Dunedin Enterprise Inves... Share Discussion Threads

[damanko] 30/3/2012 10:46

Relevant dates etc:

The expected timetable for the Tender Offer is as follows:
2012

Latest date and time for receipt of Forms of Direction for General Meeting
5.00 p.m. on Monday, 16 April

Latest time and date for receipt of Forms of Proxy and appointments of proxies utilising CREST electronic proxy appointment service for General Meeting 12.30 p.m. on Thursday, 19 April

General Meeting 12.30 p.m. on Monday, 23 April

Latest time and date for receipt of Tender Forms and TTE Instructions in CREST for Tender Offer 3.00 p.m. on Monday, 23 April

Record date for Tender Offer close of business on Monday, 23 April

Result of Tender Offer announced Tuesday, 24 April

Payments through CREST made in respect of Shares held in uncertificated form successfully tendered Friday, 27 April

CREST accounts settled in respect of unsold tendered Shares held in uncertificated form Friday, 27 April

Cheques despatched in respect of Shares held in certificated form successfully tendered by Monday, 30 April
Balancing certificates despatched in respect of unsold tendered Shares held in certificated form by Friday, 4 May

[damanko] 16/2/2012 17:01

Good point. It may. And let's see what the market reaction is - which will of course set any floor, ceiling - whatever.

[seekerofvalue] 16/2/2012 16:56

damanko, DNE's tender offer of £4.75, is very generous. Do you think that could put a floor in the shares? Of say less than 25% discount to nav.

[damanko] 16/2/2012 12:51

Looking at reaction since I wrote the above, I reckon the market is doing the math.

[damanko] 16/2/2012 11:53

In fact, there seems to be a certain "No brainer" element about this tender offer. Share price now. £4.75 cash to be offered for 10% of shareholding. Bid price today: £3.78. As our American cousins might say: Do the math........

[damanko] 16/2/2012 11:39

DUNEDIN ENTERPRISE INVESTMENT trust plc

DISPOSAL AND PROPOSED TENDER OFFER

Disposal

Dunedin Enterprise Investment Trust plc (the "Company") is pleased to announce that it has sold its entire investment in SWIP Private Equity Fund of Funds II plc ("SWIP PEF") to a number of third parties for an aggregate cash consideration of €17,372,000, equivalent to approximately £14.55 million. This consideration equates to a 8.0% discount to the Euro value of that investment as at 30 September 2011 (being the last date as at which the Company's unaudited net asset value has been calculated).

This transaction represents the first step in enacting the change of the Company's strategy to focus on funds raised by Dunedin Capital Partners investing in the UK as well as returning cash to shareholders, which was approved by shareholders at a general meeting of the Company held in November 2011.

Proposed Tender Offer

In accordance with the Company's distribution policy announced on 1 November 2011, the Board is proposing to return approximately £14.31 million of the proceeds of the sale of the Company's investment in SWIP PEF in cash to shareholders via a tender offer (the "Tender Offer").

It is envisaged that the Tender Offer will be to purchase up to 10% of the ordinary shares currently in issue at a price of 475p per share, equivalent to a 10.7% discount to the adjusted net asset value per share as at 30 September 2011 (being the net asset value per share as at 30 September 2011 adjusted to value the Company's investment in SWIP PEF at the price at which it has been sold). The Company's unaudited net asset value per share as at 31 December 2011 is expected to be announced on 1 March 2012.

All shareholders on the Company's register of members at the close of business on the record date for the Tender Offer will have a basic entitlement in the Tender Offer, pro rata to the number of ordinary shares held at the record date, and will be entitled to tender ordinary shares up to their basic 10% entitlement and also to tender additional ordinary shares. However, any such excess tenders above the basic 10% entitlement will only be satisfied, on a pro rata basis, to the extent that other shareholders tender less than their aggregate basic 10% entitlement. Ordinary shares purchased by the Company under the Tender Offer will be cancelled.

The board expects to publish a circular to shareholders, setting out the terms and conditions of the Tender Offer and instructions on how shareholders may participate in the Tender Offer, in March 2012. That circular will also include a notice convening a general meeting of the Company at which the requisite shareholder approval to enable the Tender Offer to be implemented will be sought and which is expected to be held in April 2012. It is anticipated that shareholders participating in the Tender Offer will receive their realisation proceeds by 30 April 2012.

