You are absolutely correct.
Private equity will delist once the bid is won. In fact, they will save the expense of a listed company, which is not cheap.
South Staffs is a prime example of that.
There are ways and means of mopping up profits without recourse to dividends.
Fat directors remuneration.
Excessive management charges.
Supply contracts at 'inflated prices'.
Agreed it’s in the document that they will delist so if any holders think they will continue getting dividends and a share price then think again. It’s all down to the value of the bid, and if you look you will see SVT have remover the CMA phase 2 clause from the conditions. Read the statement they put out on Friday|
|Ancala are a financial buyer so how will they make money if they don’t cut costs. They have no operating efficiencies or cheaper debt than SVT. SVT could learn from the Dee Valley customer service and move jobs to them not from them you don’t know. If Ancala do win and load the business with cheap debt (watch the capex get slashed) then mess up SVT would be the vest buyer and end up owning Dee Valley anyway.|
|Won't Ancala delist if they get over 50%? The Board will have to go anyway given they are backing the wrong horse now. Indeed, the Board seem to have backed the wrong horse at each and every stage.|
|A question for all those wanting Ancala to win. As the market price is above the 1706 offer price why have you not sold your shares in the market? It seems that the view is that the employees are more important than the customers, not sure the CMA will share that view or OFWAT. I continue to support the SVT bids as the best for all stakeholders and not just those that make most noise!|
|Praipus, Re 424, point was regards Ancala revised offer to take a simple majority leaving the remaining shareholders to continue as is with dividends, already answered in Redgogs post along with a number of other interesting points.
A lot of negative press on the SVT bid at the moment, looks to be an interesting EGM|
|Totally agree with Molly80, I'm with Ancala, better outcome for customers, suppliers and employees of DVW|
|employees of Dee valley water all want to have the Ancala offer as the winners of this fight
As a DVW customer the thought of spending an extra £100 a year on my water is horrifying.
As a shareholder even though I will lose out I will be voting for ancala|
|Re 428.SVT can outbid Ancala because of economies of scale. That's what the employees are concerned about!
I question why SVT is spending so much time and resource on a business that will have a miniscule effect on their earnings.|
|Re 429. The Annual Performance Report for 15/16 shows revenue of £4K from bulk supplies. Bulk supplies purchased is less _ only volume disclosed.
Not sure why this point is relevant.|
|My water provider is South Staffs that has had 4 owners since privatization, starting with Arabs and is now owned by KKR a US private equity business.
During that time my water bills have rocketed. No idea what control the Regulator has, if any.
|Pension fund consultancy to Ancala, Willis Towers Watson says customers have been withdrawing/redeeming their funds in increasing numbers since the the Brexit vote in June. What will Ancala do with DVW if this trend continues?|
|Which other water companies does/has DVW supplied water to?|
|Why hasn't Ancala even matched SVT's offer?|
Thanks for the Info regarding the Ancala bid.
I made a decision on selling some of my shares on the market at 1800+ due to being a very risk averse investor ( ever since Northen rock :( )
I get it that some posters think its a done deal/all over, however due to the growing political pressure pushing for a phase 2 CMA, industry regulator unhappiness( cc water etc not OFWAT) and the way the shareholder vote is structured, then I have less confidence in the outcome for the SVT 1825 bid, hence splitting my risk, and taking some profit on the market, not sure this makes me a fully fledged turkey, perhaps more of a chicken.
I do take the point of Ellie15, Ancalas statement seems to indicate that they are willing now to take 51% majority shareholding, this would leave remaining shareholders with their shares and their dividends, also leaving a local firm with a local supply chain.
If you check out the water only bills of both companies as a straight comparison the DVW are substantially lower cost to consumers than SVT are to theirs. How SVT can make the inference that their best practices will lower bills in the DVW area when they are running at such a premium in their existing area of supply is a mystery ( one off head count savings would be the only way)|
|Ancala all the way I say if you want to keep local jobs, local economy and low water bills. Dee Valley Water employees will not only lose majority of jobs if STW take over it will have a knock on affect with the many local suppliers of Dee Valley Water in the area causing even more job losses. I would not trust STW with my shares after reading article dated 26 February 2015 in The Sunday Herald whilst STW CEO was a non-executive director of Tesco's board.|
|Ancala is an offer so you have to accept it or not, they can buy you in if they get to 90% but there will be no dividend and an even more difficult market for the few shares that are left trading. I know its Christmas but don’t be a turkey!!!|
|Ellie15 re: your#410 where in the Ancala offer/s does it say you can keep the shares and the dividend if you don't vote for their offer?|
Dee valley water website, select dee valley group in tabs, Severn Trent WAter offer, agree to disclaimer and there is a list of documents.
Strong feelings from employees regards the Severn Trent offer, from my dealings with the Company as a customer, a passionate workforce who excel in service not wanting to lose their identity.|
|Found it...and as expected...
