Oakley Share Discussion Threads

[skyship] 11/10/2016 13:56

Specto - always a good idea to look for the negatives as well as the positives.

As for Time Out, there is both the equity and the £6.2m mezzanine loan. Combined value of c£48m is c12% of net assets - c25p of the 215p at 30th June.

So collapse there would be a pain, but not a killer. I too would like to see it gone however...

[spectoacc] 11/10/2016 13:25

OCL hold c.24% of Time Out, with a value of c.£42m. T.O. themselves aren't short of cash, they aren't heavily indebted, but they are loss-making now, previously, and into the near future. They lost £18m last year, expected to lose £15m this, and another £19.5m next year.

On the plus side, those aren't necessarily cash losses. On the negative side, they're continually spending to grow via acquisition. Digital revenues heading towards 50% of t/o but clearly costing a hit to the bottom line to get there. Print revenues shrinking & can surely expect most to eventually disappear.

Feels like it will take a continuation of the Goldilocks market for T.O. to succeed - plenty of co's listed in the US on similar "future" valuations and T.O has brand, progress in digital, & some really interesting angles like in the RNS above.

But - market cap £185m & isn't something I'd invest in, so I'd still like to see OCL sell down some of their holding to make them less affected by eg a "p"/w from T.O.

I've half an allocation to OCL so far & watching for buying more, but as always am trying to assess the negatives rather than just the positives (discount being a major positive).

[spectoacc] 10/10/2016 07:32

An RNS this morning from Time Out - have started digging into TO a bit, will post when I've finished rather than further clog the OCL thread as I go along.


"Time Out associate Flypay secures GBP3.5m investment from JUST EAT
London (10 October, 2016) - Time Out-associate company, Flypay, the market leader in innovative, state-of-the-art technology for the hospitality industry, announced today it has secured a GBP3.5m investment from Just Eat, the leading marketplace for online food delivery.
Time Out, the global multi-platform media and e-commerce business with food & cultural markets, will hold a stake of 38% in Flypay after the investment from Just Eat.
The investment in mobile payment app Flypay is part of Time Out's strategy to monetise local businesses and plays an important role in the Group's transformation into a global multi-media and entertainment business. Time Out's funding and the latest investment from Just Eat will enable Flypay to accelerate its growth plans for its new Flyt platform. The technology platform has the potential to transform digital experiences for operators and consumers alike across the hospitality industry and particularly the casual dining sector, as it enables integration between numerous technology based services for restaurant, pub and bar operators."

[konkel] 05/10/2016 09:50

Not really...but Woodford, Ruffer and Invesco were the major backers of the latest fundraising (@165p) so unlikely it's any of them. The further weakening of £ should also be helping NAV so I'd guess they're now trading at c.40% discount. Look what happened to SVG!!

[spectoacc] 05/10/2016 09:34

A dividend - or as Skyship suggests, a discount control mechanism - would certainly help. They're not short of cash, though as has also been pointed out above, they're not short of commitments either, so may be wanting to hold on to maximum liquidity.

@konkel - possibly. Any theory as to who's doing the selling?

[orinocor] 05/10/2016 09:25

Why does this company not pay a dividend? That and its structure means it's always going to a bigger than normal discount.

[konkel] 05/10/2016 09:17

My guess is Woodford adding.

[spectoacc] 05/10/2016 09:17

Missed those two 500ks. Def going to be due some Holdings RNS.

15k O sell at 130 just now seems a bit harsh - there's 40k of MMs above that price.

[spectoacc] 04/10/2016 19:47

It's tightly held, be interesting to see who the seller (& of course, buyer) is.

[skyship] 04/10/2016 17:09

Hopefully the tap now cleared with those large sales @ 134p, inc. a put-through of 500k @ 134p to 134.268p...

[spectoacc] 04/10/2016 16:11

"Tommo effect" wearing off perhaps. Not one I've held but got half an eye on it - would feel a lot more comfortable if Time Out was sold or reduced. [Edit - agreed re discount control, they've got the cash & would be highly NAV-accretive]. [Edit #2 - a fair few blocks going through at 134, that's not IC readers selling! Wonder who is.]

[skyship] 04/10/2016 15:37

Took a nice turn last month, selling out @ 141p. Unfortunately, after the mid-Sept Interims decided to buy back in at 144.5p!

Whilst my 7 other PE Trust holdings are doing well, with some streaking ahead, OCL are once again sinking down toward a 40% NAV discount.

About time they set up a Discount Control Mechanism.

[paleje] 06/9/2016 16:06

ST reco'd OCL today, he's tipped them previously, his conclusion:-

Moreover, after factoring in the €44m cash proceeds from the Parship transaction, I estimate cash and interest receivables now account for 77p a share of Oakley’s top-end spot net asset value of 229p, so in effect its private equity portfolio, including a retained interest in Parship, and the holding in Time Out Group (TMO:142p) are being attributed a value of only 67p in Oakley's share price, or 56 per cent below their combined book value of 152p.

That's a huge share price discount for a company that posted a 33 per cent positive return on its investment portfolio in 2015, and has just made a 2.3 times cash return on its equity investment in Parship. True, Oakley’s shares are flat-lining on my recommended buy in price in my 2016 Bargain shares portfolio, but it would appear that investors are now warming to what I see as a clear cut investment opportunity. Buy.

[888icb] 05/9/2016 21:21

Moving in the right direction on today's very good news which illustrates how much value there is in this portfolio. Massive discount to real value. Volume only 166000 so not on many radars yet.

