Dunedin Enterprise Inves... Share Discussion Threads

[pvb] 06/1/2025 19:39

Resolution passed at general meeting. DNE to be liquidated.

[pvb] 31/12/2024 13:47

My broker now confirmed DNE can stay in ISA for duration of liquidation.

[pvb] 19/12/2024 15:46

New announcement, new timetable:



"If shareholders approve of the Proposals, the Company's shares are expected to remain suspended from Listing until, at least, after the payment of the first cash distribution to shareholders and, as such, should continue to be "qualifying investments" for ISA purposes. Shareholders are strongly recommended to consult their professional advisers regarding their own tax position and their own ISA provider in advance of the General Meeting."

[papy02] 19/12/2024 10:53

The current share price here looks to be covered assuming £5m costs from here to end of the liquidation, and assuming 50% haircut on the remaining investments.

Does that mean it is a buy at these levels? What costs and/or final return / timescale do you estimate?

[forensic] 18/12/2024 18:18

interactive investor -

IMPORTANT UPDATED INFORMATION FOR ISA CLIENTS

Proposed Delisting and Liquidation

Following our recent notice issued on the 17th December 2024 regarding the delisting and liquidation of Dunedin Enterprise Investment Trust, ii have sought clarity regarding the ISA eligibility status of the stock.

We can now confirm that in-line with the company’s circular the shares will retain their ISA status when they are delisted and can remain within an ISA wrapper until the completion of the liquidation.

[forensic] 18/12/2024 16:26

ISA's - I queried the position with ii, and quoted the section on ISA's in the circular. Glad to say that they have changed their position - they will be sending out an updated notice shortly. DNE shares can continue to be held in ISAs during the liquidation process.

[pvb] 18/12/2024 14:28

"1. I will be emailing my ISA provider with a few questions."

Answer came there none. :-(

Looks like I will have to speak to them.

[pvb] 12/12/2024 10:45

...But is this about DNE? It is certainly necessary with single company shares but, as my previous post shows, not necessarily true with an IT in liquidation. But individual brokers will have their own policy.

Curiously, my ISA provider seems to want to take a different approach to this to the last time a very similar type of IT was liquidated.

[jagworth] 11/12/2024 16:39

According to Halifax Share Deaing

“If the company cancels its listing on all Recognised exchanges, the shares will become non-ISA eligible, as they won't meet HMRC requirements. In this case, if you hold your shares in an ISA, we'll move them to your Share Dealing (non-ISA) account once the Cancellation is complete”.

[pvb] 10/12/2024 23:23

WRT holding in ISA during liquidation:

This is getting confusing...

I hold most of my DNE shares in an ISA, but a few others separately, outside an ISA. The ISA manager has sent me an option form:

1. Move shares out of ISA to another account.
2. Move shares out of ISA to certificate in my own name (the default).

This aligns with my prior expectations about effect of liquidation on shares in an ISA. (This seems different to last time an IT was liquidated in the same ISA!)

But... No other explanation or information - apart from saying information is available on DNE company website. No mention of any option to vote on liquidation!




Outside ISA have received voting form and details of liquidation from company registrars. On p.9 Shares held in a ISA

"...The Company intends to conduct its affairs so as to meet the ongoing provisions required of a company operating as an approved investment trust. As such, the Shares would continue to be stocks and shares 'qualifying investments' during the liquidation period for ISA purposes. ISA providers may therefore permit the Shares to continue to be held in an ISA account.

Some ISA providers may however take a different approach in relation to the Shares during the liquidation period. For example, they may state that if the Shares are removed from CREST prior to completion of the liquidation, they may remove the Shares from the relevant ISA Shareholder's account to a new account outside of the ISA into which any further distribution payments would be made. From a practical perspective, such removal from CREST may occur just before completion of the liquidation process at which point the company expects that shares would have only a nominal value.

Notwithstanding the above, Shareholders are strongly recommended to consult their own ISA provider in advance of the appointment of the Liquidators so as to ensure that any action which may be necessary in relation to their shareholding can be taken in good time."

So it looks as if:

1. I will be emailing my ISA provider with a few questions.
2. You will need to seek advice from your ISA provider to find out how it is going to be handled by them.

[pvb] 10/12/2024 23:16

"pvb 4 Dec '24 - 10:13 - 347 of 348

SKYSHIP 3 Dec '24 - 14:12 - 340 of 346

350p is a pretty disappointing first payout!

Does seem a bit on the low side..."

