Delek Glbl Share Discussion Threads

[flying pig] 27/3/2009 18:49

Topvest,

I agree you are probably right.

However, I have taken some pleasure in writing to the NOMAD, the FSA and the independent directors.


I've also dropped a little note to both the Telegraph and The Times suggesting it might make a bit of a story. Oppression of minority shareholders and disgraceful bullying threatening to remove the listing etc

It is all too easy just to let it happen without complaint.

I recognise I am probably in a minority of one.

[topvest] 25/3/2009 21:39

Flying pig - just being realistic.

[topvest] 24/3/2009 20:54

I suggest you take a look at the likes of Brixton, Workspace Group, Safeland and many more - share prices on distressed property companies are trading at 10-20% NAV. In my view, this company is reasonably / moderately distressed and I'm happy to just be losing 40% my original investment. Assets are high quality, but debt is short term and massive. I will stay clear of leveraged property in the future, irrespective of tenant quality or security of lease. Learnt my lesson, albeit sold a lot of property companies at or near the top.

[flying pig] 24/3/2009 10:55

Also write to the NOMAD to complain and ask the non-execs for a rather better explanation of how they justify their fees?

[kenny] 23/3/2009 23:36

The following article from a paper today in Israel - surely it demonstrates we are being fleeced:

"Delek Global Real Estate is negotiating for £100 million to £120 million in advance payment from National Car Parks of Britain, which leases 127 parking lots from the Israeli company. DGRE belongs to Delek International Belron (81.5%), which in turn belongs to Yitzhak Tshuva's Delek Group (100%). DGRE could used the money to help it meet its liabilities this year and next, when it's supposed to repay about NIS 1.25 billion. NCP would also do well by the deal, because each year DGRE is entitled to jack up the lease price by as much as 3%. This is why the initiative came from NCP, not DGRE, sources near the deal say . (Michael Rochvarger)"

I think we should all write to the FSA, the financial press and London Stock Exchange and ask for an investigation, after all the whole company is being valued at £133m, not much more than the figure for one sale and leaseback type transaction. It all really stinks.

[topvest] 23/3/2009 21:35

The world has changed. Happy to accept 50p + the dividends already received; means I have lost 40% of my original stake, but leveraged companies like this are in trouble.
If you look at the price rights issues in the sector are going for, I think this is a fair offer.

[flying pig] 23/3/2009 19:34

Minority shareholders may now have a greater sympathy with the Palestinians.

Israeli oppression of weaker parties?

[flying pig] 23/3/2009 14:07

Certainly stitched up. One suspects that non-executive directors have been given a pay-off for not causing excessive trouble.

This is oppression of minority shareholders and reflects badly on the parent company, but do they care? Probably not.

I also think that it reflects badly on the professional advisers to the company.

If one is left as a minority shareholder there are certain steps that one can take to irritate the board. If a significant number of minority shareholders reject the offer, a much better one is likely in due course.

[kenny] 23/3/2009 12:30

Your vote may well count as they need 75% of those people who vote and they cannot vote their 85%.

Also, there is still a chance that someone may bid for the whole company OR make a tender bid for the 15% free float at a price well above 50p. For those reasons, I am holding awaiting developments.

[a0469514] 23/3/2009 11:21

My vote is not going to count for much. Aren't there any institutional holders who might kick up a fuss? You are right, Kenny, we have been stiched up and it is giving a nasty taste in my mouth. Maybe the bigger holders (if there are any) will try and do something about it.

Xylos

[kenny] 23/3/2009 11:10

You can vote against the offer of 50p but post delisting we would have unquoted shares where it might be some time before we received true value OR gamble that a vote against will force the holding company to come back with an increased offer. They may choose to delist and not make another offer.

They are taking a bank loan for £20m to buy out minorities and I am guessing the minute the take over goes through they will repay that from DGRE's own cash.

Minority shareholders have been stiched up - the Independent Directors should have negotiated a higher price, not stated they make no recommendation but are nevertheless puting the 50p offer to shareholders - totally defeats the role of independent directors. (Also the role of the Israeli fund buying in a few days before the takeover is announced; presumably to help the vote go through as well as make themselves some money).

Yet another AIM company where the main holders have been allowed to fleece minorities.

[a0469514] 23/3/2009 11:03

So we have a bid at 50p. That seems an outrageously low figure to me though at least I would come out in profit. Others on here probably will not be in that position and, I would guess, would be unhappy with a lot of the content of the rns.
The arm twisting of the parent company not to pay a dividend was clearly designed in my view to keep the share price down.
The threat to delist the company is outrageous.
The independent directors are totally spineless it seems.
The discount of the offer price to net asset value is ridiculous.

We appear to be geting mugged for our shares with a gun to our heads with no support from anyone.

Is there anything we can do?

Xylos

[topvest] 20/3/2009 19:49

No news on the bid at 50p.

[flying pig] 20/3/2009 17:58

Kenny I entirely agree, this is a brilliant lock away. I can live without the dividend, and the cash being generated can be used to either repay debt or buy properties from other distressed sellers. There are plenty of the latter!

[kenny] 20/3/2009 10:32

For 2008, net rental income before revaluations, swap writedowns and dividends paid was about 16.68p per share.

That's pretty impressive compared to the current share price. My conclusion is that it is well worth hanging on to this share - time will cure all problems including refinancing, hopefully!!!

Net rental income of 16.68p per share is serious money in the contect of the current low share price.

When and it is a big when, property stabilises this company is well placed as their policy seems to be to sell little and ride it out. As for recovery, a 10% recovery in property prices will see about 100p per share added to NAV.

[kenny] 20/3/2009 08:50

Net asset value at 188p has held up a lot better than I though - and that is after swap provisions. Therefore, a bid at 50p is out of the question.

The disappointment, for me anyway, is no dividend payment.

Patience needed with this one.

[paperclip3] 23/2/2009 14:21

The bid is coming back into this stock, Expect to see it higher over the next few days.

[flying pig] 16/2/2009 17:13

Unfair prejudice of shareholders under the Companies Act 2006

A recent decision has highlighted areas of potential exposure to, amongst others, shareholders, and also to directors and officers and their D&O insurers.

The case concerned improper attempts by a significant shareholder in a company to assert control over the company. The court held that this can amount to conduct which is unfairly prejudicial to the interests of the members of the company, or to some of the members. Further, the court may, in appropriate circumstances, order the shareholder who has caused the prejudice to sell his shareholding to the member who brings the petition.

BIT OF CASE LAW.

NB The Danger of waiting is that the non-execs and NOMAD recommend a dreadful offer. If they did what you waiting chaps do at that point? The horse has left the starting stalls and the race is underway.

[tom.muir] 16/2/2009 13:32

on the other hand there is much to commend the old adage ' get your retaliation in first'

[paperclip3] 16/2/2009 12:12

Grollfam, very sensible comment.

[grollfam] 16/2/2009 08:08

'flying pig'

We need to wait for the offer, or the next set of results before contacting anyone. Until then we need to be patient. Time is on our side as the holding company needs to repay our loan of 6 million by 31st of March, and we should get a dividend of 5,5p for the 6 months to Dececember....

[grollfam] 13/2/2009 08:09

guys, all your talk is about hot gas not property!!!! DGRE is a property company with prime located properties, long leases with strong tenants & fixed rates of borrowing for long periods. There are NO LTV risks & a NAV north of 2 quid. Lets rather focus of the attempted theft of our company at under 1 pound by DELEK REAL ESTATE /.......