder relationship has deteriorated since Sergio took over. I started mitigating about 18 months ago when I began to be concerned. But even then, I thought these were worst case scenarios - so bad they could be basically ignored. Never did I think it would turn out this bad. For that, I hold the BoD and their communications responsible - they've led the shareholder up the garden path.

Best for the resolution HK.

Damn! I'm sitting on a position from 55p before divis which reduce it to about 50p. Mine was just in five figures though, yours was much more. Got to be honest HK, not got much hope, but it's not over til it's over. ATB

Hi HK85,

Hope you are well on this turbulent week. MA's 'possible offer' is a permitted statement to make to the market. The Code allows for an offeror (the buyer) to indicate interest in the offerree (the target - DEB) without committing to making a firm offer. Such overtures however cannot be done lightly - they have to then be formalised or withdrawn under the time limits prescribed by the Code.

My opinion is that earlier this week, MA was rattling the locks to see what would happen. Reaction, sentiment and day traders were the cause of the SP movement. He made no commitment to buy, or even to make an offer. Daniel can probably put this better than I and fill out the details.

All the best with your position HK - I hope you recovered some.

Sorry n1, but that's desperate reasoning. No way Amazon or Next will be bidding for this. Both are doing nicely without shelling out a few hundred mil on the carcass of an enterprise that has been demolished by its current management. Total fantasy/clutching at straws.

Thank you for your considered response Pearls. I think you implied earlier that you are an employee. You have been more optimistic than many here and I wonder, have you backed that up in buying a large position at such low prices?
Atb

Well done Pearls, you've got it right for now.

Hi n1,

Why is it unlikely he'd win in the auction if it went to pre-pack?

Atb

Sort of odd, despite a sunk loss, I'm actually excited!

I don't know either way if daniel has a position. I've found their comments well reasoned and their expertise entirely credible; a negative situation should not be glossed with positive analysis. If you have counters to their reasoning or argument, let's hear it.

Yes, daniel - and Alexios - I've had another read of the RNS and I agree: MA last acquired voting rights on 1st March 2018, taking his voting interest to 29.7%.

So there is no twelve month period in operation for a mandatory offer; and there is no three month period in operation for an offer made whilst the offeror has a voting interest below 30% either. So MA is free to come along and offer 0.1p without violating any rule, if he wanted to.

Thanks both of you for elaborating.

Thanks for your reply Alexios. The Takeover Code is a worthy rival to the DaVinci Code.

Atb

Hi daniel.f,

I thought the Takeover Code used voting interest, rather than outright equity purchase, to 'starting the clock' for any subsequent bid. Happy to be corrected. Are you saying the subsequent bid for MA wrt 12 months minimum has already lapsed?

Atb

Hi Alexios,

Can you take a look at RNS 6442L issued on 20th April 2018 please? My reading according to this RNS is that SPD took their holding to 29.7% on 18th April 2018.

Atb

He'd not put himself in the position of having to make a mandatory offer because he'd then have to pay 22p. If he offers whilst his holding is under 30%, he cannot offer less than the minimum price he has acquired equity at within the last three months. Since he's made no acquisitions for three months, he can offer any amount he sees fit.

If your punt is fun money you don't care about losing, you could let it ride. If it's at all a material amount, selling up straight away is the only sensible action. Good luck Gizzard.

I get you're an employee and perhaps sentiment/attachment is clouding how you see this Pearls. But your comment below, that:

"I have read the bond issuance RNS several times and it makes no reference to shareholders or to any requirement to take a D4E / prepack.";

is rebutted in RNS 7082T (22 March 2019) which states:

"certain of these options - if they materialise - would result in no equity value for the company's current shareholders."

Anyone reading Pearls' post...please take a look at that RNS too before coming to any conclusions.

To pickup on your points Doubleheadedcoin:

- The lack of response from the BoD typifies their performance in this mess; so in general, I would say yes, it's odd, but for DEB, no, unfortunately not.
- How are you are so sure DEB will be trading normally tomorrow morning on the exchange? If they announce a pre-pack at 5pm, all the shares are immediately worthless. Even if they could be 'traded', since everyone would be a seller, no bargains could be made and their value would be zero.

This is all done. Probably finish with a new all-time low as the last act just to rub it in. No spike coming, no bid coming from MA. Think I might as well have lunch rather than watch and wait.

Don't you realise there are two independent timelines running here Pearls? DEB last week said agreement of their new facility may result in no equity value. If their agreement includes a prepack that they announce later today, that's the shares worthless forever - 22nd April doesn't need to matter a jot.