Majedie Investments Share Discussion Threads

[ctrader3] 07/12/2021 10:09

The Initial Consideration Shares, Excess NAV Shares and Conditional Consideration Shares are to be issued at a price of 2,172p per Ordinary Share, being the 30-day average closing price to 3 December 2021

Audited gross and net assets of Majedie as at 30 September 2020 were £90.6 million and £45.7 million respectively, although it is intended that surplus capital will be paid to Majedie Shareholders before Completion.

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Liontrust current share price £23.00

[andycapp1] 07/12/2021 09:46

“Noted” is what you say. You are not part of the deal as you are minority.

[andycapp1] 07/12/2021 09:45

No £22m is non deferred piece. See above. I’d rather have 14.3% less 25% in Liontrust than 14.3% in unlisted (obviously struggling) small fund manager.

[andycapp1] 07/12/2021 09:42

Think the carrying value (ex deferred) is £173m assets x 14.3% so £24.7m roughly. Liontrust up but today so non deferred is £22.37m and deferred (which you never get!) is £5.5m odd. So total is £28m odd. So mea culpa it’s a reduction in NAV based on non deferred piece of say £2.3m but uplift based on total value. Not sure what they’ll reflect in NAV? Say all non deferred and half deferred? Handily maintains NAV! But much better for liquidity, certainty and hopefully ongoing performance. Div will be affected but say 10% reduction in div v better ongoing discount and performance? Still think 250?

[makinbuks] 07/12/2021 09:30

Their assessment of the value at £22m must include the deferred payment I think

Also the share element is subject to lock up provisions

Interesting that the offer is simply "noted"

[spectoacc] 07/12/2021 09:23

Agree with all that @andycapp1, but think I'd hoped for more, whether a longer term outperformance of MAM, or a better price on sale.

[andycapp1] 07/12/2021 09:20

Re income not entirely true. The uplift in carrying value for the stake is decent whilst Liontrust pays 2% divi. They get rid of 15% of assets in illiquid investment which has been poor last five years and swap for 25% cash and 75% in decent sized listed entity. They might chop divi a little but who cares. Maje looks better post deal than pre deal; you get cap unlift, more liquidity in portfolio and hopefully better ongoing performance. Shares worth >250.

[edwardt] 07/12/2021 08:43

Deferred comp too ..

[makinbuks] 07/12/2021 07:34

Not even a cash deal, £97m new shares in Liontrust and £23m cash.

Loss of MAM dividend will be significant to MAJE too

[makinbuks] 07/12/2021 07:25

£120m, going to make a big change here in investment policy

[edwardt] 07/12/2021 07:23

Majedie sold to liontrust!

[spectoacc] 01/11/2021 10:11

Got a mention at the weekend in the ST, for divi growth.

[spectoacc] 20/10/2021 16:28

Look at the chart :)

You haven't asked a question?

Discount greater in April 2019, and above 30% even in 2011 & 2012. Bad flu years perhaps? ;)

[orinocor] 20/10/2021 16:24

OK I have to spell it out by the looks of it.
I'm not referring to any time since the pandemic when share prices have gone haywire. Now answer the question.

[spectoacc] 20/10/2021 16:13

Earlier this month, 03/09, June (twice). That's 5 blue moons in 6 months, including today :)

Good luck with your investment. But this isn't an abnormal discount for MAJE. No one can look at even the past 5 years discount chart and think the current one is abnormal. The chart's there on HL, just change the period to 5 years.

Pity, if it was, I might buy more!

[orinocor] 20/10/2021 16:05

The one year chart is anything but typical but don't let me stop you. Historically the discount to net assets value is this wide once in a blue moon.

[spectoacc] 20/10/2021 14:08

Yes but why not look over 10 years, or 20? The one year encompasses the current market (ie post-Covid), as well as the recent performance.



Even the 5 year chart shows it's a real stretch to say it's currently abnormal.

Hold MAJE, but not in size.

[orinocor] 20/10/2021 12:01

No spectoacc I disagree it is normal. A cursory glance at the 5 year chart shows the discount to net assets moves regularly between 10% and 20% giving an average 15%. It is now 21% so it is a substantial 6% bigger than the average.

[spectoacc] 20/10/2021 11:44

Good luck. Discount looks about normal, maybe a % or two wider. What they really need to do is perform a bit (a lot) better.

[orinocor] 20/10/2021 11:40

A diversified portfolio of assets with the biggest allocation the undervalued UK market.

MAM UK Equity Portfolio (segregated) 39.0%
LF MAM Global Equity Fund 25.9%
MAM Tortoise Fund 12.4%
MAM International Equity Fund 7.9%
Majedie Asset Management 14.2%
Corporate Cash and Other 0.6%

[orinocor] 20/10/2021 11:39

I think this is a good time to buy now and I did today at 221.5p
The net asset value is 282p and the big final dividend will be paid in January.
This discount is historically large.

[andycapp1] 30/9/2021 08:12

Notice that Majedie has started buying back shares counter to my previous e mail. Good!

[andycapp1] 27/9/2021 21:23

Given the family owns over 50% they can do what they want broadly. I don’t think he’s unimaginative at all. Solid I’d say. Dunno about James. But I think a 20% discount is a bit too much if yield sustainable

[makinbuks] 27/9/2021 17:02

I don't know William Barlow from Adam but your description of your conversation compounds my impression: dour and unimaginative. As a Scot I could find that an attractive description for someone running my money but in this instance I find it frustrating. A change of heart, some thinking outside the box is required here to realise the value in the shares and get rid of the discount.

For example De Upagh cant be thinking of going on too much longer at MAM. Is there not a wind up/buyout option with another manager or hedge fund that might suit all parties?