Dee Valley Grp Share Discussion Threads

[praipus] 16/11/2016 13:44

Anyone else bid yet?

Welsh Water, United Utilities, they would both benefit from the efficiencies SVT mention as well as proximity.

[praipus] 16/11/2016 12:45

So it's you who's pushed the market over the current Takeover price? :)

No idea on counter offer, but might explain why the share price offer price going north of the takeover price. No trades at that level yet though according to delayed info on the LSE website.

[exbroker] 16/11/2016 10:58

Hi Praipus
I did not see that in the RNS so assume not, I have bought more today as I think there could be a counter.

[praipus] 16/11/2016 10:18

Good news. Wonder if shareholders will be able to elect for a loan note or SVT shares alternative to cash?

[topvest] 16/11/2016 07:48

New offer by Severn Trent then at 1705p. Will accept that. Be interesting to see if Ancala Fornia increase their offer now or walk away, given they have spent a lot of time and money on this. Still not an overly generous offer given the dividend yield at this price is 3.7%. Room for an offer at up to £20 if there is competition, but probably unlikely.

[topvest] 14/11/2016 21:34

Sorry, but isn't this a scheme of arrangement on the voting shares at least? It doesn't matter how you vote; if they get 75% everyone gets their money, but if its below 75% the scheme lapses. So, there is no compulsory purchase at all at this stage. It's like Journey Group; if the scheme of arrangement fails then they can try a normal cash offer, or walk away, but we are not at that stage here. I just didn't bother voting to be honest as it has the same effect!

[praipus] 14/11/2016 12:24

A chance a glimmer of hope, thanks Linhur.

Also a bit surprised there is no Loan note alternative.

Cant work out if its incompetence, inexperienceor impudence..

Left thinking if it's because Ancala can't manage a takeover!

If they cant manage a takeover with their alleged backgrounds they should not be given the chance of running anything as complex as a water only utility IMHO.

I can hear it now "oh we forget to check the nitrate level we were in London".....

Left feeling neither DVW, Ancala or the Government care about Long term and or Private Investors and certainly no rewarded for their loyalty and having the guts to leave their saving in shares.

Hoping to see compulsory acquisition prevented...

[linhur] 14/11/2016 11:32

Praipus

Ancala have indicated that they will compulsory purchase any dissenters.

The nasty situation is that the listing is to be discontinued from 5 December 2016 which is one day before the Scheme becomes effective.

You will need 10% of shareholdings + one share (413,891 Ordinary voting shares) to not accept the offer to prevent compulsory acquisition.

Best for non acceptors to vote against the resolutions at the 2 meetings to be held on 28 November 2016.

Linhur

[praipus] 10/11/2016 11:54

Ditto.

Does anyone know if the running of a dissenters register is mandatory?

[topvest] 09/11/2016 19:14

Yes a poor deal. Not much we can do but take the cash I expect. I did in part buy because of the prospect of a bid, but at this price I'd rather keep my shares.

[praipus] 08/11/2016 19:23

Did anyone see the TV series "The F..ing Fulfords"?

The family wealth axiom handed down the generations (500 years) was something like never sell an asset.

Especially one that grows in value and throws cash at you.

[praipus] 08/11/2016 08:31

Arrogance of the DVW board Aviva and Axa is staggering seems like "stuff you we're selling the company".

No strategic review,
No excessive valuation worth cashing in on,
No obvious environmental or political issue to duck out of.

Just appaling decision making.

Who wants work for a load of suits in a city "hedge" fund? I bet they really care about the employees.

[linhur] 07/11/2016 14:50

Topvest Praipus

I agree with you that I shall not be accepting this offer as it stands.

However Ancala Fornia are adopting a hard line and as the Board have accepted the Offer and have 40% acceptances from institutions, particularly Axa and Aviva it will be difficult to stop.

The General and Court meetings are on 28 November and it would be helpful to vote against the resolutions.

It should be noted that the offer closes on 5 December which is the same day as Dee Valley are delisted.

It would also appear that Hindsight Speculator may be a monitor on this board for the Offeror!!


Linhur

[topvest] 05/11/2016 16:38

I'm not voting for this deal. Suspects its a done deal, but I think its 20% lower than its should be.

[hindsight_speculator] 05/11/2016 14:55

Interesting points, none of which are wholly true IMHO.

The major inaccuracy is that there is an ultra low cost of sale in that the input commodity is free. Unfortunately this is not the case. Anyone abstracting water from the environment has to pay an abstaction charge to the Environment Agency. It applies whether you are a large utility or a householder with a borehole in the back garden. The EA regulates the quantity of water that can be abstracted for the benefit of the natural environment.

Abstraction costs are one of the most significant costs of running a water company (along with power).

Presumably you will be making your views on the offer price known at the EGM?

[praipus] 31/10/2016 16:10

Why didnt the board or exiting share holders try harder?

Offer for sale DVW:
* monopoly market,
* ultra low cost of sale
* government backed and regulated
* cash annuity style income
* Experienced work force
* 227,000 customers, possibilities to up sell other services and products
* input commodity, FREE
* oil gas and gold rights over undervalued free hold land

Under offer to day at half price....because the company broker and board have no sales skills or ability IMHO.

[linhur] 26/10/2016 10:41

El Oro would certainly not be very pleased with current offer.

One of many local consumers and shareholders who would not be pleased with current situation.

[hindsight_speculator] 25/10/2016 20:56

It's an investment vehicle - similar to an investment trust. Assume that the Board would already be aware of this holding even though below routine disclosure level of 3%.

[praipus] 25/10/2016 17:22

OMG is El Oro an exploration company?

Gold or Oil or both?

The DVW area is over a known gold producing area.....

Do the board read the RNS?

So low ball offer from unknown city boys.

DVW a consistently profitable and asset backed water company happens to be over a geological gold producing area and is being stalked by a gold explorer....errr...hmmm

[linhur] 25/10/2016 12:24

Thank you for your information hindsight_speculator

[hindsight_speculator] 25/10/2016 10:41

RCV is a proxy for enterprise value i.e. debt + equity. Ofwat use it to calcualte a return on capital.
Also RCV does not include a valuation of non-core earnings - primarily billing commission.

[praipus] 25/10/2016 08:58

Board actions prejudicial to share holder value?

[linhur] 24/10/2016 22:55

Can any one explain why the offer of £71m is lower than the Regulatory Capital Value of £76m (31 March 2016) when recent water co offers have been at a premium to RCV ?

Linhur

[hindsight_speculator] 24/10/2016 17:54

A referral to MMC (now CMA) is unlikely as no merger is taking place (the acquirer does not already own a water company).

Also the acquisition does not prejudice Ofwat's ability to make comparisons across companies for the benefit of customers, so Ofwat will not recommend referral.