[damanko] 16/2/2012 11:38

Been a disappointment for several years, but the forthcoming tender offer - giving £4.75 to holders for up to 10% of their holding - bodes well for the future. Guts of the tender offer printed below.

[skyship] 11/12/2011 17:28

I have started a Private Equity thread ("PE"):



I do hope that readers will bookmark this new thread and share their knowledge and expertise over there from time to time.

[pvb] 05/10/2008 19:27

According to the FT there is now a large discount on these. Mind you, that may just mean the portfolio is expected to be marked down in these stressed out times.

In the Outlook section of the recent interim Report the generally positive outlook was tempered by the sentence "The ability to take advantage of these opportunities will depend upon the continued availability of debt finance."

[analyzer] 04/4/2007 13:55

Nice little rise today ..... is this the start of another rerating ?

[analyzer] 02/9/2006 08:11

Trust Dunedin Enterprise to beat stock market downturn
SCOTT REID - BUSINESS EDITOR ([e-mail])
DUNEDIN Enterprise, the Edinburgh-based investment trust which specialises in backing management buyouts and buy-ins, is expecting to buck the stock market downturn after reporting another strong set of full-year numbers.

The trust, which is listed on the London Stock Exchange and managed by Dunedin Capital Partners, banked some £70 million in the year to the end of April after off-loading a series of investments, including its majority stake in Dalkeith-based diary and personal organiser business Letts Filofax. Letts, which has more than 500 staff worldwide, with 315 at its manufacturing base in Midlothian, was sold earlier this year for £45m to London-based venture capitalists Phoenix Equity Partners. It had been owned by Dunedin and a Letts management team since a £12.2m MBO in 2000.

Dunedin Enterprise said the string of disposals together with the AIM flotation of Manchester-based asset-based lender Davenham had generated a profit of £24.1m over valuation at the start of the financial year.

The trust said the scale of disposals during the period was such that realisations in the current year would "inevitably be at a lower level".

Meanwhile, investments in 2005-6 totalled £21.6m, with the largest single deal being the £7.5m used to back an MBO at Zenith Vehicle Contracts.

Edward Dawnay, chairman of Dunedin Enterprise, told investors that the trust's net asset value - a key measure of performance - rose 19.7 per cent in the year while the share price increased by 32.3 per cent.

He drew a "favourable" comparison with the 25 per cent upturn in the FTSE Small Cap Index over the same period.

Mr Dawnay added: "In the past year, continued economic growth and low interest rates have supported a rising equity market and this in turn has resulted in a strong private equity sector. Dunedin Enterprise has been well placed to take advantage of this favourable climate.

"The performance of the portfolio overall continues to be strong and profitability in the underlying investments continues to grow.

"Economic conditions in the UK are favourable for the time being and I believe the outlook for Dunedin Enterprise remains positive."

Founded in 1983, Dunedin Capital Partners operates throughout the UK from its offices in Edinburgh and London. The firm, which changed hands itself in a management buyout in 1996, specialises in financing management buyouts and buy-ins with a deal size of £10m to £50m.

Dunedin Enterprise was recently named the best private equity trust in Money Observer Magazine's Annual Investment Trust Awards.

This article:

Last updated: 20-Jun-06 11:40 BST

[analyzer] 02/9/2006 07:51

Investment Trust (1987) - To achieve substantial long-term growth in its assets and capital gains from its investments.

The trust specialises in the provision of private equity finance for management buyouts within the UK. The emphasis is to invest in £10-50 million management buyouts where superior returns can be achieved. The companies in which the trust invests are principally management buyouts of profitable, cash generative companies with strong growth prospects and a strong market position.

The trust aims to take a lead equity role in all transactions and will therefore normally have a substantial equity position. To ensure that management maximises shareholder returns, the trust is represented on the board of the companies in which it invests. Management teams will be assisted by the trust's board representative to meet strategic objectives, which may involve an element of restructuring or growth through acquisition. The overall objective, over a three to five year period, is to achieve an exit either through a trade sale, a secondary buyout or an initial public offering.

From Trustnet: Price 415.25 (p) 01-Sep-06; NAV 495.05; Discount 16.1%; Gearing as at 28-Apr-06 100 %

www.dunedinenterprisetrust.co.uk