Dee Valley Grp Share Discussion Threads

[linhur] 23/10/2016 13:10

NTV

More like East Surrey takeover. Similar people involved.

Hope it gets diverted to Monopolies and Mergers Commission for review.

Ancala Fornia only formed as UK Co on 11 October 2016.
I would want more proof of £650m funds under management.

Perhaps Ancala Fornia are a "stalking horse" for the assenting
funds who wish to dispose of a "poor investment"?

Linhur

[ntv] 22/10/2016 22:21

if it is like the takeover on anglian water they will make plenty of cash. probably won't repair leaks for weeks or say they can't find anything wrong but still the water comes out the ground during a drought
never maintain some of the smaller plants leaving them
in a total mess and completely overgrown
rant over for now

[topvest] 22/10/2016 16:20

Oh yes, door open for a bidding war, if anyone else is interested.

"However the company does not provide sewerage or sewage disposal services which are provided in the main by Welsh Water with some smaller areas having waste services provided by Severn Trent Water and United Utilities."

Can't see Welsh Water doing anything given their ownership structure. Possibly not worth it for Severn Trent or UU, but you never know!

[exbroker] 22/10/2016 15:35

The irrevocables are good for a 10% bump for AXA who is the big holder (25%) and 15% for Chelverton & Aviva (about 13% in total) so if another party comes in you are looking at 1705 as a minimum for the ords. Would need some cost savings to make it work so who are the neighbouring water companies and who is the waste company in the area?

[topvest] 22/10/2016 13:40

Thanks £15.50 versus my £12.40 buy price a year ago.

Yes, it may flush out another bidder. Fair value, in my view, is probably up to £20 a share. At the offer price the dividend yield is 4%. If it was 3% you get to £20.

[linhur] 21/10/2016 22:26

topvest

You probably have voting shares unless you purchased before 2002.Non voting shares receive same dividend as voting shares. As implied by the name, non voting shares cannot vote but will receive notices and circulars but cannot attend any meetings.

There are 4,138,902 voting shares and 493,268 non voting shares in issue.

I would hope that other parties might look at making an alternative offer.

Dee Valley have modernised the water treatment plants and their leakage rate is one of the lowest levels in England and Wales. There are only 266,00 customers in an area which covers 831 square kilometres in mid and north east Wales and north west Cheshire. It is a relatively poor part of the country and I would expect they might lose business customers under the new regime in April. Dee Valley is the smallest independent water company (no sewerage) in England and Wales.

The offer is made under a Scheme of Arrangement which has to be court sanctioned. I would also expect clearance from Monopolies and Mergers Commission would have to be obtained.

It is noticeable that only the Chairman has any shares (0.02%) and other directors have not been in post for long.

It used to be a well run small company with tight control on costs and an excellent knowledge of the local facilities, but none of the current board appears to have much knowledge of the nuts and bolts of day to day operations.

Linhur

[topvest] 21/10/2016 18:15

I must own up to not knowing whether I own voting or non- voting. Which are the listed ones that most people own? It's a truly terrible offer though unless the directors know something we don't! I suggest we vote against.

[praipus] 21/10/2016 16:05

The market two years ago valued the company more highly than the city boys...

[praipus] 21/10/2016 15:55

The BOD are being driven about by the city boys like a shiny new motorbike.

Guy Hands shafted the East Surrey BOD like this too. They sold half the company for £60m profit within days of the deal being done......

The DVW BOD have:
1) grown the dividend
2) theyve grown the assets
3) theyve improved the water quality

but sell for half price!!!!!!

For Gods sake... why don't they wake up! Is there really no one on the board aware of East Surrey/Guy Hands and what they've just done?

It's a strange kind or arrogance.

[linhur] 21/10/2016 15:22

Praipus

I agree that it is a sham offer but surprised BOD agreed.
RCV as forecast at 31 March 2016 was £76mill. Recent deals eg Bournemouth Water acquired by Pennon was in range of 20-25% premium to RCV. So offer should be in region of £100mill. 5 mill shares issued offer £20 per share

[praipus] 21/10/2016 10:39

Using enterprise value as a guide Ancala are getting DVW for half price and share holders are losing a steady growing devidend stream forever.

[praipus] 21/10/2016 08:51

offer....derisory REJECT IMHO

[praipus] 27/11/2015 12:40

Interims look ok to me share price seems to have crept up unnoticed.

[linhur] 19/5/2015 10:23

Whether DVW get taken over will depend on OFWAT as they are at the lower end of the league table. I expect any takeover will depend on the Yorkshire water offers as the private equity shareowners seem to be desperate to escape.
I think the new board seem to be making progress in operations and I am also pleased with the refinancing as it must have been difficult with inflation bond taking priority on debt.

Linhur

[topvest] 18/5/2015 19:38

Well the dividend is being held with possible increases from out-performance. That's much better than I expected. Good news indeed and the share price has responded accordingly. Still expect a bid by Severn Trent or United Utilities at some point, if they can be bothered!

[redartbmud] 18/5/2015 11:06

Not sure. It looks to me like Liv is sweating the assets under her control, so I don't see her splashing the cash, although £54.22m is just a drop in the ocean.

[ganthorpe] 14/5/2015 12:36

Severn Trent do their sewage so may be favourites to buy?
Results due end of May ?

[topvest] 17/4/2015 09:09

Well I've decided to buy a few. There has to be a fair chance that this is acquired by another water company given their poor performance and large capital programme to fund.
I see that Bournemouth Water were picked up by Pennon this week. I would have thought one of the larger water companies may be interested in bolting this on.
I do expect a dividend reduction from next year onward, but long term it's probably reasonable value relative to other water companies.

[topvest] 13/2/2015 21:22

See that Dee Valley Water were the only water company (out of 18)to be given the "prescribed" assessment by Ofwat this week. Worst water company - quite an achievement...not! Means they will be under more regulatory scrutiny than any other company, probably for the next five years.

[topvest] 13/2/2015 21:20

See that Dee Valley Water were the only water company (out of 18)to be given the "prescribed" assessment by Ofwat this week. Worst water company - quite an achievement...not!

[topvest] 30/1/2015 20:09

Announcement today. The dividend looks a tad precarious on the basis of the funding the capex sentence. Looks like a cut is on the cards to me.

[topvest] 01/1/2015 11:45

Quite a bit of weakness in the price here.

Dividend cut looks possible as dividend cover in Ofwat's model is 1.28 for the next 5 year's. Company plan was based on dividend cover of 1.98 in the final determination document.

I will await the January announcement with interest.

[praipus] 12/12/2014 10:57

RNS Number : 5360Z
Dee Valley Group PLC
12 December 2014
DEE VALLEY GROUP PLC
(the "Company")
PUBLICATION OF FINAL DETERMINATION OF PRICE LIMITS
The Board notes the publication today by the industry regulator, Ofwat, of its Final Determination of price limits to apply for the five year period commencing 1 April 2015.
The Final Determination can be found at www.ofwat.gov.uk/pricereview/pr14/finaldet.
The Board can confirm that it has a maximum of two months to decide whether or not to refer the final determination to the CMA (Competition and Markets Authority) and is carefully considering the detailed content of the Final Determination prior to confirming its position through a further announcement in January 2015.
The Board also proposes to communicate the Company's future dividend policy following the confirmation of its position on the Final Determination.
12 December 2014

[zeppo] 11/12/2014 11:03

Oops!

Milk is spilt.

Now water under the bridge.

I like my current portfolio.

Ne regret rian or whatever.




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