Uil Share Discussion Threads

[hindsight] 04/3/2024 18:54

Same here vacendak. For us ZDPs the reduction in bank debt has been good to see.

Over the half year, borrowings from the Bank of Nova Scotia, London Branch ("Bank of Nova Scotia") reduced by £22.5m from £37.5m to £15.0m. As a result, total debt including the ZDP shares reduced from £139.9m to £121.9m over the half year period and gearing reduced from 83.5% to 71.3%. Since June 2022 UIL has repaid over £35.0m in bank debt and £52.3m in ZDP shares. UIL is set to repay a further £15.0m in bank debt by the end of March 2024.

[vacendak] 04/3/2024 16:56

I am now only concerned about the cover for my ZDPs.
So, I also still read the news, RNS etc. but not as assiduously as I used to.

Indeed, rolling over the 2024 would be either dicey or very expensive. They should be fine with the repayment though. The only worrying thing is that the ZDPs used to be at a healthy premium months or even years before their redemption back in the days of cheap money. By 2026 interest rates should have abated.

[cc2014] 04/3/2024 16:11

Thank you for posting this.

I still come to take a look at UTL once to twice a month but I'm not persuaded there is value here, until the gearing is reduced.

I cannot see how UTL can roll the zero's at any less than 10% at the moment so it looks like the deleveraging will continue for some time.

[vacendak] 04/3/2024 15:21

Getting concerned about the talk regarding the debt and the delayed dividend payment. I assume this is to pay off the ZDP 2024 as, unless I have missed it, there has been no talk of rollover yet. I was going to redeem my 2024 ZDPs anyway.

It also sounds like the bank, Nova Scotia, is not willing to lend as much as before.

[vacendak] 04/10/2023 13:09

Boiler plate, nothing new.
The only good thing is the mention that they have always repaid their ZDPs.

We all know why it is not working: Opaque, incestuous relationship between boards, directors, shareholders, ICM and the "platforms".

[vacendak] 27/7/2023 12:48

Well, a Dirac is a spike as a mathematical function, is it not?
Up 214.1% in an infinitesimally small duration then it dissapears, hence the cut of 19.9%. :)

They are venturing ever deeper into "It is worth what we are telling you it is worth" territory with that move; making the discount now materially impossible to close as it is no longer linked to excess liquidity on the market but just investor trust in the NAV.

[cc2014] 27/7/2023 12:23

Only at UTL. From the last factsheet.

The valuation of Allectus Quantum was increased by 214.1% due to continued progress against the business strategy by Diraq, its principal holding. However, Allectus Capital's carrying value was reduced by 19.9% over the month.

[cc2014] 21/12/2022 15:31

I think I may now understand how UTL managed to sell so many millions of shares in UEM now. I could never figure it out at the time. Presumably to a Saville third party trust or some such that didn't have to declare the purchase.

I find it hard to see myself buying back in here again.

[spectoacc] 21/12/2022 15:16

It's kept going this long, hopefully you'll be fine.

Can't see me ever buying back into UTL.

[vacendak] 21/12/2022 15:11

I just hope those things will carry on as they have so far when I let my ZDP mature and cash them in. No more rollover for me.

[morton2011] 21/12/2022 14:36

Probably relates to how saville 'repaid' the 2022 zdp. Just look at last UIL 3 factheets. Miraculously selling assets to yourself can generate most of the cash to repay the ZDP. The fully drawn £50 million debt in UIL never changed in the period and the new names in UIL top 10 were investees in the 'platforms'

[vacendak] 21/12/2022 12:58

This one is fun to read:


Long and short of it: Nothing happened.

From what I have understood (understood being a powerful word in the case of UTL) Saville was lending some money to himself with collateral from himself using shares in companies that invested in themselves. I know money was created, and distributed to Saville in the process; but I have no idea how! :)

[vacendak] 11/11/2022 09:53

The AGM results would make Saddam Hussein blush.
The lowest approval of any resolution was 99.96% :)

[vacendak] 01/11/2022 12:50

I wonder if the jump is due to the repayment of the 2022s.
Those were my last ever "paper" shares. A good old fashioned cheque should be in the mail by now. :)

[vacendak] 19/10/2022 11:52

Selling some more UEM, most likely to pay for our 2022 due at the end of the month.
UEM is not doing too badly considering the strong dollar and the overall current climate. I mean, it is not doing great but at least it is not collapsing.

[cc2014] 11/10/2022 15:11

UIL Limited ("UIL") announces that, following its Board approving the proposed transaction, it sold on 11 October 2022 to Somers Limited ("Somers") its holdings in ICM Mobility Group Limited and Snapper Services (UK) Limited for an aggregate consideration of GBP45.6m, equal to UIL's current carrying value of those unlisted investments. UIL owns 41.7% of Somers and is considered an associated undertaking and related party for the purposes of DTR 7.3, while Union Mutual Pension Fund Limited, an associate of ICM Limited who is joint portfolio manager of UIL, owns 57.4% of Somers.

The consideration for the sale will be satisfied through the transfer to UIL of Somers' holdings in West Hamilton Holdings Limited (a Bermuda property holding company, listed on the Bermuda Stock Exchange), BNK Banking Corporation Limited (an Australian banking group, listed on the Australian Stock Exchange ("ASX")) and WT Financial Group Limited (an Australian financial advisory group, listed on the ASX) which have an aggregate fair value of GBP23.3m; a cash payment of GBP13.6m; and a loan of GBP8.7m to UIL repayable by Somers. The cash payment will contribute to UIL's repayment of the 2022 ZDPs to occur on 31 October 2022.


