Acencia Share Discussion Threads

[tiltonboy] 17/3/2014 13:57

A near 1.5p improvement in NAV over the last month.

Impressive!

[redhill9] 03/3/2014 12:58

Skyship,
Thanks for post 345. I think I must have dismissed the second para of clause 4 as not relevant and only remembered the first para which reflects what I was expecting regarding full distribution.

[badtime] 02/3/2014 22:08

but then tilts just said the company MAY well be in funds...then of course there is the question over how it is handled...tender offer? buyback? etc

[gary1966] 02/3/2014 20:20

Thanks Tilts. So notice well and truly already served on those then and unlikely that any would be on as short a notice as six months then.

Agree with your earlier post then that payouts will be staggered over the next 13 months and that will hinder the return across the whole portfolio.

[tiltonboy] 02/3/2014 19:49

If you look at the liquidity profile in the Dec 2012 results you will note that nearly half of their holdings required 48 months or greater notice periods.

[gary1966] 02/3/2014 19:32

Skyship,

The way that reads to me is that they have to position themselves to liquidate the whole portfolio and ACD ceases to exist. A new vehicle then gets set up and current holders who want to continue backing the management can re-invest the proceeds of the liquidation with the new vehicle. Probably does mean that a lot of the funds are on notice to liquidate and that proceeds will be distributed at various times throughout the year, thus reducing the total payout over the next 13 months. Still very happy with what we should get on that timeframe.

Only caveat to that is that the EGM is in September and that would still give them over 6 months to wind up time. Are any of the funds on more than 6 months notice? It would also give them time to find out who wants to cash out before serving notice.

Gary

[skyship] 02/3/2014 17:39

redhill - don't worry - but read Clause4 of the Portfolio Update on 29th January; and some comment earlier on this thread. The point is, of course we will have our cash exit at NAV; but a Continuation is also to our benefit as IMO it would require perhaps minimal portfolio liquidation, ergo no asset sales at unnecessary discounts:
======================

4. Proposed Return of Capital and Potential Successor Vehicle
As required by the Company's articles of incorporation, the Board will hold an Extraordinary General Meeting by no later than September in this year at which a resolution will be put forward proposing that the Company be wound up. As discussed above, the Investment Adviser and the Investment Manager are working towards the realisation of the Company's direct and indirect liquidating holdings with a view to providing shareholders with the opportunity for a full cash exit in early 2015.

A number of shareholders have expressed an interest in the possibility of a successor vehicle being provided as part of the winding-up proposals. The Board is actively considering this possibility and will ask its advisers to gauge investor appetite to see if there is sufficient demand to give such a vehicle critical mass. The launch of such a vehicle would only be contemplated provided it would have no negative impact on those shareholders who wish to elect for a full cash exit.

[redhill9] 02/3/2014 12:32

Skyship you seem to suggest that maybe 75% of institutional shareholders will want to continue, but how is this relevant? I've been assuming there is no possibility of continuation. As I understand it, the vote in late 2014 only requires one shareholder to vote for the fund to be wound up (presumably that actually means any shareholder with a minimum of one vote). Have I got that right? If so, winding-up must be a formality that requires the vote to take place but the result of which is in no doubt. Wouldn't it be very odd, if not irresponsible, for the management not to have an eye to that situation in their actions leading up to the vote?

[skyship] 01/3/2014 11:12

I should think they've already got a pretty clear indication from their largest shareholders.

[tiltonboy] 28/2/2014 17:25

They will have to give notice well before then for some of their investments.

[skyship] 28/2/2014 16:06

Tiltonboy - sure, but don't you suspect that before the EGM (Sept'14) they will have a pretty clear indication from the institutional shareholders regarding the continuation. I suspect that more than 75% of institutions will want to stay with it; and in which case there will be no pressure to sell down assets.

BT - 110p + divis of 3.8p = 10.5% GRY to end Feb'15...

