Dee Valley Grp Share Discussion Threads

[ellie15] 12/1/2017 20:07

So the rules of the scheme are a simple majority by number, amount of shares owned isn't a condition of the scheme so how can the votes be removed? Anyone know of a similar situation that went to court previously, if not this is a landmark case that will set a legal presidence, its all getting interesting.
Daily Mail have posted an article in their business section so it's also gone national.

[hindsight_speculator] 12/1/2017 19:03

Scheme approval requires 75% of shares voted to be in favour and also a simple majority by number of shareholders voting in favour. The latter condition is not met if you take account of the votes of the employees who acquired 1 share each.

[topvest] 12/1/2017 18:32

How does that work if they are small holdings?

[redgog] 12/1/2017 18:16

All down to the high court on the 25th of January now

If the 400+ shares are allowed then SVT fail to gain control by 56% to 44%.

[linhur] 12/1/2017 17:24

Attended both meetings this morning and both resolutions were easily passed with majorities of over 85% in favour.

Because of the situation regarding the 445 recent transfers of small holdings the Dee valley board asked for a court direction on whether they should be counted. The chairman used the Court discretion to disallow these votes. As it was a large majority over the 75% the matter will be considered by the Court at the Sanction Hearing.

The room was packed with attendees (my estimate over 250 -300) Only 2 questions were asked at the Court Meeting which were whether the Sanction Hearing could be delayed from 18 January to allow representations from the 445 recent transferees and whether their legal expenses would be paid. The Chairman said the board would consider these points. Only one question was asked at the EGM whether the estimate for advice and legal costs of £3.25m was too low.

So it looks as though the Scheme of Arrangement will go through but the pay
out may be delayed.

Afterwards, there appeared to be a very gloomy/disappointed reaction from people historically connected to Dee Valley Water.

[hindsight_speculator] 12/1/2017 13:06

Anyone at the EGM/Court Meeting today? Poll results not announced yet.

[praipus] 11/1/2017 20:00

Price action says either it's SVT's or there is another bid/bidder in the wings. That said anything could happen and probably will.

[topvest] 11/1/2017 18:47

What a saga! Be quite funny if Severn Trent lost out to be honest!

[exbroker] 11/1/2017 16:27

From what I have established the number of shares is less than 500. There seem to be a lot of new shareholders with 1 share! It will be interesting to see what the court makes of this situation!

[exbroker] 11/1/2017 15:59

It seems very odd that there are that many transfers in such a small company. I would also smell a rat if I was at the company. What name have these shares been transferred into and what is the total number? It would be wrong if a tiny amount of the voting shares could block the wishes of the majority of the holders. I still don’t know why SVT have not upped the bid to spring the Axa stake, purchased it then gone to a simple 50% +1 share offer. They could than buy in the market and job done, 1706 x 110% is 1877 so we are talking about 52 p per share or given there are 4,138,902 shares in issue £2.1522m hardly a great deal to SVT.

[praipus] 11/1/2017 15:54

Ancala are probably not fit to run a public utility company for the reasons/questions I mentioned above in post #485

If there was any doubt they are now proving it with their actions and assumptions.

[redartbmud] 11/1/2017 14:49

Yes, but Ancala is the small guy. Have they been bullying Svt. Circumstantial evidence looks that way.

[redgog] 11/1/2017 12:18

Potential for a film?

Small guy against the big corporate bully?

I'll get my coat

[redartbmud] 11/1/2017 10:29

Conspiracy and murky waters in dark pools?
Smacks of a Shakespeare play.


red

[praipus] 11/1/2017 09:04

Good that DVW is on top of it.....

[linhur] 11/1/2017 08:35

A small stone may have been dropped into the pond following the Dee Valley Board announcement this morning!

445 recent transfers are being investigated in case they distort the outcome of the meetings tomorrow.

Looks like meetings will still be held and arguments will be heard next week at reconvened court meeting

Linhur

[exbroker] 04/1/2017 17:19

Greetings All
7000 shares traded in the closing auction at 1825, the buyer was bigger. I guess either an arb hoping that SVT won’t have as many votes as they need and up the offer to release the AXA/Aviva irrevocables or a friend of the company who wants to vote the stock for the deal. I am sitting on mine and will vote for the deal.

[praipus] 30/12/2016 16:32

ellie15, have you asked Ancala:

1)Why they can not make a higher offer ?

Note: Pennon PNN for example is trading on a similar PE ratio and they aren’t under offer. Implying that the current winning SVT offer is still low!

2) what guarantees can they give Dee Valley customers (and employees) in the event of Ancalas Pension Fund business blowing up?

3) what guarantees can Ancala give customers they wouldn’t just sell the company to someone else?

4) what benefit/s could Ancala offer Dee Valley employees?

5) what benefit/s if any can Ancala offer to Dee Valley customers?

6) What experience do they have of the water business?

7) why are they trying to take the company private? (i.e. make it less publicly accountable). Why have they had secret meetings? What have they got to hide?

[praipus] 30/12/2016 09:53

Hope everyone had a good Christmas and has a Happy New Year.

Ancala


SVT

[praipus] 23/12/2016 14:55

DVW results look good......

[redartbmud] 22/12/2016 21:10

Acceptances of Ancala's offer

Severn Trent notes that Ancala has received acceptances in respect of shares representing 40.38 per cent. of the issued Dee Valley Voting Ordinary share capital. The vast majority of these acceptances were obtained from shareholders who had signed irrevocable undertakings to accept Ancala's offer on 20 October 2016, prior to the announcement of Severn Trent's offer (the "Relevant Shareholders").

Neither the undertakings nor the acceptances prevent Severn Trent's offer from successfully completing for the benefit of all shareholders. The fact the undertakings had been signed by the Relevant Shareholders, and their acceptances would result, was known to Severn Trent before announcing the Scheme, and likewise was known to the Dee Valley Board before it decided to recommend and support Severn Trent's Scheme.

Severn Trent's Scheme will be approved if 75 per cent. or more (by value of shares held), and a majority in number, of shareholders present and voting at the court meeting vote in favour of the Scheme and if the related special resolution is passed at the general meeting.

The last paragraph is critical to the result.

[praipus] 22/12/2016 20:13

ellie15 may I ask how you make/made your living?

[ellie15] 22/12/2016 18:39

Irrevocable is at 10% above 17.06, SVT haven't listed the bid as final at 18.25
My opinion on SVT being a modern well run company, YTD and third quarter customer experience survey by OFWAT shows DVW as outperforming SVT in all areas.
For those who will benefit from cashing in on shares, I can see why SVT are the best option but it is purely financial, nothing to do with their performance which is clearly demonstrated as below that of DVW on a consistent basis, contrary to unsubstantiated opinions.

[exbroker] 22/12/2016 00:03

Hi Prapius
Chelverton have sold to Ancala so are out of the game. I am not sure if the irrevocable is at 10% above the 1550 or the 1706. Given they still count it I assume it’s above the 1706. I don’t think that SVT have said they are final yet so they may go a touch higher if they feel they might not get the votes they need. As they said in the RNS there is nothing to say that AXA or Aviva have to vote against the SVT scheme. It just means that the rest of the holders need to pull out the finger and get the votes in for the meeting. Given the volumes Oddo and the other arbs cant own more that about 2.5%, I know of one sitting on .99% who will vote for the SVT deal.