Delek Glbl Share Discussion Threads

[grollfam] 19/5/2011 13:30

Tendered 100% of ALL shares held, 19.34% of shares were taken from my various accounts, waiting for cash balances to confirm cash received.......

[tiltonboy] 19/5/2011 13:12

How did you manage to tender 19.34%!! I only had a fraction more than my basic entitlement accepted.

[grollfam] 19/5/2011 13:06

Have received my cash...Tendered 100% of all my shares in 4 accounts & sold
19.34% of my total holding @ £1.26p......Very happy, as this is nett of substantial dividends received last couple of years....

Once the Bell tower building is sold, we will be able to tender another wack of shares......

[kenny] 16/5/2011 14:38

16 May 2011
Delek Global Real Estate plc ("DGRE" or the "Company")

DGRE completion of Buyback

The board of directors of the Company (the "Board") announces that the Buyback (as notified to shareholders of the Company (the "Shareholders") pursuant to the Buyback documentation dispatched to the Shareholders and the announcement issued on 18 April 2011) has completed today, 16 May 2011.

Pursuant to the Buyback, 30,158,707 ordinary shares in the share capital of the Companywere purchased by the Company from its Shareholders, equivalent to approximately 11.38% of the entire issued share capital of the Company prior to the completion of the Buyback. The total consideration paid to the Shareholders was approximately £38,000,000.

[tiltonboy] 16/5/2011 14:05

Money in today. Had 11.47% of my shares taken off me.

[paperclip3] 14/5/2011 08:17

Any news anyone?

[tiltonboy] 05/5/2011 11:01

Fingers crossed that they have received proceeds.

[kenny] 28/4/2011 09:12

Rather belatedly, the share price has been marked up to 100p at JP Jenkins, not that I would suggest anyone sells at such a low value. Not too sure there are any shares available to buy at that price.

[grollfam] 19/4/2011 10:59

I am sure the funds will be available....They have refinanced bell tower in Canada & freed up 60 million CAN dollars....Should the sale of the property go through @ 290 -300 million, as reports in the Canadian press indicates, then there should be another 60-80 million Can Dollars available to DGRE to do buy backs/Special Dividends...

[tiltonboy] 19/4/2011 10:28

Let's just hope the funds are available and the buy-back happens. Only 11% of our holdings, but at least it's a start.

[kenny] 18/4/2011 19:20

Great, many thanks.

[grollfam] 18/4/2011 14:42

As I thought, a buy back @126p, at close to NAV.....

DGRE approval of exercise of buyback



The board of directors of the Company (the "Board") announces that pursuant to an extraordinary general meeting ("EGM") of the Company held on 14 April 2011, by which the Company's shareholders (the "Shareholders") resolved to empower the Board to authorise the purchase by the Company of ordinary shares in its share capital under such general terms as further detailed within the letter from the chairman and the EGM notice dispatched to the Shareholders on 23 March 2011, the Board has resolved to purchase up to 30,158,730 ordinary shares in the share capital of the Company from its Shareholders equivalent to approximately 11.38% of the entire issued share capital of the Company at a price of £1.26 per ordinary share (the "Buyback"). The Buyback is conditional upon receipt of certain funds by the Company no later than 5 May 2011 (so that if such funds are not received by that date, the Buyback shall not be carried out).

Full details of the Buyback and the action requirements from the Shareholders may be found in the Buyback documentation dispatched to the Shareholders of the Company today.

[tiltonboy] 15/4/2011 16:05

I e-mailed the company today, and had a swift response that an RNS would be following...didn't say when though!

[grollfam] 14/4/2011 08:31

Do not expect any news other than all resolutions will be passed.....

Once the 60 mil Can Dollars is received, we will then have an indicative offer of a special Dividend or a buy back offered to 100% of shareholders....

DRE have already confirmed that they will tender 100% of their share of any buy back , plus top up any shares not tendered by other shareholders, so we can expect a buyback at close to NAV.....

[flying pig] 14/4/2011 07:15

Anyone going to meeting at 11.00am in Jersey today?

Probably it will not be very well attended but can we expect any real "news"?

[paperclip3] 13/4/2011 11:36

I'm not sure what the majority shareholder has in mind. However, we don't have long to wait to find out

[grollfam] 12/4/2011 18:08

Guys,
DRE need cash....We can thankful that they own 88% of the equity & therefore have not sucked out cash in management fees, but have up to now paid dividends....
The reason for buy backs is to return capital to ALL shareholders, who will each be given a choice whether to tender shares or not....

[tiltonboy] 12/4/2011 17:44

Kenny,

Why would the majority shareholder try to line the pockets of a small minority holder?

If the majority shareholders had not committed to tendering all their shares, and had they not had a desperate need for the money, then I might also have been cynical...but I just can't see it.

At least we have a choice to accept or decline...unlike a dividend, where you get the money anyway!

[flying pig] 12/4/2011 17:00

Kenny,

I think your suspicious mind is probably correct but all we can do is wait and see.

I rather share your strategy and think for maximum wealth one should sit on one's hands in the short term. Some shareholders will want out asap - and some may not!

[kenny] 12/4/2011 16:29

Just to highlight the single most important reason to believe the buybacks are likely to prove to be a ruse - if all shareholders are not to benefit equally why not pay the money as a dividend rather than a buyback?

Answer; because if you do pay it as dividend(s) all shareholders do benefit pro rata!

[kenny] 12/4/2011 16:18

Great discussion. However, I still believe that the buy-backs will be pitched at low but improving figures. Making low tenders has the dual purpose of a) giving some cash to DRE, which it desperately needs, and b) enhancing the value of Mr. T's 3% holding in DGRE. Mr. T can then use cash to subscribe for further rights issues by DRE content in the knowledge that that cash outlay is compensated by an increase in the value of his shareholding in DGRE.

Of course, I am pre-judging this buy-back as a ruse but the majority holder has a history of trying to use value belonging to minority shareholders in DGRE to improve its dire financial position.

If the buy-back is pitched at 126p then that offers stated NAV to exiting shareholders as well as to DRE itself. However, I suspect the offers will be no where near that figure. Therefore, for 2011, I am budgeting for no further income from DGRE – whether by way of dividends or buy-backs. After 2011, I think that DGRE's remaining shareholders will be extremely well rewarded for their patience.

[grollfam] 12/4/2011 10:05

Guys,
Whats also important is that every time DGRE sell an asset there are costs relating to the breaking of the fixes, unless they sell the legal entity which owns the physical property & the buyer inherits the loans plus the fixes...

[tiltonboy] 12/4/2011 09:35

paperclip,

I don't disagree, but if events unfold in short order, the level to which we benefit will diminish accordingly.

[paperclip3] 12/4/2011 09:28

Tiltonboy, I'm sure you have a point. But every week that passes is to our advantage. Why? The trend in swap rates has been up for some time. And, the swaps curve is upward sloping; so, as time passes, other things being equal, the cost of unwinding swaps declines.

[tiltonboy] 12/4/2011 08:38

Kenny,

The problem as I see it is that we will not necessarily benefit from the Swap position for two reasons. For starters, interest rates may not go up as soon or as far as would fit our timetable, which leads into my second point that the Swap position will be unwound on the sale of the properties and repayment off debt. If that is going to happen in relatively short order, any benefit will be minimal.