Dragon-ukrainian Propert... Share Discussion Threads

[rjmahan] 03/5/2020 22:25

Cheers Charlie - futile gesture now Lars has sold his shares. Can't say I blame him.

[charlie] 29/4/2020 15:09

Thanks very much for the post and blog. Completely agree. I have voted against.

[rjmahan] 27/4/2020 23:20

Post on this - can everyone who is paying attention please vote No at the EGM ?

10p a share is under half NAV.



Cheers

[discodave4] 16/4/2019 22:50

Nortic 007 is a troll, beware.Oops wrong board

[smithie6] 13/9/2017 17:10

slowly it keeps grinding upwards.

and hopefully a jump at next results

[smithie6] 25/8/2017 09:52

up trend continues nicely

much more to come imho....over time....(the investment mgr didnt buy loads in order to lose money !!)

real assets and potential...way undervalued here imo

[centipede] 24/7/2017 13:17

I have been informed by my broker that
‘The Mandatory Cash Offer made by Dragon Capital Investments Limited (DCI) for the whole of the issued and to be issued Share Capital of Dragon-Ukrainian Properties and Development plc (DUPD) not already owned by the Dragon Capital Group, has become wholly unconditional on 18 July 2017. In addition, the Offer has been extended for acceptances.’

You can get various documents at:
www.dragon-upd.com/investor-information/important-information/rule-9-offer

Looks to me as though the offer significantly undervalues the company, and that DCI must not have got the 50% they need.
I am personally hanging onto my shares.

[sophia1982] 12/7/2017 12:01

The circular does not contain any major detail.
However, it is good that the BOD is telling shareholder how undervalued DUPD is.
I think they are trying to put pressure on Dragon to raise their offer.

Reading through the circular, it would seem that a 30% premium to the undisturbed price would be not great but at least more acceptable. That would imply at least an offer of 18p.

[ih_618510] 12/7/2017 11:12

Ah great, thank you!

[jbfnfn] 12/7/2017 10:33

alch00

Circular is on the website now under Rule 9 offer

[alch00] 12/7/2017 08:48

I can't find the circular anywhere yet though.

[jbfnfn] 12/7/2017 08:31

Ok They put out another RNS after I departed for the pub.

There is a circular available somewhere.

[jbfnfn] 11/7/2017 18:21

Whats going on?

RNS on 29/6 said

The Independent Directors will be writing to DUPD shareholders with its formal response to the Offer Document in due course and by no later than 10 July 2017

RNS today 11/7

"Independent Directors" now expect to be writing to shareholders later today with its formal response to the Offer Document. A further announcement will be released when this is published.

The price is up today any guesses why?

I have few of these, but I bought at 20p+ so I'm underwater.

I'm just a penny punter but I wonder if I've missed some information somewhere?

[sophia1982] 04/7/2017 09:59

Hi Centipede,

thank you for your comments.

I have always believed that DUPD's NAV is "understated"... See my post 355.

I find it quite amazing that the company is not publishing the offer document on its website.

Looking at the shareholders list, with this offer I think they have no chance to get to 75% which would allow them to delist.
So maybe we are just at the beginning of a process.

[centipede] 03/7/2017 16:33

The results for the year ended Dec 2016 indicate a Net Asset Value of 47.7 million USD – roughly equivalent to 37 million £s. (

There is no leverage, and a cash balance of 7.8 million USD.

The Offer from DCI ‘values the existing issued share capital of DUPD at approximately GBP16.4 Million’

Why would any shareholder take less than half the value of the company, given that there is also no debt and a positive chunk of cash?

I suppose the key is how much the company is actually worth. Hopefully the directors will be telling us soon.

[centipede] 03/7/2017 15:31

Hi sophia1982, all I have is the notification sent by my broker - see below. I assume that my broker received the document and that they simply copied the relevant bit/s.

The tone is somewhat threatening (by implication at least) - using terms such as 'mandatory', and saying that the offer only holds until they have got control of 50%. They're also negating the impact of the dividend by saying this will reduce the 'offer'.

The offer comes from DCI (NOT from DUPD), and I also see that the independent directors of DUPD say that:
"The Independent Directors will be writing to DUPD shareholders with its formal response to the Offer Document in due course and by no later than 10 July 2017.
DUPD shareholders are strongly advised to take no action for the time being.Further announcements will be made as and when appropriate."

Again, this all seems dishonest to me. Write down the company assets, then buy it cheaply.

I wonder if any 'pressure' is being put on the independent directors?



"MANDATORY CASH OFFER
The Board of Dragon Capital Investments Limited (DCI), a wholly owned subsidiary of Dragon Capital Holdings Limited
incorporated in Cyprus, has announced that it has increased its Mandatory Cash Offer for the whole of the issued and to be
issued share capital of Dragon-Ukrainian Properties and Development plc (DUPD) not already owned by the Dragon Capital
Group. The Offer values the existing issued share capital of DUPD at approximately GBP16.4 Million. The Offer remains
subject only to an acceptance condition at a level of DCI needing to acquire or agree to acquire (whether pursuant to the
Offer or otherwise) DUPD Shares representing more than 50 per cent of the voting rights then normally exercisable at a
general meeting of DUPD. If any dividend or other distribution is authorised, declared, made or paid in respect of DUPD
Shares on or after the date of this announcement, the Offer Price shall be reduced by the amount of any such dividend or
other distribution.
Terms: GBP0.15 per DUPD Share.
If you would like to accept the Offer, please notify us by secure message or telephone no later than 5pm on 11 July 2017."

[sophia1982] 03/7/2017 12:18

Can anyone post a link to the offer document? I cannot find it. Thank you

[sophia1982] 14/6/2017 11:39

I am not talking about you. You have defended your thesis

[rjmahan] 12/6/2017 13:27

very kind of you to say so :-)

[sophia1982] 12/6/2017 12:25

It is also interesting that some very good investors have invested here and they have done nothing to defend themselves

[centipede] 11/6/2017 21:52

This looks to me as though I am being robbed.
Devalue the company, then get it on the cheap.

I must never, ever again invest in a foreign company on AIM.

The poor reputation engendered by such actions means that other genuine companies won't be able to raise funding. In the end, we all lose.

[rjmahan] 08/6/2017 09:29

Arch looks like you were right and I was wrong...

[sophia1982] 05/6/2017 11:05

I don't think it is the way you say

[alch00] 04/6/2017 22:44

If I read Rule 9 of the Takeover Code correctly (big if), they're only required to follow up on the offer (i.e. actually buy the shares) if enough shareholders consent to bring their holdings above 50%. So if they don't actually want to buy the rest of the shares, they can make a bid of 13p. Then if less than 18% of the other 67% shareholders say "yes", they won't be obligated to buy anything.

I expect they'd like to buy the other shareholders out - after all, they acquired 33% already so they must think it's undervalued. But if not, then it's not guaranteed that we'll be able to sell to them at 13p.

... *if* I understand Rule 9 right :-)

[rjmahan] 02/6/2017 17:49

I'm confused on tax - it is Cyprus domiciled and there is a double taxation treaty between Cyprus and Ukraine so in theory 0% tax.

However they state:
"(c) Litigation with tax authorities The Company’s investee Grand Development LLC (Green Hills project) is involved in litigation with tax authorities with respect to penalties of USD 437 thousand imposed as a result of tax inspection.
Respective provision for the full amount of penalties has been recognised in the investee’s accounts as at and for the year ended 31 December 2015".

If there are disputes - I would expect there to be some tax to pay therefore losses to carry forwards...