Digital 9 Infrastructure Share Discussion Threads

[loglorry1] 04/3/2024 08:18

When 3IN bought GCX it was making a lot more money than Aqua. I know Aqua is due to ramp up and not much of their capacity has been used but recent EBITDA numbers for Aqua are really low compared to CCX when it was acquired. One would hope a suitor would see the potential still.

[williamcooper104] 04/3/2024 08:02

Yep forgot about that Presumably then 3IN would have been told that they had to bid close to NAV whereas now highly likely they could get it at a big discount (which would still be a decent premium to current sp)

[rambutan2] 03/3/2024 21:57

At the start of last year 3IN considered making a bid, but decided against it. Wouldn't expect that to happen again, but I wonder whether they're eyeing up Aqua, as they do have an undersea cable investment in Global Cloud Exchange...

[williamcooper104] 03/3/2024 21:28

Only way it could survive is with new management but even then they'd still struggle to raise equity Ideally they'd keep Verne, sell Acquivia (the poison pill I expect to a take over) and then get taken out by CORD or INPP/HICL But Brookfield (BIP) more likely

[daveoz1] 03/3/2024 16:33

Thanks for your comments. They are as I expected - just wanted to check that I hadn't missed something!

[tigerbythetail] 03/3/2024 14:51

Of course the wind down should go ahead. I'd be surprised if any shareholder thought otherwise.

[redhorse2020] 02/3/2024 21:37

Seems like the most sensible way forward under the circumstances. Not looking for a fire sale but an orderly realisation / managed wind down seems like the best way to maximise value - unless you have any better suggestions?

[daveoz1] 02/3/2024 16:46

Any comments on the shareholders vote to approve the Resolution for the wind-down...I suppose most of you will vote to approve it?

[invisage] 29/2/2024 13:06

We are all just waiting for Verne to get sold which Sachin Saggar said is likely to happen, he also said when Verne is sold DGI9 likely to trade past 50-60p.

The issue DGI9 faces is liquidity which largely resolves once Verne sold and RCF paid down.

About 14 weeks or less of waiting to see Verne get sold. In the interim we have improving economics in the form of lower inflation and likely lower rates soon. In about 3 weeks the board start to market the other assets to pay off VLN and start distributions and winddown the company....


One gets paid for being patient in this game...

[speedsgh] 29/2/2024 11:06

Digital 9 drops on lack of cash detail in wind-up -

[easybrent] 29/2/2024 10:10

CC2014,

What new Arqiva contract is this referring to?

[cc2014] 29/2/2024 06:38

From theoakbloke's first paragraph.

"Arqiva has announced a contract equal to 20% growth to its base of water meters in 2024 (1.5m to 1.8m) worth about £50m so EBITDA about £20m so £10m to DGI9."

This is revenue from fitting smart meters. 300k meters for Anglian Water. It's only incremental revenue and EBITDA if these meters are in excess of last years run rate.

[donald pond] 28/2/2024 21:38

If the valuation is wrong then the board and management are epically failing in their communications to the market. I have previously sent the oak blokes analysis to Charlotte Valeur so the board know about it

[elpirata] 28/2/2024 19:54

Today’s update reinforces the simple fact the current valuation is wrong.

[cc2014] 28/2/2024 11:02

#1594.

I think you've answered your own question.

A trading update can never be priced in. If the trading update is worse than expectations the share price falls. The existing discount to NAV is not relevant.

[tigerbythetail] 28/2/2024 10:15

I'm not sure I understand the market reaction this morning.
Surely a worse trading update was already priced in considering the 80% discount to NAV? (OK, the NAV is questionable, but nonetheless...)
I don't see any indication here that the Verne sale won't complete. The Arqiva numbers could indeed be better, and (IMO) DGI9 overpaid for their stake in it, but it is not worthless.
Is it the mooted prospect of delisting (in due course) that is spooking the market?
I'd thought that all those who needed to sell for portfolio reasons (e.g. the requirement for liquidity) must have already sold. But perhaps I'm wrong about that?

[cc2014] 28/2/2024 09:45

Verne part looks OK if not inspiring. Nothing to suggest the transaction will fall apart.

Rest looks like it isn't doing as well as the market expected. Arqiva looks poor.


In summary DGI9's balls remain tightly squeezed in a vice and pressure continues to be applied.

[loglorry1] 28/2/2024 09:29

Market doesn't like Aquacoms perhaps which looks a bit light but I think they are still ramping up revenues so it should pick up soon.

[tsmith2] 28/2/2024 08:10

update reads ok to me

[speedsgh] 27/2/2024 11:15

Very interesting discussion here on calculating value in struggling trusts. Analysis by Stifel analyst, Sachin Saggar. Segment on DGI9 from 44m40s to 48m36s...

[daveoz1] 26/2/2024 11:49

jpatara3: Hmm...pity the trade didn't go through, that would have helped the share price nicely!!!

[jpatara3] 26/2/2024 11:26

I received a call from my broker asking whether I had placed a very large trade for DGI9! Apparently the market makers called the broker querying the trade. Not sure how the potential trade is linked to my account. It was for 13million DGI9 shares!!

[spectoacc] 22/2/2024 09:41

Twitch.

Coincidence this happens after a week without a single post?