Digital 9 Infrastructure Share Discussion Threads

[williamcooper104] 10/12/2024 11:33

There quoted to take advantage of the quoted Eurobond exemption to UK withholding tax It's pretty ordinary stuff Plenty of problems with DGI9 - shareholder loans aren't one of them

[tbow112] 10/12/2024 11:25

Shareholders loans are indeed perfectly normal but it is the interest rate that seems unreasonably high, along with the fact that they are supposedly quoted but appear to have uncertain terms.

[devonlad] 10/12/2024 09:16

Decent buying again this morning, had a few yesterday. Looking forward to some decent newsflow.

[foetus in your brain] 10/12/2024 09:16

I'd also add that if the government wants private investment in long term infrastructure projects, the last thing they would want to do is increase either taxes or uncertainty.

[craigso] 10/12/2024 09:13

Shareholder loans are indeed totally normal.

Even though people around here might be worried about a HMRC tax bill arriving in the post, the lawyers and tax advisers who put together these structures know what they are doing. And HMRC would have to win its case in court, not just make threats.

[foetus in your brain] 10/12/2024 09:00

Tbow, the loans are straightforward and standard practice. Theres hardly a company on the UK that doesn't at some point rely on directors loans and it is a variant of that. Unless HMRC want to ban lending money then they have to accept companies can be funded by debt or equity and each will be taxed according to the rules

[tbow112] 09/12/2024 16:31

That is 1000+ posts read and I still do not like Arqiva"s shareholder loan notes and the obfuscation that seems to surround them.
The directors of DGI9 may consider the notes irrelevant but, given the current unpopularity of PE in general and Macquarie in particular, there does appear to be a significant possibility that an unexpected tax bill could arise associated with the notes.
And if it is not tax (and one wonders why HMRC would ever take the notes at face value) then there is the possibility that their effect is to mislead other less attentive institutions.

[nigelpm] 09/12/2024 16:26

What are the outrageous assumptions OB has made?

Seems pretty reasonable to me and very well written.

[bdbd11] 09/12/2024 16:17

Should get to 20p short term, that gap needs filling.

[craigso] 09/12/2024 16:08

Oak Bloke is off making his outrageous assumptions again. I doubt that any of us believe that 104p per share is anything but a fairy tale or that a group of banks is going to offer a £300m RCF in order to pay off the VLN. I'd be happy enough with some positive transactions taking the share price into the 20s, from where we can take a view on what's left.

But he does manage to dig up some helpful data points, such as EHIC having successfully crossed the Red Sea. That should mean that EHIC is no longer a total write off.

[duncansawalker] 09/12/2024 15:28

Dgi9 on a tear! By Dgi9 standards, anyway...

[peanuts12] 06/12/2024 20:19

I think part of the additional principal related to the insurance claim proceeds

[daveoz1] 06/12/2024 18:11

A lot of these posts are way above my head, but I still enjoy reading them, thanks guys! It's good to know that most of you people who are so well informed in financial matters, are still invested in this stock, like me!

[prokartace] 06/12/2024 16:16

To be honest it has been a good day for infrastructure and reit funds

[craigso] 06/12/2024 15:31

We've had mini rallies before that weren't sustained. Hopefully this time is different. The sale of Elio is certainly overdue.

[riverman77] 06/12/2024 15:30

Back in too - can't believe I've not just given up with this one after all the shenanigans, but the value looks just too extreme to ignore. I'm also of the view the InfraRed would not get involved if it is was a genuine basket case

[bdbd11] 06/12/2024 15:07

yep, momentum building. I had a few below 15 (up to treble money, though unlikely I think) and just has a few more. I'm overweight so that's it for me. Hard to see how money can be lost if buying sub 20.

[craigso] 06/12/2024 14:54

VLN doesn't pay cash interest at the moment. The interest is just rolled up into the principal, and the only security for the VLN is Arqiva shares and shareholder loans.

If Arqiva outperforms whatever metrics were agreed at the time of purchase, DGI9 must pay the original seller a bit more - but again this is rolled into the VLN principal and isn't a cash amount.

It's only when the VLN comes due, or the shares are sold, that any of this becomes particularly relevant (in the context of a heavily-discounted investment trust).

[t_baggins] 06/12/2024 14:46

I am sure they are, but i only mentioned one of them in my post ; that being the Vendor loan notes?

1. £16 million of interest costs incurred in the period, including £11 million in respect of the Revolving Credit Facility ("RCF") and £5 million in respect of the Arqiva Group Vendor Loan Note ("VLN");


2. A provision for additional vendor consideration which would be in the form of an increase to the VLN that may be due under the terms of the purchase agreement for Arqiva.

[cc2014] 06/12/2024 14:22

The VLN and the shareholder loans are two different things.

[t_baggins] 06/12/2024 14:01

Bought a few over the last few days based on the recent dir buys and hopefully news on the RCF soon,(how soon is now) i hate the cliche 'soon' on advfn. sorry to employ it here.

Further, i read above the comments regards the vendor loan Notes basically being "an accounting fudge", If so, then why did they pay £5 million interest in respect of the Arqiva Group Vendor Loan Note ("VLN") and set further amounts aside for more payments on the VLN?

Please forgive me i am not 100% up to speed on the VLN here.


RNS 30 September 2024

The NAV decline between 31 December 2023 and 30 June 2024 was primarily due to:



o A downward revision to long-term financial forecasts of portfolio companies that form the basis of valuation models, affected in substantial part by a re-assessment of the assumptions relating to the availability of financing and timing thereof;



o £16 million of interest costs incurred in the period, including £11 million in respect of the Revolving Credit Facility ("RCF") and £5 million in respect of the Arqiva Group Vendor Loan Note ("VLN");



o A provision for additional vendor consideration which would be in the form of an increase to the VLN that may be due under the terms of the purchase agreement for Arqiva.

[foetus in your brain] 06/12/2024 10:26

Yes, feels like a change in momentum. I've added.

[duncansawalker] 05/12/2024 19:39

I wonder if something's about to come out..interesting share price moves over last few days...

[tbow112] 05/12/2024 09:33

Thanks. So why do the loan notes not appear as an asset in DGI9"s accounts, even if it is only as a note ?