[contrarian joe] 05/9/2016 20:55

Regulatory (RNS & others)

Oakley (LSE:OCL)
Intraday Stock Chart
Today : Monday 5 September 2016

Click Here for more Oakley Charts.
TIDMOCL

RNS Number : 8869I

Oakley Capital Investments Limited

05 September 2016

Oakley Capital Investments Limited

Oakley sells partial stake in PARSHIP ELITE Group to ProSiebenSat.1 Media SE

-- Transaction values the business at EUR300m, representing a return of 3.6x MM on original investment and an IRR of approximately 150%

-- Oakley retains an ongoing stake in the business to benefit from further growth and the value of ProSiebenSat.1 ownership

Oakley Capital Investments Limited(1) (AIM:OCL, OCL, the "Company"), has today been informed that Oakley Capital Private Equity II(2) ("Fund II") has reached an agreement to sell a controlling stake in PARSHIP ELITE Group (the "Group"), a leading online dating service in the German-speaking world, to ProSiebenSat.1 Media SE ("ProSiebenSat.1"), with Fund II and existing management retaining stakes totalling just under 50% of the Group.

The transaction values OCL's indirect economic interest in PARSHIP ELITE Group at EUR67 million, including its expected net cash returns of approximately EUR44 million. This will result in an expected uplift of GBP25 million (77%) over the carrying value reported on 31st December 2015, equivalent to a 9.4 pence per share increase to the interim NAV range announced in OCL's NAV trading update released on 4 August 2016. (GBP/EUR: 1.19)

This deal means that, since the initial acquisition 16 months ago, the equity investment has generated a 2.3x cash return and a money multiple of 3.6x overall, including Fund II's retained stake in the Group. In addition OCL provided GBP5.2 million of debt to PARSHIP ELITE Group, which is to be repaid as part of the transaction.

A new strategic investor for the rapidly growing PARSHIP ELITE Group

ProSiebenSat.1 is acquiring its interest in PARSHIP ELITE Group based on an enterprise value of EUR300 million. Fund II will receive gross proceeds of EUR129 million and retain a significant minority stake in the Group, providing OCL and other Fund II investors with participation in further potential value upside.

Over the 16 months under Fund II's ownership, PARSHIP ELITE Group has delivered strong organic growth and at the same time has consolidated its position as a leading player in the online dating market, through the acquisition of Elite Partner, signed just six weeks after the initial PARSHIP investment.

Peter Dubens, Director of OCL, commented:

"The sale of this stake in PARSHIP ELITE Group locks in an impressive return for OCL and a continued stake in a fast growth business.

Oakley Capital has a successful history of working with ProSiebenSat.1 with both parties currently invested in online consumer business, Verivox. We are excited by the opportunity that Fund II has created to once again partner with ProSiebenSat.1 and the management of PARSHIP ELITE Group, and believe that the value of our retained stake will be significantly enhanced within the ProSiebenSat.1 group of companies by allowing PARSHIP ELITE Group to leverage ProSiebenSat.1's leading position in the media sector."

Rebecca Gibson, Partner of Oakley Capital Private Equity, commented:

"The strong growth of this company is a further demonstration of Oakley's expertise in the online sector and its ability to identify value generating opportunities. We have worked in partnership with the management team to drive organic growth whilst encouraging ambitious strategic acquisitions that have brought scale and operational leverage. It also highlights our ability to deliver impressive returns in a relatively short amount of time, and we are highly confident that we will continue to see the business go from strength to strength. We would like to thank the PARSHIP ELITE Group management team, and look forward to working with them and ProSiebenSat.1 in creating further growth and value."

Completion of the PARSHIP ELITE Group transaction is pending subject to approval from the German and Austrian cartel authorities.

- ends -


For further information please
contact:

[skyship] 16/8/2016 13:43

OCL 141p Bid...so, what to do now?

Well, for me OCL was always a play on an anomaly. The price was just too cheap in a rallying Market.

So, personally I've banked the 9% turn and just rue the fact that I only had a 5% allocation....why didn't I buy more?....20:20 hindsight of course...

The story still stands, if Time Out is sold on a bid, then these will instantly be 160p plus.

Not my problem now....my problem is that after taking a couple of turns I now have 20% CASH out of the game...so need to find another anomaly....

[888icb] 16/8/2016 12:10

OCL now No 18 on the riser board up 9.7%

[888icb] 16/8/2016 09:53

It has woken up this morning now 137p

[digger61] 15/8/2016 15:19

Maybe I am wrong.....but someone is selling those 440000....

[888icb] 15/8/2016 14:35

There have been about 70 trades today and the volume is 440000. So there is some interest.

[hugepants] 15/8/2016 14:33

yes edging up here. Picked up a few last week.

[888icb] 15/8/2016 12:28

ST gave it a very good write up as you say for the third time recently. Perhaps alot of people don't get it but I like the value case.

[digger61] 15/8/2016 09:42

Given it has had a very good write up on Friday in the IC there has been no movement in the share price this AM I am inclined to think that the discount is justified. Is this just another case of a group of directors running other peoples money for their own benefit. Little ownership by directors yet I am sure they are handsomely rewarded by salaries and benefits all to maintain a 40% discount....go figure.

[contrarian joe] 12/8/2016 21:35

Taken a stake in these,a very concentrated portfolio which may well be the reason for such a wide discount,also Rambutan2 makes some valid points,main reason apart from the 40% discount is profits are expected to explode this year bringing the p/e down to 5.5, with a good chunk of their Assets in Euros should be another kicker.

[888icb] 09/8/2016 08:56

ST is again highlighting the massive discount to NAV. The case he makes is pretty compelling and I have bought a few more this morning.