Jz Capital Partners Share Discussion Threads

[skyship] 10/4/2019 17:11

Then another 6k bought at 450p. However, sure enough, that persistent, so persistent, 600 share seller pops up again at the close. Been doing that for months now!

Expect a run to 475p:


free stock charts from uk.advfn.com

[skyship] 10/4/2019 13:30

…& here we are in Apr'19 and STILL no news of that tender we were promised.

I emailed the Chairman to make a few logical points regarding an effective Discount Control Mechanism. Basically was put on hold, Board will discuss etcetcetc. Remains to be seen. I suspect he's not used to approaches from small Private Investors.

On a positive note, good to see the share price has turned around over the past few days; and today someone paid 447p for 4000 shares.

[robsy2] 19/12/2018 10:32

Good news for holders.
It looks interesting on the face of it but they say they also plan to pay down debt and they have a lot of debt to pay down, 300m USD, and it matures within the next 3 years or so.
The fund is 40% invested in property as well . This trust could be faciing a cash crunch . I am attracted to the idea of buying the shares for 4.50 ish and getting a tender price of around 7.35 (all GBP) for a gain of 60% plus per share, but I don't see it happening in any great measure unless they really accelerate the sale of assets.
It appears to make more sense to pay down the debt.
Best
R2

[davebowler] 19/12/2018 09:08

Liberum80m from realisations and potential tender offer in 2019 Mkt Cap £370m | at 30 November 2018 was $9.80, a -0.2% decrease in the quarter. Valuation increases in the US and European micro-cap portfolio were offset by finance, FX and other costs.In the period, JZCP invested c.$15.8m in US micro-cap investments, $14.5m in co-investments and $5m in real estate investments. The company received a $31.3m of gross proceeds and an additional $5m based on targets from TWH Water Treatment Industries and $8.3m from the refinancing of Esperante. As previously reported, in December 2018, JZCP received $40.3m from HomeFed's acquisition of a minority stake in JZCP's Fulton Mall. The company anticipates a number of realisations in early 2019 and, subject to shareholder approval, intends to pursue a tender offer of ordinary shares funded with a significant portion of these realisations. Realisation proceeds will also be used in part to repay bank borrowings. The company is trading at -42.3% discount to NAV, compared to a peer group average discount of -23.1%. 

[skyship] 08/11/2018 09:17

Seems as though this tender won't be a one-off. With more to come the share price is certainly underwritten:

“At the same time, we have repurchased a small amount of our stock at a
significant discount, although it has proved challenging to find a sufficient
volume of shares in the market at prevailing market prices. We anticipate a
number of realizations in early 2019 and in discussions with the Board it has
been recommended that a tender offer funded with a significant portion of these
realizations would be the best way to return capital to all shareholders
participating in the tender offer. As described in the Chairman's Letter, the
Board will be seeking approval from shareholders to undertake a tender offer at
approximately NAV.

It has also been recommended that the Company continue to undertake tender
offers periodically when the liquidity of the Company is sufficient to fund
such future tender offers. In addition, it is recommended to use a portion of
future realization proceeds to pay down debt as well as buy back stock
opportunistically in the market and, of course, continue to pursue our
investment strategy by making new investments.”

[skyship] 08/11/2018 09:02

Always been rather wary of JZCP; and the old zeros for that matter. Certainly they've done no-one any favours these past two years; but perhaps now value.

Bought a few and will investigate further...

[jonwig] 08/11/2018 07:12

I've barely looked at this company for a long time, but the H1 results today include this;

Since April 2017, JZCP has bought back approximately 1.1 million shares at a total cost of approximately $7.1 million. However, it has proved challenging to find a sufficient volume of shares in the market at prevailing market prices.

The Board has now concluded that the interests of all shareholders would be better served by the Company using up to $50 million to return capital via a tender offer of ordinary shares at a price no wider than a five per cent discount to NAV and to repay bank borrowings. The proposed tender offer, which will be subject to shareholder approval, is intended to be funded in part by further realizations and therefore further details of the tender offer will be announced by the Company in due course.
The NAV seems to be around 744p and the tender is about 10% of the MCap. Repaying debt is always a good plan (especially if a recession isn't far off). Have they at last founda way to unlock some value?

[hindsight] 07/9/2018 19:28

Thank you topvest, I didnt realise it was stopped. I will now cross these off my further research list.

[topvest] 07/9/2018 19:16

Sorry, where's the yield? They stopped the dividend.

[hindsight] 07/9/2018 14:03

Dont own any but slowly getting interested to with the view its a bond with little nav growth but 5% yield, albeit aware that if hedge $ it will cost 1.25% year

[topvest] 07/9/2018 08:50

I voted against this related party transaction as the circular was impenetrable. To be honest I am getting fed-up with their really poor performance and broken promises. What they are doing in real estate is anyone's guess. With a buoyant US economy they just can't increase NAV per share. Pathetic!

[topvest] 07/9/2018 08:50

I voted against this related party transaction as the circular was impenetrable. To be honest I am getting fed-up with their really poor performance and broken promises. What they are doing in real estate is anyone's guess. With a buoyant UK economy they just can't increase NAV per share. Pathetic!

[davebowler] 07/9/2018 08:33

Liberum;
3% NAV uplift from the realisation of TWH Water Treatment Industries

Event

JZ Capital Partners expects to realise c.$32m in initial gross proceeds from the sale of its stake in TWH Water Treatment Industries (TWH), plus potentially up to $5m of additional gross proceeds from an earn-out. The transaction is expected to represent a gross multiple of invested capital of c. 3.1x, and a gross IRR of 25% (on receipt of full post-closing adjustments and earn-out proceeds). The sale of TWH represents an uplift to JZCP’s NAV at July 31, 2018 of c. 2.7%.

