Marwyn Value Investors Share Discussion Threads

[makinbuks] 06/1/2022 09:01

And now possibly bidding for the lot

[hugepants] 05/1/2022 10:39

Yeah Vinodka is the biggest shareholder in SAA. Priceless!

[hugepants] 05/1/2022 10:01

ADVT have invested £24M into SAA

[cwa1] 24/12/2021 12:20

LOL, however it has set the share price, ahem, "alight" :-)

[igbertsponk] 24/12/2021 09:43

Thousands of trades I see....

[skyship] 24/12/2021 09:29

Love the list of sectors they will consider for a deal; would have been shorter just to name the sectors they won't consider!

Still, nice to see a small mark-up today.

[tiltonboy] 24/12/2021 08:35

Zero execution on purchases in 2021, and they pull this cunning stunt!

[tiltonboy] 24/12/2021 08:26

Words fail me!

[cwa1] 24/12/2021 08:21

Tiny signs of life in the share price ..

From this morning:-

24 DECEMBER 2021

Marwyn Value Investors Limited ("MVIL" or the "Company")

Launch of MAC Alpha Limited ("MAC Alpha")

The Company announces the admission to the standard segment of the Official List and to trading on the London Stock Exchange's Main Market of a new listed acquisition company, MAC Alpha.

The directors of MAC Alpha, initially being James Corsellis and Mark Brangstrup Watts, believe that the current economic environment will present attractive opportunities to invest in, improve and grow companies in partnership with an industry leading executive or management team and have developed a listed acquisition company model that will enable trusted and successful management partners to identify value enhancing opportunities before raising additional capital.

MAC Alpha will consider a broad range of sectors. Those sectors which the MAC Alpha directors currently believe will provide the greatest opportunity, and on which MAC Alpha will initially focus, include Automotive & Transport, Business-to-Business Services, Clean Technology, Consumer & Luxury Goods, Financial Services, Banking & FinTech, Insurance, Reinsurance & InsurTech, & Other Vertical Marketplaces, Healthcare & Diagnostics and Media & Technology.

The Manager(1) believes that the structure of MAC Alpha represents a significant improvement on conventional listed acquisition vehicles both for investors and vendors, allowing for greater speed and flexibility in financing and execution combined with lower operating and transaction costs.

Funds managed by Marwyn(2) have invested GBP630,000 into MAC Alpha, representing 90% of the ordinary equity and warrants. Additionally, funds managed by the Manager have entered into a Forward Purchase Agreement with MAC Alpha to subscribe, on a discretionary basis, up to a further GBP20 million for securities, which may be drawn for working capital, to fund due diligence and/ or as part of future share issuances to finance a platform acquisition.

The total investment attributable to the Company's Ordinary shares will initially be GBP490,334, representing 0.50% of the Ordinary share net asset value ("NAV"), measured at 10 December 2021, being the latest available NAV published by the Company. None of the investment is attributable to either the 2016 Realisation shares or the 2021 Realisation shares.

[makinbuks] 25/11/2021 08:48

Timing is crucial as well. The price of tech and software companies has rocketed and there must be a feeling a correction is imminent, led by the US and China majors. Cash seeking start ups might be significantly cheaper this time next year

[skyship] 25/11/2021 08:36

Precisely - but would welcome some reassurance from one of those SPACs before the New Year; though I realise due diligence always takes time....zzzzzz. Also costs, as Tiltonboy reminded me!

[makinbuks] 24/11/2021 18:30

Good to read and nice summary of why I'm here

[davebowler] 24/11/2021 12:12

Just received this from Liberum-

Meeting Invite


Date: 30th November - 2nd December

Summary:

Listed investment trust providing unique access to specialist acquisition vehicles
Manager has deployed almost £4bn of equity capital across 19 acquisition vehicles
Delivered a c.2.5x return on exited vehicles, with over £4.8bn of equity profits for equity holders
Strong alignment with shareholders, with 18% of the shares owned by Marwyn Partners
Attractive 7.9% dividend yield in a sector that typically doesn’t provide an income
Currently trading at a 37% discount to NAV, despite the majority of the assets being in cash
Currently four new acquisition vehicles ready to be deployed
Additionally, one remaining private asset, Le Chameau, which is performing well ahead of a likely exit in the next 12-24 months
Investment Case:

