Dhir India Share Discussion Threads

[daytraders] 12/1/2012 22:04

The buyers of dhir will get there 100p+ worth a share back easily i reckon, oh well, should have been us really.

[hugepants] 12/1/2012 21:23

The big shareholders are obviously just happy to get out of this dodgy vehicle. With the markets depressed there are plenty of opportunities out there. Why keep cash tied up in Dhir?
I wonder if we'll ever know what happened with Cygnet and the reason for the big writedown. Perhaps the supposed buyer unearthed something nasty that Alok Dhir missed when he made the investment. It wouldnt surprise me.

[spectoacc] 12/1/2012 07:29

93% acceptances! Well, that answers my question - all the big shareholders happy to get out, in spite of some allegedly "obvious" goings-on. Not that I'd give advice, but if I was in the remaining 7% I'd be accepting before the 25th Jan extension - the AIM quotation, if it stays, will be for just a few % of the co.

Should get the money in a fortnight:

"Settlement of the consideration due to DII Shareholders who have already provided valid and complete acceptances under the Offer will be despatched (or in respect of DII Shares held in uncertificated form, credited through CREST) by 25 January 2012. The consideration due to DII Shareholders who provide, or have provided, valid and complete acceptances under the Offer after 1.00 p.m. on 11 January 2012 will be despatched (or in respect of DII Shares held in uncertificated form, credited through CREST) within 14 days of the date on which such acceptances are received or, in the case of electronic acceptances, made. "

[tara7] 06/1/2012 14:21

Maybe but no one told you to invest here [or any other stock.

[daytraders] 06/1/2012 13:55

tara7, what about when it was 90p/100p a share a little while ago, and nothing has changed, were being ripped off imo.

[tara7] 06/1/2012 11:48

Greed will be your downfall just take the cash and run.!!

After all, you saw it fall day after day week after week and year after year but did not sell.!!!

One or two of my stocks do go bust but 2 or 3 have 50 bagged or better.!!

2p to £1.40 and 14p to
£9.50p.!

Good luck here in any event.!

[envirovision] 06/1/2012 11:43

Yea well given most of the shares you push around on ADVFN end up going bust tara7, its no surprise you would say that is it.

[moreforus] 06/1/2012 11:34

it was 16p and 42p....

[tara7] 06/1/2012 11:30

Not invested here but when your shares were 12p and 40p came along i would jump at it.

REASON just how the hell are you ever going to get more, when this guy has time on his side and most here do not.

[moreforus] 06/1/2012 11:26

Dhir reader...
By Alistair Blair, 05 January 2012

A reader suggested I have a look at the "sad tale of Dhir Indian Investments". The reader thinks he's being ripped off, and he is right. I think the real issue is, Is he entitled to feel sour about it?

Dhir arrived on these shores in the final few weeks of the old era. It was a venture to buy up bankrupt industrial assets in India. Apparently India contains an unusually significant stock of rusting old factories and other busted ventures because it has bad insolvency laws which make it hard for anyone to take control of a faltering company. Instead, banks and others creditors face endless and expensive arguments in court which take years and no doubt a few bungs to resolve.

Enter stage left Mr Alok Dhir, qualified accountant, qualified lawyer, boss of the Delhi lawyers Dhir & Dhir Associates, founder of Dhir & Dhir Asset Recovery Company and clearly a whizz at sorting out Indian insolvencies as he and his colleagues had advised on "50 completed transactions" in just the last 12 months according to Dhir's July 2007 prospectus. Moreover, they had invested $11m of their own money in four of these situations, earning for instance a princely 67 per cent a year from restructuring a caustic soda business in Rajasthan.

Naturally, Mr Dhir had a queue of further investments but of a scale calling for some outside money. Accompanied by his prospective chairman Charlie Hambro - a man who "led a distinguished career as a merchant banker in London and New York" - he carted around the London fund managers, enthusiastically putting up slides of a recently closed edible oil plant in Gujarat, a run-out-of-money hotel development in Goa and an abandoned stainless steel plant in Delhi. All these and more were ready to invest.