[badtime] 28/2/2014 14:44

I'd be happy at 110p by Feb 2015 including div

[tiltonboy] 28/2/2014 14:39

Many of the funds will have notice periods that do not correspond with the timetable of ACD, and it may well be that they find themselves in funds ahead of 31st December. Of course there will be a "tail" which takes us into 2015.

[skyship] 28/2/2014 14:29

112p + 3.8p in two divis would still give us 12.4% over the next 12months. Would be happy with that.

Incidentally - "With notice having been given" - what are you referring to there?

Were you referring to this piece from the RNS on 29th Feb:

4. Proposed Return of Capital and Potential Successor Vehicle
As required by the Company's articles of incorporation, the Board will hold an Extraordinary General Meeting by no later than September in this year at which a resolution will be put forward proposing that the Company be wound up. As discussed above, the Investment Adviser and the Investment Manager are working towards the realisation of the Company's direct and indirect liquidating holdings with a view to providing shareholders with the opportunity for a full cash exit in early 2015.

[tiltonboy] 28/2/2014 12:35

I think 115p may be a little bit rich now. With notice having been given, it will be interesting to see the profile of receipt of funds, and for how long they will be in cash.

[seekerofvalue] 28/2/2014 12:23

Only too glad to help.
With a repeat performance of 2013, ACD should be very close to that SKYSHIP.

[skyship] 28/2/2014 12:01

seeker - thnx for those links - especially the recent Apollo piece. Judging by those articles we may yet see the 115p Tiltonboy suggested all those months ago.

A bit of a milestone reached today as we hit 103p Bid.

(Footnote: If we get 115p on 28th Feb'15 then the GRY at 103p exceeds 15%!)

[seekerofvalue] 28/2/2014 10:40

ACD continues to be in a sweet spot, as is shown by the recent activity of Hedge Funds across Europe.

Related news:

Hedge Funds Hire for Europe Asset-Backed Selloff: Credit Markets


Apollo's Co-Founder Sees Opportunities to Invest in Distressed Debt
hxxp://dealbook.nytimes.com/2014/02/25/apollos-co-founder-sees-opportunities-to-invest-in-distressed-debt/

Hedge funds vie for distressed debt pros in Europe


Funds to bet billions on European distressed opportunities as liquidity floods markets

[badtime] 26/2/2014 19:30

Looks like another buy back ...75k purchase

[skyship] 25/2/2014 10:27

Another 0.01%!

============================================
Final Net Asset Value as at end January 2014

As at the close of business on 31 January 2014, the Company's Final Net Asset Value per share was as follows: Ordinary shares - 110.58p
============================================

[badtime] 24/2/2014 17:00

160K Buy back then

[skyship] 17/2/2014 11:17

Steady as she goes in January:
==============================

17 February 2014

As at the close of business on 31 January 2014 the Company's Estimated Net Asset Value per share was as follows:

Ordinary shares - 110.57p

This reflects an increase of 0.03% versus the Net Asset Value per share on 31 December 2013.

[langbarb] 03/2/2014 11:26

Hi Skyship. Yes it's great to see my concerns being addressed, and yes it's likely Edison knew about the imminent disposal at small discount. I am pleased. This is by far my largest position, but I justify it as I see as relatively low risk, and I don't like equity valuations. As an irritating pessimist, I note there still is 12.5% of assets invested in illiquid securities (though the statement shows confidence in timely and at market value disposal). So assuming 95% of book value achieved the NAV will take a 0.6% hit. As (again) an irritating pessimist, I don't think we'll get double digit return at today's entry point, though I now expect (actually demand) to be proved wrong...
I am also eager to see how the NAV did during January. Interestingly, according to Deutsche Bank credit did not fare too bad this month with most HY and SUB indices in positive territory (on a total return basis). Surely this is not an accurate proxy for the ACD assets but could give an indication that NAV might have held ok... we'll soon find out...

[skyship] 01/2/2014 15:31

eeza - many thnx for that - edited accordingly