Dx (group) Share Discussion Threads

[qs99] 16/11/2023 09:58

so the board have thrown the towel in...must be the lowest EV/EBITDA bid ever.....pretty disgraceful really and via a Scheme.

Will we all be able to find out who is staying on, what their packages are, what NED remuneration is this year up to the bid etc?

DYOR

[astreix] 16/11/2023 09:57

Finally offer is here. 48.5p (47.5p + 1p dividend)

[hillock1] 16/11/2023 09:39

It's very frustrating to waiting for weeks and probably if with extension, more weeks

[katsy] 16/11/2023 09:27

I think management wants a higher offer and HIG extensions were because of this to see if it's worth it or not.

[yasx] 16/11/2023 08:44

Perhaps another extension will be required….

[bdbd11] 15/11/2023 16:04

There's still 10% in this. With such a short period until the deal happens, does that indicate that it might well fall through? If it does there's a huge 30% or so of stock overhang, so inevitably the price will fall, despite the lowly valuation.

[katsy] 14/11/2023 12:40

43.9p are buys

[yasx] 14/11/2023 08:49

With just a few days until the deadkine expires, I hope another extension is not on the cards. At 44p still a bit if upside from here

[markie7] 13/11/2023 09:27

Sangrove must be confident re a positive outcome. They always come into these situations once they have done their due dil.

[miti 1000] 10/11/2023 15:29

Canaccord one of the sellers...sandgrove capital the buyer .Sangrove a specialist arb player.

[effortless cool] 10/11/2023 10:51

It isn't HIG. they can't be buying in the market at the same time as they are undertaking detailed due diligence. Very much insiders.

[stemis] 10/11/2023 10:43

I'd be surprised if it was HIG. DX have 600m+ shares, so it would take more than a few million to cause a disclosure.

[katsy] 10/11/2023 10:09

There were millions of shares traded very recently but none of this has been Form 8.5 RNSd, could it be HIG buying up loads below their offer price.

[bostonborn] 06/11/2023 16:04

Why all this time doing due diligence??? Lloyd Dunn was previously CEO and Gatemore had a non executive director. Also when there was a problem with the accounts and the fraud / bribery possibilities problem, Lloyd left the company, all very very odd?

Maybe it is the integration of Tufnell's accounts that is causing all the problems as Tufnells did go bust! Just an observation.

Trading is currently supposed to be very good, hence the price should be around 55p to 60p to reflect future growth etc. Hope the Directors agree with this?

[this_is_me] 06/11/2023 13:30

Don't they need 75% acceptances to make and offer compulsory?

[stemis] 06/11/2023 12:57

If HIG get a board recommendation and irrevocables from 30%, I'd be astonished if other institutions don't fall in line. Hargreave Hale Limited (Marlborough Special Situations Fund) were rescue backers with Gatemore at 10p, back in 2017, so I'm a bit surprised HIG haven't support letters from them as well. They alone would take it over 46%

[qs99] 06/11/2023 12:06

Importantly NOT all instis are "in" with this, hopefully they are the ones who are showing some backbone and insisting on a higher price!

DYOR

[yasx] 06/11/2023 09:51

Incidentally, the announcement today leaves the door open for further extensions if required. This is surely occupying the minds and time of the Board at a key stage and otherwise enabling the market to ignore fundamental improvements to the overall business. They should not afford further extensions and that should have been made clear. Either make an offer or walk.

What might be even worse is if they don't feel they will secure approval of all holders at 48p, they may then set out an unfavourable exegesis of the business following the extensive D - thereby further harming the prospects of the Co. in the near term.

[yasx] 06/11/2023 09:21

The Board could indicate their lack of support for any offer around the probable figure suggested by HIG - that would send a clear signal and remove the need for HIG undertaking extensive DD if they did not intend to pitch at a significantly higher level. The corollary of this is that the Board is likely to support a bid at 48.5p and HIG know that, dragging their heels. To grant them two extensions with a likely price of 48.5p is tacit approval by the Board. Not particularly helpful when two major holders accounting for 30pc and the Baord seem behind the potential bidder.

[qs99] 06/11/2023 08:50

HIG can't get headline dd done in 6-7 weeks? Blimey, what hope of them running the business?

Still time for Board to show they have a pair and push for increased offer to get their unanimous backing

HIG said "at least 48.5p incl divi" so IMO let's get that North of 50p, another 10-15% would do it and even that is derisory and cheap

DYOR

[se81] 06/11/2023 08:39

Reading between the lines.....HIG are struggling to get the agreement of the board and/or institutional shareholders at the current bid price? Gatemore & Dunn alone do not make for a successful offer...

[everton448] 06/11/2023 08:26

I cannot see why the company or its shareholders would agree to the offer price being reduced by the value of any dividend declared given that the dividend would be taxed at higher rates than the capital gain. Better to have no dividend and a 48.5 pence bid

[aishah] 06/11/2023 08:11

Yet another extension! Perhaps it's time to ditch now. Clearly the market has doubts.

[katsy] 06/11/2023 08:08

Unless of course management want more money and HIG are extending the DD process because of that! Anyway two more weeks.

[nigelpm] 06/11/2023 07:49

More than enough time. Not sure what games are being played here but disappointing.