Moreover, they should now become a lot easier to resolve because Indian had new insolvency legislation which would entitle certified practitioners such as Dhir & Dhir Asset Recovery Company to "enforce security without the need to obtain court approval". Dhir India reckoned it would be able to exit from most of its investments within 15 months of its initial investment.

Mr Dhir was clearly a whizz at presenting. He booked £7.5m from Jabre Capital Partners, £3m from the legendary Peter Cundill and £2m each from Fidelity, SG and UBS. All told, he took £23m back to Delhi and within months he had invested virtually the whole lot, thereby securing an advisory fee approaching £500,000 a year, which probably goes a long way in Delhi.

But 18 months later, instead of announcing triumphal exits from its earliest investments, Dhir Indian Investments found itself explaining that India was not immune to the global financial crisis and it was going to take longer than planned to make a success of its investments. A lot longer. The shares retreated 60 per cent. Although prospects seemed to recover in 2010, 12 months ago deterioration set in again and this time there was no respite. Next to nothing has been realised from Dhir's six investments and it is not just cooler Indian investment markets that are the problem. Despite the promise of the new legislation, which would enable Dhir to "enforce security without court approval", the process has not in fact escaped the grip of the courts. Indeed, even in the few instances where Dhir has sold assets for cash, that cash remains under the control of the courts. As for the only quoted investment - which happens to be in a certain caustic soda business in Rajasthan - the company is losing money, its electricity supply has been turned off and the shares are "at present thinly traded".

The four non-executive directors sacked Alok Dhir as their investment manager in May 2011 (to take effect in May 2012), although he continues to be a director of Dhir Indian Investments. Early last month, the shares stood at 16p compared with a cleaned up asset value of 75p and an original issue price of 150p.

The next step is oh so predictable. Enter stage right Alok Dhir with a cash offer of 42p.

I regret, dear reader, I have to ask: What do you expect? Do you think he should offer you 75p? Do you expect him to rescind his management fee? Do you expect him to offer to share any recoveries over 42p with you? Do you expect Charlie Hambro to pay back his director's fee? Perhaps they should all just fall on their swords?

Yes you are being ripped off. No, it's not fair. But little is, in life or business.

[astock] 06/1/2012 11:25

Thanks @lyonst5, that's the one. Seems the only "press" we get on DHIR totally ignores what to me is the main point - the silence on the Cygnet deal.

[tara7] 06/1/2012 11:21

Investors here might like the look of PFO listed on AIM.

In effect plans for a delisting put on hold, looks like new exchange rules in India could prove the way for a paper bid from PFO India.

That bid in my mind could not be under the last price paid [35p], and could be way higher.

PFO [uk] stock trades at 19.5p on a pe of around just one.!!

[lyonst5] 06/1/2012 11:21

Is this it ?

[astock] 06/1/2012 11:13

A full-page, well written but generally poor article from Alistair Blair in the IC today - page 12, sorry can't cut/paste it.

Sets out the history of DHIR whilst totally ignoring the issue of Project Cygnet and the company silence on the deal not completing/subsequent mystery write-down.

[spectoacc] 05/1/2012 08:36

Someone explain that Holdings RNS - Offeree not Offeror, zero held, but Jabre a Concert Pary so counts for 28.2%. Is that 28.2% voting in favour as a Concert, or unable to vote, or neither?

[spectoacc] 03/1/2012 12:07

They'd most likely leave it open for acceptances after the 9th (they're the ones getting the great deal after all) but not taking the risk here, particularly if it turned out the major s/holders were on board & already over 50% (not sure when they'd have to RNS that).

[lyonst5] 03/1/2012 12:02

Great, thank you all for the help.

[moreforus] 03/1/2012 11:59

yes they will take instruction over the phone

[lyonst5] 03/1/2012 11:57

Okay so i could call my broker and give my decision ?

[moreforus] 03/1/2012 11:52

i;ve accepted

[hugepants] 03/1/2012 11:49

Im accepting

[moreforus] 03/1/2012 11:36

YES if that;s what you want to do....

[christianf12] 03/1/2012 11:36

If the offer is accepted by a certain amount of % holders then you will have no choice but to accept surely?

[lyonst5] 03/1/2012 11:36

Thanks, so i need to get it signed and sent back to cash in my holding ?