Logistics Development Share Discussion Threads

[zoolook] 08/4/2022 14:24

One further thought. Is it possible that the DBAY sale was to pave the way for a further buyback and cancellation of shares?

[zoolook] 08/4/2022 12:34

Yes se81 - on the one hand you have a way of plugging into DBAY’s private equity expertise (at a discount to cash) on the other hand you have to accept that DBAY might be playing bigger games with a recommended investment. I didn’t get the impression from the RNS that the LDG board was privy to DBAY’s bigger ambitions on CTH.

[stemis] 08/4/2022 12:11

I think the price action, once the buyback ended, says it all. The market doesn't want to own these shares. Best thing would be to wind it up (or keep buying back the shares until they reach NAV and then wind it up)

[se81] 08/4/2022 11:55

Not winding up does seem strange given the relative size to DBAY interests (if they’re going to be running the show) However it is a lovely vehicle for investors here if it’s purpose is to front run successful DBAY bids ;)
I’d love a coherent strategy but my inclination is the worst outcome is a return of cash

[zoolook] 08/4/2022 11:26

With the exemption they didn’t have to sell. They must have an urgent requirement for cash to sell at this price - maybe to help fund the CTH bid? Makes you wonder why they’ve gone to the effort of keeping the LDG vehicle :-) going rather than pushing for a liquidation/return of cash. Also I wonder if this sale coupled with the CTH bid will have strained relations between DBAY and the LDG board who could in theory fire them as investment managers.

[se81] 08/4/2022 10:34

I think if you’re holding shares here it’s worth contacting LDG and complaining about their and Investec actions- why didn’t they buy those shares off DBAY at a lower price when the buyback started? Why didn’t they opt for a tender offer instead? It does feel like non DBAY shareholders are at a disadvantage here (but obviously that might be a price worth paying to access the discount to NAV)

[briggs1209] 07/4/2022 16:25

Yes, DBAY dropped quite a chunk - was that to bring them back under 30% ?

They now have the option of buying them back 10% cheaper

[galles] 07/4/2022 14:21

It looks like DBay offloaded some in fact

[galles] 07/4/2022 12:51

Disappointing and slightly surprised that there is little support after the share buyback. It only indicates that there are still willing sellers around. Issue here is DBay will own an even higher % of shares if the repurchasing programme is to continue, which means it's unlikely. They just have to make the cash work hard. Or can they issue dividends now that they've done the buyback?

[briggs1209] 07/4/2022 10:32

Buyback over and down it goes.

Buying at 14.8p is a 28% discout to cash at 19p/ share.

Seems a sensible idea to hang tight here.

[zoolook] 07/4/2022 08:57

Buyback now complete in super quick time. Closed the gap on the cash per share a bit but not as much as I expected. Sold half my holding for a fraction under 16p a couple of weeks ago but still remains my second largest holding by far and going to sit it out.

[baddeal] 07/4/2022 08:57

Yep looks like they've picked up the 20% now

[lpavlou] 06/4/2022 17:48

I expect the buyback is almost complete. Will be good to see if the share price holds up without this support

[spagboll] 06/4/2022 10:40

Maybe Shiekh holdings figures it makes sense to buy LDG and get the 1.74% of CTH for free haha. I see the final report says we have cash worth 19p a share.

[baddeal] 06/4/2022 09:38

As of last rns we were down to 615m with the agreed back target of 552 so looks like they're nearly done. Had hoped we would see c18p on completion so looks like there will still be a discount

[sphere25] 06/4/2022 08:53

Taken a few for a possible quick opportunity.

Someone is keen here. They have come in early for 35.4m shares.

Maybe partly on the back of the below?

"The Company now has no financial debt and a cash balance of GBP131.9m or approximately GBP0.19 per ordinary share."

Clearly it depends on how the cash is used but maybe the cash discount narrows to 16.5-17p especially if big buyers come in like that? Hard to say what the right discount should be.

(Another 7.3m and 10m bought as I type)

I guess the exit is a tad easier here too because of the share buy back just in case it doesn't push on to narrow the cash discount.

All imo
DYOR

EDIT: Ok no, that's a fail so taken a little loss. Despite the big buying, the sellers have won out and the breakout above 16p to narrow the cash discount didn't hold.

[tyranosaurus] 06/4/2022 08:36

It will be interesting to find out about the 2 trades of 35m shares.
That could be 25% of the total buyback in one trade.

[zoolook] 04/4/2022 14:44

DBay took over Telit last year for £300m so they are not necessarily reliant on LDG cash to fund the acquisition.

[lpavlou] 04/4/2022 14:08

Can't help thinking this is a ploy to get the Sheikh to pay £8 per share. LDG only has £100m in cash so If they are serious, I can see Dbay using this cash as giving LDG a 10percent stake in CTH. Let's see if they carry on buying back shares now they have a need for the cash

[boystown] 04/4/2022 12:07

So eith the buybacks and tbe Caretech shares now valued at £14.8m, what's the overall NAV position (cash plus CTH value)?

[spagboll] 04/4/2022 11:09

I see Shiekh holdings has to update the market today regarding their potential offer. I was thinking the DBAY involvement might be to encourage them to make a higher offer, who knows but it should be interesting to watch.

[zoolook] 04/4/2022 10:39

Wow they’ve offered 750p share

[galles] 04/4/2022 07:34

Looks like they want outright ownership of Caretech, not just an opportunistic punt.

[zoolook] 01/4/2022 13:50

Fair point

[galles] 01/4/2022 13:44

But they can still do that, it's not a binary this or that scenario. Say they choose to sell out of the CTH holdings today, bank the profit, and they can still deploy the cash, with the added profit, onto share repurchase.