How intertwined can they make all this.

Good to know they've now got the cash to repay my zeros!

[morton2011] 17/6/2022 18:04

The 6% loan only goes to the 'unconnected parties' and sounds cash neutral for now. If you are a an 'unconnected party' you are going to swap your share for a loan note which at least will mature in 2 years for cash plus interest unlike your share which hardly ever trades. The connected parties just get shares.
NewSomers is presumably going to not be listed and once the pesky non ICM shareholders out the way in NewSomers then ICM can just sell off all the parts as they see fit, after allowing somehow to ensure they have the 5% + interest safely banked to pay off the loan note.
As noted by others all this talk of closing the NAV gap is hot air. If they wanted to close the gap simply sell off all the assets in Somers, close the company and distribute the cash received to UIL and all the other shareholders. Not difficult to do as 10 holdings represent over 95% of the NAV.

[cc2014] 17/6/2022 11:18

Of course it's not unsolicited. Perphaps the shareholding is such they can argue that but the parties are clearly connected.

But, it's Bermuda isn't it. Like the chair of the meeting at Somers doesn't actually turn up and run the meeting as that's the way it works out there.

It's all wheels within wheels.

And now we have UTL selling down part of it's stake in UEM even though they point out with such force in the Edison report that it's a discount on a discount.

I'm delighted to be out of my 26's and 28's a few weeks ago, mostly triggered due to rising interest rates plus the fact the bank loan is due in about 3-4 months and they haven't yet renegotiatedt terms.

I assume the new 6% loan UTL will be taking out to buy part of the shares of Somers (how does that work if several parties are taking out one loan all on the same terms? No don't answer that, I'm probably seeing things that aren't there) will push the ZDP lower down the stack? Or perhaps they aren't taking out a loan but instead liquidating part of their stake in UEM to pay for it.

As I said I'm delighted to be out of my 26's and 28's. I have a few 22's. Surely they are safe and they redeem in about 4 months.

[spectoacc] 17/6/2022 09:35

Lol Netflix - a sort of Game of Thrones without the nudity?

[vacendak] 17/6/2022 09:32

How can this be "unsolicited" as the UIL/ICM/Somers/etc. investors are mostly GPLPF/Permanent Mutual Limited all linked to Duncan Saville in one way or another?

After how many layers would someone be deemed unconnected?

Maybe I am wrong and Somers is genuinely held by unconnected/unrelated investors, but I doubt it.

If corporate finance was seen as exciting, UIL could be a hit series on Netflix, spanning at least twelve seasons with all the history available so far. :)

[morton2011] 16/6/2022 14:49

Following up on the Somers notice in UIL factsheet saw this in Bermuda. It seems that UIL would not receive the loan notes as that is for the unconnected shareholders.

In a filing with the Bermuda Stock Exchange [BSX], Somers Limited announced they received ‘an unsolicited offer from shareholders representing approximately 95% of the Company’s issued share capital.’

The full filing stated: “Somers Limited, a financial services investment holding company, announces that it has received an unsolicited offer from shareholders representing approximately 95% of the Company’s issued share capital [collectively, the “Bidder”] to acquire all of the Company’s issued shares [the “Proposed Transaction”]. If consummated, the Proposed Transaction would result in all shareholders unconnected with the Bidder receiving $21.00 for each share of the Company they own [the “Transaction Consideration”].

“The terms of the Proposed Transaction include that the Company would merge with a to be formed special purpose merger vehicle incorporated by the Bidder, with the Company being the surviving corporation [the “Surviving Corporation”].

“The Transaction Consideration would be payable in the form of a two year loan note to be listed on the Bermuda Stock Exchange with an annual interest rate of 6% [accruing daily] issued to current non-Bidder shareholders by the Surviving Corporation.

“The Company has formed a special committee of two directors independent of the Bidder to assess the Proposed Transaction, including whether or not the Transaction Consideration represents fair value for the Company’s shares.

“At this time, no decision has been made by the Company or the special committee on whether or not to recommend the Proposed Transaction to shareholders. The special committee intends to give careful and urgent consideration to the Proposed Transaction.

“A subsequent announcement will be made once the special committee has decided to support or reject the Proposed Transaction [including if the special committee decides to support the Proposed Transaction on modified terms]. Any Proposed Transaction will be subject to shareholder approval.”

[morton2011] 16/6/2022 11:58

'Wheels within wheels.' lets hope they stay on!

[cc2014] 16/6/2022 11:12

"The majority shareholders in Somers, including UIL have made an offer to acquire all of Somers' issued shares at a value of USD 21.00 per share. The consideration would be payable in the form of a two-year loan note to be listed on the Bermuda Stock Exchange with an annual interest rate of 6.0%."


Wheels within wheels.

[vacendak] 30/5/2022 09:12

Another Edison report.


It reads as slightly less friendlier than last time, reporting on the low free-float, the high fees and the not-so-very-independent directors.
Still, it gives good marks to the company reducing its debt/gearing and - to reassure CC2014 - highlights their records at repaying their ZDPs.

They still have faith in Resolute Mining despite the terrible performance. Granted the situation in Mali is not their fault; but what is their fault is putting a lot of eggs in that basket.

Not sure about the choices for the peers - BMO Managed Portfolio. Really? - but when compared to those, UIL's performance is lacklustre. It only beats the simple average on dividend yield.