Dewhurst Share Discussion Threads

[cockerhoop] 07/10/2016 20:24

Many thanks your response is appreciated.

Point taken, 'driven' was clearly overstating your inference.

[gengulphus] 07/10/2016 15:46

Thanks for that. I should also point out that the directors and other family members also own a decent slug of the Non Voting Shares may not be as driven as you suggest to disadvantage the 'A' holders.

I only suggested that they might have an interest in that direction, not how strong an interest it would be - so I really don't see where you're getting that "as driven as you suggest" from!

Another possible scenario could conceivably be share buybacks of the 'A' increasing family ownership to a point whereby they could introduce a single class of shares and still maintain control of the company.

In this hypothetical situation I imagine a similar comparability test would be applied on the merging of share classes?

I don't think that would be a matter for the Takeover Code/Panel, as there wouldn't be any takeover involved. But any such merging of share classes would require the consent of both T and A shareholders in separate class meetings, so could only be done on terms acceptable to both groups. For the purposes of getting consent to that sort of thing, the A shareholders do have votes - an exception to the normal rule about them being non-voting that is written into the company's Articles of Association ( see section 8 of ).

Having such an exception is basically essential to making non-voting shares work - without it, holders of voting shares could easily drive through all sorts of reorganisations of a company's share capital that rendered the non-voting shares worthless, and would have a fairly strong financial incentive to do so.

Gengulphus

[cockerhoop] 07/10/2016 13:45

Gengulphus,

Thanks for that. I should also point out that the directors and other family members also own a decent slug of the Non Voting Shares may not be as driven as you suggest to disadvantage the 'A' holders.

Another possible scenario could conceivably be share buybacks of the 'A' increasing family ownership to a point whereby they could introduce a single class of shares and still maintain control of the company.

In this hypothetical situation I imagine a similar comparability test would be applied on the merging of share classes?

[patviera] 07/10/2016 12:45

Here come the A buyersThis is madly cheapThe T saying it

[patviera] 07/10/2016 08:50

Fair enuf but the gap is too bigThe As will start to trade Upto 450 to narrow the gap as there are always buyers of the Ts

[coolen] 05/10/2016 22:29

Some decades ago, there were plenty of split capital companies traded, ie. those with both voters and "A" non-voters. On a takeover, in those days the voters would often get taken out at huge premiums.

Ahead of a bid, the predator had little interest in buying the "A" shares and would concentrate on the voters. This led to a large differential in price for perhaps a long period of time.

The controlling family, should they accept an eventual take-over bid, would justify the "market differential" as justifying a lumpy price for themselves and a relatively poor price for the non-voters.

Last seen, the Take-Over Panel's rule book was still silent on the matter.

[cockerhoop] 05/10/2016 12:43

Gengulphus,

I'm probably being thick but I didn't quite understand the point being made in 176. Are you suggesting that in the event of an takeover the 'T' voting shares would have a different (higher) takeout price than the 'A' shares?

I'm unclear as to how far pari passu extends in the circumstances of a takeover.

[patviera] 05/10/2016 12:12

Gap is madnessSame dividend as well!!As should be 5qd and ords 6qdEnd of

[gengulphus] 13/9/2016 20:30

westcountryboy,

Very curious gap now between the Ordinary T shares and the As. Until the beginning of 2012 there was no gap. ...

Where on earth did you get that idea??? The following two charts show the As slightly below 240p and the Ts slightly above 350p at the start of 2012:





Gengulphus

[cockerhoop] 12/9/2016 14:51

It's somewhat ironic that the T's which are trading a a close to £3 premium because they have a vote, don't really have any influence due to the family holding.

[cockerhoop] 09/9/2016 12:50

Likeminds etc.............I bought some more of the A's yesterday.

Gap already starting to close......the T's are dropping :-)

[westcountryboy] 09/9/2016 07:41

Very curious gap now between the Ordinary T shares and the As. Until the beginning of 2012 there was no gap. Then in 2013 and 2014 one opened up, only to close briefly at the beginning of 2015. Since then it has got wider. But it has never been as wide as it is at the moment, indeed it is heading for 2:1. The As have given up all the gains from the recent TS. So I just bought some more...

[patviera] 30/8/2016 14:30

Too cheap6pds tgtAnd VS ords it's too low

[patviera] 07/6/2016 20:16

So cheap450p right price today6pds in 3 years timeSo much cash

[value hound] 07/6/2016 14:20

Well I've bought a few of these today. It's interesting that this was a "bad" performance and I still get it to be materially undervalued.

[topvest] 21/1/2016 09:23

Yes, all very odd - not a likely bid target but you never know. Might as well buy the A shares given the far superior yield.

[cockerhoop] 21/1/2016 08:13

A class shares are pari passu with the T class shares so apart from voting rights and attending the AGM they are equal in all other respects. The Dewhurst family own both classes but maintain over 50% of the T class shares so any takeover would have to be agreed.

Discount between the 2 classes is widest I can remember.

[coolen] 20/1/2016 21:33

Would be interesting to see what the Takeover Panel were to say if there was a bid for Dewhurst. Can anyone remember the last time when an offer for voters and non-voters had to be apportioned in a bid situation ?

[topvest] 20/1/2016 20:58

Opened a small position here today. Look excellent value versus the voting shares given you get the same dividend etc. Quality little company.

[patviera] 30/12/2015 22:22

No I meant it's been tough for rainmaker as he loves those twoYes I'm down on spectraBut up in dwha and ton

[cockerhoop] 30/12/2015 19:44

Pat,

My apologies, I read the following and assumed you had.


patviera 25 Dec'15 - 07:53 - 7736 of 7752

I also lost money this year

With achl and spectra falling hard recently

It's been tough


But I am v patient and dewhurst has been a great share for me

I expect markets to fall 60 pct in 2016 so be v careful out there

Happy new year

[patviera] 30/12/2015 17:43

Never ever bought achlMassive special divi cining hereStill got 5 pound targetBeat company on aim here