20% NAV total return over the last 12 months
Strong performance driven by realised gains on its Zegona investment, which completed at a significant uplift to NAV
The return for MVI shareholders represented a 1.4x cash multiple
Le Chameau is trading ahead of budget and is growing its online sales
The value of MVI’s holding was marked up 18% in H1, although is still valued significantly lower than comparable listed peers
New acquisition vehicles have been set up with improved structures to provide better alignment and greater certainty of execution
Expect these to execute on new deals over the coming 12 months
Liberum sales view:

The Marwyn team have built a long track record of executing on successful acquisition vehicles. NAV performance over the last 12 months has been strong, driven by the realisation of its Zegona investment, which added 14% to NAV in H1. Zegona was the largest shareholder in the Spanish telecoms company, Euskaltel, which was sold to MasMovil earlier this year. The deal resulted in a 1.4x cash multiple for Marwyn funds and proceeds will be reinvested into the existing acquisition vehicles.

The next 12 months should be an active period for the company, with four existing vehicles ready to deploy capital. One of the vehicles, AdvancedAdvT, has a management team in place, which will be led by the former Founder and CEO of one of Marwyn’s most successful past investments. It is expected the vehicle will be used to acquire a software business, where the team have significant experience. The remaining three vehicles are exploring potential investments in a number of attractive sectors and we expect further news on development over the coming months.

The outlook for Le Chameau looks particularly interesting, with sales ahead of forecast and very strong demand for their products. Capacity has been the only thing holding the company back from delivering even stronger growth. We believe an exit from the investment is likely in the next 2 years and valuation multiples in the sector have been rising steadily, which should be supportive of an attractive uplift on exit for Marwy

[tiltonboy] 06/11/2021 18:59

Cousin,
The dividend isn't covered, so in effect they are returning capital.

They will want to pillage more fees for a long time to come.

[cousinit] 06/11/2021 16:37

I also hopped on to the realisation bandwagon when ZEG came into play. I guess that confirmed the far better outcome of the realisation route compared to sticking with the ords from 5 years ago.

Clearly the dividend has been cancelled before so not sure how certain that is once the realisation hurdle has been negotiated, with that as an obvious bribe. My view is that maintaining long term income does ultimately come from preserving/growing capital so I'd rather have 100% of whatever's left back rather than a dog at a persistent (and justified) wide discount which may or may not pay a divi.

Can anyone explain how they can pay such a dividend within the strictures of the Masterfund but can't give a penny of actual capital back other than through the realisation route?

That might inform how things go in future with more shares in activist hands now Invesco are out of the picture. Have the management team managed to get hold enough shares to effectively block any 75% vote that might threaten the trough being taken away? What activist ploys are available here other than the realisation route?

[boystown] 06/11/2021 13:19

So for those of us, like me, who are essentially in this hoping for regular divi v.long term income - it would really make little sense to opt for the realisation shares?

[eezymunny] 06/11/2021 13:17

I agree with all of the above. The track record is poor. The realisation scheme is a nonsense, and unnecessarily complicated. It's one to generally steer clear of.

I'm just a happy bunny because I made a great turn buying the realisation shares after the ZEG disposal. I must be one of very very few who've done OK from this lot.

The more I practise...

[ceaserxzy] 06/11/2021 11:52

Surely it is far more effective, economical and beneficial to shareholders to simply return what belongs to the shareholders in the first place the cash in either increased normal or special dividends, or buybacks or tender offer, rather than go through the complicated, costly realization shares scheme. One should ask why they to to that length to the realization shares scheme at the cost of shareholders, and for whose benefit? This lot have cost the shareholders a lot of money in the last few years and most of their new activities ended up big failures and destroyed the company capital. I gave up on this value trap a couple of weeks ago at 121 p.

[eezymunny] 06/11/2021 09:47

Currently only Le Chameau I think, but that's a work in progress. After a long time in the doldrums it seems to be picking up...

[toffeeman] 06/11/2021 09:18

What do they have which are potential disposals?

[boystown] 05/11/2021 15:32

From my broker today:

"Under the realisation share offer, holders are being given the opportunity to make their election to receive realisation shares unconditional or conditional upon the realisation shares being admitted to trading on the specialist fund segment of the London Stock Exchange."

- can anyone explain to the class dunce (moi!) what I'm being offered?