Thought: May in fact be way of mitigating possible CGT liabilities?

[31337 c0d3r] 09/12/2024 07:51

MIGO Opportunities Trust plc see value and increased their holding on Thursday.

[pvb] 04/12/2024 10:13

SKYSHIP 3 Dec '24 - 14:12 - 340 of 346

350p is a pretty disappointing first payout!

Does seem a bit on the low side (ignoring costs):

£26.8m Cash / Total shares 5,504,274 = 487p

Share price is rising this morning, maybe it will settle nearer 487p?

[cousinit] 03/12/2024 18:09

Have to say that when they announced the completion of the EV sale last week, the outstanding commitments suggested that it would be about £3.70 left to come back (I didn't realise a bit more caution would be added in aswell).

Took a bit of a risk and sold a chunk (always a chance there is good news or new information lands) as £5 looked a stretch vs £3.70. Had been hoping for about £4.25 being returned before the RNS last week.

[forensic] 03/12/2024 17:13

I understood the RNS at first reading. Some folks simply don't bother to read whats put in front of them. The shareholders who have sold today obviously have too much money, and don't see a potential future gain. Topped up at the bottom - their loss, my gain.

[pvb] 03/12/2024 17:07

...What "doesn't add up"?

£33.2m Total Net Assets = £26.8m Cash + £5.9m Unlisted + £0.5m Net Current Assets

[1auger] 03/12/2024 17:02

Badly worded RNS in my opinion.
Only £19.3m can be paid out now as £6.9m for time being is potential investment commitment so must be held until invested or commitment extinguished. The cash remains in the bank account and doesn't need to be "realised" whereas the three remaining investments valued at £5.9m. £33.2m NAV. Share price fall looks to be overdone.

[deadly] 03/12/2024 16:09

Something strange here.

"It is currently expected that the Initial Distribution will amount to approximately £19.3 million, in aggregate, representing be approximately £3.50 per Share.

Once the Liquidators have realised the Company's remaining assets (valued at £5.9 million...."

But:
"the total net assets of the Company are, as at 28 November 2024, approximately £33.2 million"

Doesn't add up.

[colinf63] 03/12/2024 15:58

yes skyship completely agree and a long way from the reported NAV of £6.20 was expecting much more and also no clarity on comms after de-listing so agree with other comemnts re 350p div being preferable. will vote against

[skyship] 03/12/2024 14:12

350p is a pretty disappointing first payout!

[pvb] 29/11/2024 16:52

Here it is:



29 November 2024

Dunedin Enterprise Investment Trust PLC

"Realisation of EV Holdings Limited ("EV") and update on winding-up proposals

Dunedin Enterprise Investment Trust PLC ("DENT" or the "Company") is pleased to announce that regulatory approval has now been granted for the realisation of EV, a provider of high-performance video cameras and quantitative visual analytics to the global energy industry. The investment in EV is held via DENT's interest in Dunedin Buyout Fund III LP.

As at 30 September 2024 the Company's investment in EV was valued at £2.6m. Proceeds received from the transaction amount to £2.7m, consisting entirely of capital.

Following this realisation, the Company has remaining unlisted investments valued at £5.9m, cash balances of £26.8m and other net assets of £0.5m. As previously noted, the Company also has outstanding capital commitments to limited partnership funds of £6.9m.

Pursuant to its managed wind-down strategy, the Company's investment objective is to conduct an orderly realisation of its assets in a manner that seeks to achieve a balance between maximising the value of the Company's investments and progressively returning cash to shareholders. The Board and its advisers intend recommending to shareholders a members' voluntary liquidation of the Company. Any such winding-up will require shareholder approval and the Company intends to publish a circular to convene a general meeting shortly. A further announcement will be made imminently."

[pvb] 05/9/2024 10:27

...Err. No.

Which is why delisted shares are removed from ISAs. Because they don't qualify for ISAs.

But... 'Interesting' issues can arise with some brokers when it comes to what happens to the payments of the proceeds from liquidation of delisted shares that have been removed from ISAs!

Only a specialist part of HMRC (which you cannot contact directly) - dealing with the management of ISAs - knows the answer to that one. Apparently.

Or you could just let sleeping dogs lie...

So, when it comes to ISAs, the 'simple' answer to Chrysalis99's original question is: Wait and see! :-)

[forensic] 05/9/2024 10:24

Dito ISA's

[cousinit] 31/8/2024 07:16

SIPPs fine to hold delisted stocks (but maybe complicates any transfers out or vesting).