Member Info for Livingstone20

One v interesting para in today’s Edison report, who are paid by OCN, to add to the mix: ‘Another way to highlight OCN’s value (based on the same figures) is to look at the current value of OCN’s 57% stake in PORT3 (£668.8m) and compare it to the current value of OCN (£443.8m). In effect, investors would get a controlling stake in PORT3 at a one-third discount and would receive the rest of OCN’s assets for free.’

Encouraging signs indeed! There seems little case for selling at £13 whilst still high potential for a deal announcement at any time, and resultant NAV range of £26 -36 based on Brazil press rumours. After decades in this one I can be patient a little longer!

Approved (unsurprisingly) 94% to 4%, with 2% abstained.

Last night Wilson Sons announced they would pay an interim dividend and go xd on 23/1 - same day as their EGM on the retention plan for execs for M&A period. Coincidence or another condition/negotiated point co-ordinated with deal??

Remember the last RNS quoted NAV for Wilson was for end of Sept and well up in Brazil since then. The price range quoted in the Brazilian press articles gives £20-30 NAV just for Wilson, before adding the £6 investment fund. If I was them I’d distribute the disposal cash, wind up OCN, merge rump into Hansa and thus materially reduce the double discount, unlocking masses of presently lost value. Should they choose to follow that path I will buy a nice yacht and sail it to Brazil and take in the carnival….!!! GLA

‘A number of offers’ is very good news!!

Rio de Janeiro, 14 November 2023 - Wilson Sons S.A. (B3 Ticker: PORT3) (“Wilson Sons” or “Company”), pursuant to the regulations in force, in furtherance to the Material Fact disclosed on 12 June 2023, in view of the press enquiries regarding the strategic review being carried out by the Company's indirect controlling shareholder, Ocean Wilsons Holdings Limited ("OWHL"), hereby provides the following clarifications:

The Investor Relations Officer of Wilson Sons inquired with OWHL which informed that Ocean Wilsons Overseas Limited (“OWOL”), the holding company for the Group’s indirect investment in OW Overseas (Investments) Limited (“OWOIL”) and in Wilson Sons, has engaged Banco BTG Pactual S.A. (“BTG Pactual”) as its financial adviser in connection with the strategic review of its investment in Wilson Sons. OWHL also confirmed that BTG Pactual has received a number of indicative non-binding offers for its indirect investment in OWOIL and in Wilson Sons.

OWHL emphasised that there can be no certainty as to the outcome of the strategic review process, which remains ongoing, and the indicative non-binding offers received are highly conditional. OWHL continues to evaluate all potential strategic options.

The Company reiterates its commitment to the best levels of transparency and corporate governance and will keep its shareholders and the market in general duly informed of any material act or fact, under the terms of the applicable legislation.

Michael Robert Connell

Investor Relations Officer

Lol - others are mine - same rationale!!!

Thanks for that spot. I completely agree. The top funds/trusts/equities over next 5 years are unlikely to be those at top today. Those out of favour may well be top performers of next 5 years as Brazil recession ends, exchange rate trend reverses, discount narrows, transformational opportunities realise for the assets, yield resumes at great rate etc etc.

There must be plenty of niche smaller company, emerging markets, special situations, high income funds that could tuck a few of these away at 7 per cent yield with very little downside from a ‘free’ entry point!!

I have and that is another interesting angle. Hansa as an investment trust itself sits on a 40% discount, with 20% of its holding in Ocean Wilson which sits on a 50% discount to NAV. Whilst their controlling interests limit action, there must be some mechanisms available that could reduce OCN discount, drive Hansa NAV then in turn also start to reduce HAN discount. It all just looks fairly sleepy yet with a bit of attention could drive a really positive cycle in both OCN and HAN.

At the moment it is so complex that you have to build your own Excel. Whenever I raise this to their IR team I get no reply. Now that I am fully in I think I will up my efforts on this with IR, management team and advisers. I can’t understand why they make almost no effort to narrow the discount and avoid providing the key Nav data point. A regular investment trust provides Nav daily whereas they now tuck it away once a year. Some collective efforts on that point may help anyone invested!

Share trade data seems to show 83 trades for today with 4 sells and 79 buys?! Encouraging that people are starting to spot this which should keep squeezing it upwards.

Thanks for views. This morning shows now 8% yield, even without specials if they sell port/s or improvement when exchange rate trend finally reverses which it must eventually from all time low.

With 50% + discount confirmed pre vaccine this looks a good contrarian entry point.

With a port sale, improving exchange rate, reducing discount and recovering economy this could at some point start to move, and if it doesn’t 8% yield whilst waiting is pretty decent.

I don’t think their investor relations does them any favours though. The NAV is not easy to calculate and not very frequently presented simply.

The discount would surely narrow considerably if they just stated the Nav of Wilson and investment portfolio more frequently and prominently. Investment trusts do this every day yet they only issue full detail once a year, buried in report. It used to be headline in all their quarterly releases.

By my calculation the Net Asset Value has today gone over 15 pounds, thus the share price of only £6.40 is at a whopping 60%+ discount.

With results due Wednesday and hopefully a confirmation of the 15 pound NAV, there must be a chance of a long overdue move up??!

Plus still the potential of a port/s sale, Chinese interest and potential special dividend perhaps?

Thoughts? It seems quite quiet on here!