"In summary, we are against the Offer made by Severn Trent Water, and are so concerned that we have raised our objections to the Competition and Markets Authority (“CMA”) explicitly outlining the case for the Offer to be referred to a stage 2 review by the CMA. We note that the Scheme will not proceed if the CMA makes a Phase 2 CMA reference in respect of the Acquisition before the date of the Court Meeting."
How many shares do the employees own, I wonder?|
|Has anyone actually been able to find the employee note posted in the RNS. Buried in the web-site somewhere so the Board obviously don't want anyone to read it. Probably ant-SVT I would guess.|
|Well that's interesting; about 2 accepting and 2 not. On that sort of result Ancala are going to succeed. We would lose some money, but the delight in seeing the Severn Trent empire build strategy losing would provide some compensation!|
I am not sure if there is a bit of seasonal madness breaking out on this board but why would you accept the bid at 1706 when you can vote for the SVT one at 1825 or sell in the market?
The price is lower today as there will be no improvement to the SVT offer and the buyers of which I was one have dropped the price, there is a buyer in the market but not a market maker giving 1800 for 35000 at the start of today. I am looking nearer 1790 as I have to pay stamp so my costs are about 12p per share with the comm.
Ancala are not allowed under the takeover rules to just pull their bid so it will remain open until at least the first closing date, 15 December. They can after that lapse it releasing the irrevocables entered into by Axa and Aviva. I am not expecting any problem from the CMA on the SVT bid, the last day to trade DVW after the SVT vote assuming it goes through will be 25 January.
Here is the detailed timetable from the Stock Exchange system, don’t ask!!
Relative Details and Dates:
Please see below for expected timetable: (All times are London times unless otherwise stated. Dates are indicative only.)
- Scheme Circular will be sent to Dee Valley Ordinary Shareholders as soon as practicable and in any event within 28 days as of 16 November 2016, unless otherwise agreed with the Panel.
- The phase 1 clearance from the CMA for the transaction is expected to be achieved within approximately 40 working days from the date of this announcement.
- The revised dates of the Court Meeting and the General Meeting will be announced as soon as practicable and will be not less than 14 days after the date of the announcement. The announcement setting out the dates for the Court Meeting and the General Meeting will also set out the anticipated date for the Scheme Court Hearing, the anticipated Effective Date and the anticipated date of delisting of the Voting Ordinary Shares and the Non-Voting Ordinary Shares in connection with the Revised Ancala Bid.
2017-01-10 Latest time for Scheme Shareholders to lodge blue Forms of Proxy for the Court Meeting in relation to the Scheme (9:30)
2017-01-10 Latest time for Voting Ordinary Shareholders to lodge pink Forms of Proxy for the General Meeting in relation to the Scheme (9:45)
2017-01-10 Scheme Voting Record Time (18:00)
2017-01-12 Court Meeting in relation to the Scheme (9:30)
2017-01-12 General Meeting in relation to the Scheme (9:45)
2017-01-17 Latest time for lodging of green Loan Note Forms of Election and TTE Instructions in respect of the Loan Note Alternative (11:00)
2017-01-18 Scheme Hearing Date to sanction the Scheme
2017-01-18 First closing date of the Contractual Offer (13:00)
2017-01-19 Scheme Record Time (18:00)
2017-01-19 Last day of dealings in, and for registration of transfers of, Ordinary Shares (17:00)
2017-01-25 Cancellation of listings of Ordinary Shares (8:00)
2017-01-25 Effective Date of the Scheme
2017-02-08 Latest date for despatch of cheques or settlement through CREST (as appropriate)|
|Sold some of my shares on the exchanges, If SVT fail in the vote, as is a possibility,the price could well drop. Would look to buy back then.
A question for the more experienced investors.
Why would Ancala not withdraw their offer, why leave it on the table?|
|Praipus, when SWW acquired BW the WIA and CMA ruling was that if the company had a turn over of 10million then it would be refereed to a CMA level 2, that ruling has since changed, otherwise DVW would be an automatic referral. The fact that it involves a Welsh company at a time when there are significant changes in the not too distant future regards devolution and that there is so much political pressure surrounding this and undoubtedly other factors relating to the potential for a level 2 investigation does throw an element of risk in to the equation in my opinion. If SVT fail then the share price will drop so a missed opportunity to cash in so the question is, take the risk and lose out or take the high price now without risk. As a customer of DVW also, I have stated previously that there is a potential to lose out with the inevitable higher bills from SVT and the fact that I would prefer to keep my water supplier local with local people on employment so a number of reasons. From a shareholder point of view, I believe there is uncertainty and with Ancala revised statement, there is also still the option for the remaining shareholders to continue with dividends so the vote isn't a foregone conclusion imo|