Logistics Development Share Discussion Threads

[briggs1209] 27/9/2023 17:36

I think here we have the two clashing approaches. DBAY have been, as commented, pretty decent. Their aquisitions seem to have a long term approach which will probably reap rewards over a several year time period (at least for DBAY).

However as SteMiS aptly puts it the single easiest way to realise value would be an immediate wind up of the whole business and a complete distribution of cash to shareholders. This is getting harder to execute as DBAY makes investments in illiquid companies.

I can see why many shareholders are willing to just take the 14p and walk away.

[zoolook] 27/9/2023 16:27

The declared NAV was 20.4p in April

hxxps://www.ldgplc.com/commencement-of-share-buyback-programme/

[stemis] 27/9/2023 08:36

The easiest way to have created value for shareholders would have been to wind the company up and distribute the 19p a share in cash it had (a value it hasn't come even close to since it sold Greenwhitestar, despite all the share buybacks).

[kirmich] 27/9/2023 04:29

I think DBAY is doing a nice job. On the buyback side, they are getting as much shares as possible, upping our and especially their stake as cheaply as they can. The are now doing 200.000 shares a day, 1 million a week at about a 30% discount so about 1% of the outstanding shares per month (if they can continue this way) and already about 20 million or 4% of the outstanding shares cancelled.

On the investing side, they now got stakes in 4 companies. SQLI, Finsbury, Alliance Pharma and Trifast.
Results out for 2 of them yesterday, Finsbury and Alliance. The results for Finsbury in my mind show they aren't paying much for the entire, very well managed business. At Alliance Pharma the business is generating more cash and the outlook looks promising. I also liked them stopping the dividend stream there, debt is too costly these days.
SQLI's numbers were ok, gently growing.

So i think captive is a harsh word. And related to Finsbury, if LDG wanted to sell their stake on the open market (if there wasn't a takeover bid), it would crush the stock price as the liquidity was very poor, so not really agreeing with the assumption of the easily saleable shares.

[briggs1209] 22/9/2023 17:43

Yeah, the relationship is a not one of equals at the moment.

Only saving grace is that DBAY being such a big holder of LDG shares will (in the long term) be mostly aligned with us.

[stemis] 22/9/2023 13:30

All this deal does, if it wasn't already clear, is demonstrate the LDG is a captive of DBay. They've swapped listed, easily valued, easily saleable shares in a transparent capital structure for unlisted, non-transferrable, difficult to value shares in an opaque capital structure.

LDG are to receive 11,763,979 Bidco A Shares. How many total A shares are there? How many non voting B shares? How much debt will Bidco carry?

It may well turn out to be a good deal, but at the moment it's easy to see why LDG shares are where they are.

[makinbuks] 21/9/2023 10:46

Certainly not going to aid transparency but I must say I like the deal.

[lpavlou] 21/9/2023 07:47

We now have clarity. We will still be a bit player in the new entity. I'd prefer they take a meaningful stake. Our profit on FF equates to 0.5p of Nav. At least the buy back has increased to 200k shares per day

[briggs1209] 20/9/2023 09:51

Yes, need clarity.

Either LDG take the cash and we get a bump in NAV and liquid assets to reinvest, or, we get locked into a private investment which will make valuation more difficult.

If DBAY sell the LDG stake in FIF for cash they would presumably get their % of the profits. How it would work with payments if LDG keep the private holding in FIF?

[makinbuks] 20/9/2023 09:42

Its going to be interesting to see. Perhaps they should make a statement to the market

[stemis] 20/9/2023 08:52

Why do you think LDG will take non voting B shares in Bidco rather than cash?

[lpavlou] 20/9/2023 08:42

This will mean our money is locked in to the bidco. Question is whether LDG will put more funds into Bidco for a larger stake. Will also mean it becomes an illiquid investment. I thought they may go after APH, which is why I started investing there too, but picked the wrong horse for now

[makinbuks] 20/9/2023 08:20

But taken out by DBAY

[+eysenck] 20/9/2023 07:21

Finsbury food taken out at premium. Should be a nice payday for LDG

[+eysenck] 18/9/2023 15:21

10,000,000 bought @ 13.50p. Did nothing for the share price

[lpavlou] 08/9/2023 07:55

Being careful not to overpay with the buybacks hence the low amount purchased over the last 2 days.

[boystown] 07/9/2023 16:22

Tipped by Simon Thompson again

The bottom line is that LDG’s shares are being anomalously priced once you factor in the substantial cash backing, the underlying value in its four holdings and their re-rating potential. Effectively, you are getting those stakes at less than half their book value even though their intrinsic value is materially above their current market prices. That double discount is worth exploiting. Buy.

[lpavlou] 04/9/2023 09:42

From a quick reading of the numbers and current SPs, they are breakeven on APH due to the dividend. Up 10percent on SQLI, up on FF and up to TRI. I make it up £2m on investments, so with costs etc, NAV is probably up £1m so it's still sub 21p

[briggs1209] 31/8/2023 16:59

Interim results out, no NAV given from what I can see

[lpavlou] 25/8/2023 19:43

Seems they are having to pay a bit more with each buyback. Volumes dropped this week, so sellers wanting a bit more for their shares

[cityadvice] 16/8/2023 19:00

lpavlov
Responded to PM

[cityadvice] 15/8/2023 17:46

Hello LPAVLOU
I've left you a PM in your ADVFD mailbox

[briggs1209] 15/8/2023 15:53

10.3 million shares changed hands today. Stock being shuffled from the impatient to the patient.

[lpavlou] 08/8/2023 09:32

15.7m shares purchased to date at a rough discount of 30percent to NAV.

[lpavlou] 07/8/2023 20:27

Could be the first 150k purchase in weeks