We estimate a pro forma NAV per share (on receipt of full post-closing adjustments and earn-out proceeds) of $10.07 and a current discount of -42.5%, compared to a peer group average discount of -20.4%.

[davebowler] 27/6/2018 09:35

Liberum;
Event

JZ Capital Partners' (JZCP) NAV per share at 31 May 2018 was $9.78, a 2% decrease in the quarter from 1 March 2018 to 31 May 2018 due to pre-development operating expenses of the real estate portfolio, partially offset by write-ups in the US and EU micro-cap portfolio. The company invested $84.1m in the period and realised $124.1m.

JZCP had $112.3m in cash at 31 May 2018 (10% of NAV). The company bought back $1.3m of shares during the quarter and $4.1m post period end, in June 2018.

JZCP is trading at a -34.6% discount to NAV, compared to a peer group average of -18.4%.

Biggest Movers

[davebowler] 20/12/2017 10:21

Liberum;
Event

JZ Capital Partners' NAV per share for the period 1 September 2017 to 30 November 2017 of $9.91 represents an increase of 0.3% for the quarter. The increase was due to the positive performance of the US and European micro-cap portfolio, partially offset by pre-development operating expenses and debt service in the real estate part of the portfolio and the write-off of unused holding companies.

During the period, JZCP invested $9.2m and realised $37.6m realised. Post-period, JZCP received its first distribution of proceeds from the November 2017 sale of Factor Energia, totaling $54.7m and c. $11.0m from the second tranche of sale proceeds of Fidor Bank. At the end of the period, the portfolio consisted of 35 micro-cap investments across nine industries and five major real estate “assemblages” (59 total properties) located in New York and South Florida. At 30 November 2017, 4.8% of gross assets were invested in liquid assets (cash).

Liberum view

Real Estate represents c. 42% of total investments at 30 November 2017. US micro-cap businesses, c. 37% of total investments, are valued using an average multiple of 8.2x trailing EBITDA. The multiple of debt senior to JZCP’s position for these businesses is c.3.6x EBITDA.

The company had significant realisations in the quarter taking advantage of the competitive, buyers private equity market and is expected to continue the trend in the short term. JZCP is trading at 33.3% discount to its November NAV, compared to a peer group average of 23.4%.

[davebowler] 07/11/2017 13:09

I'm in the JZCC convertibles so I hope the same!

[pugugly] 06/11/2017 09:23

dave: Thanks for above post - Only wish the discount will narrow -

[davebowler] 06/11/2017 09:19

Liberum;
JZ Capital Partners (Mkt Cap £425m)
€70m proceeds from Spanish asset realisation

Event
JZ Capital Partners (JZCP) has agreed the realisation at NAV of its majority equity interest in Factor Energia S.A. (Factor), held through the EuroMicrocap Fund 2010, L.P. The transaction enterprise value was approximately €120m. Factor is being acquired by a public-sector asset manager, on behalf of a major Canadian pension fund. As part of this transaction, JZI Fund III, L.P. (Fund III), in which JZCP is an approximately 18.8% limited partner, has agreed to invest €20m alongside the majority owner and Factor management, representing approximately 25% of the business’ fully diluted equity ownership.

Under JZCP’s ownership, Factor grew its customer base from approximately 4,000 to 45,000 and reported revenues from approximately €68m to more than €370m. JZCP invested a total of approximately €7.6m in Factor and is expected to receive total gross proceeds (before carry) of approximately €69.7m from the sale (including deferred payments and interim distributions received over the course of the investment), representing a gross multiple of invested capital of approximately 9.2x and a gross IRR of approximately 42.3%.

Across the six Spanish portfolio companies it has sold to date (including Factor), JZCP has realized approximately €144.9m on an investment of approximately €60m. These six transactions represent a gross multiple of invested capital of 2.4x and a gross IRR of 23.2%. JZCP is still highly committed to the Spanish region.

Liberum view
This transaction represents 8.3% of JZCP's pro-forma NAV of $9.98 (estimated after the sale of Nielsen-Kellerman and K2 Towers). JZCP is trading at a 33.6% discount to its pro-forma NAV, compared to a peer group average discount of 20.1%.

UK Real Estate

[jonwig] 06/7/2017 07:42

Steven - am inclined to agree, but counter to that we've still a big nav discount (and a tightening Fed should strengther USD vs GBP), the market is thin so buybacks may be quite effective, and in any case they haven't bought any yet!

I'll wait and see.

[stevenlondon3] 06/7/2017 07:26

Sold out yesterday .
1 If they regard the current market conditions as challenging then how are they going to cope in a downturn
2 Lack of transparency in their property portfolio which could allow fees to be syphoned off.
3 Overall repeated poor performance.
4 Unhappy with the share buy backs instead of dividends.

[topvest] 29/6/2017 09:37

Yes, performing very poorly. NAV performance has been very disappointing despite a boom US market.

[jonwig] 29/6/2017 06:37

IMS:



NAV fallen to $9.93, mainly a couple of holdings writedowns:

Factor Energia (Spain, energy supply. Can't find any relevant news.)

Spruceview (US investment managers. Again can't find anything.)

AGM on Tuesday passed all resolutions, including share buybacks in lieu of dividends. How aggressive will they be, given a 26% nav discount?

[jonwig] 20/4/2017 07:53

STEVEN - as I understand them the rules say all shareholders must be treated equally. This means either market buy-backs or proportional return of capital. Since they are using ongoing profits to buy back shares, the former looks more likely.

[stevenlondon3] 20/4/2017 07:36

Will the share buy backs be in the market or will it be used as an avenue for the big shareholders to reduce holdings by arranged deals?