North Atlantic Smaller C... Share Discussion Threads

[spartacus mills] 04/6/2021 10:16

My end of May NAV estimate is c.£61.50. Ergo discount currently around c.27%

[p1nkfish] 02/6/2021 23:15

All I can imagine for lack of buyback is tightness of supply and perhaps the capital will be allocated on a market fall or go out as dividend instead.

AJ Bell apologised for the mix-up.

[apple53] 02/6/2021 22:40

My note: "Although a private investor, I have worked for many years in the financial services industry, initially as an equity analyst and subsequently as a fund director.
For me, discount management is an important part of investment trust and listed fund investing. I have been a modest investor in NAS (Oryx) for some years, but significantly increased my holding (via ii and EQi) when I learnt of the buyback program. I think it is well-designed; large enough to be meaningful and not too restricted.
I believe it is equally important that the fund manager and indeed the board, to some degree, are co-invested. For me, therefore it is a positive that the ‘concert party’ accounts for such a large holding, and I strongly support the waiver of any commitment to make an offer for the entire company.

My only minor concern in some circumstances is that a very large holding might result in an excessive focus on capital preservation rather than growth, but I see no evidence of that at NAS."

[apple53] 02/6/2021 22:39

The waiver was voted against last year by a number of holders at the recommendation of their ESG teams, though thankfully they amounted to a minority. Without such a waiver, the buybacks could not continue without the Mills family selling proportionately.
The Board therefore sought opinions from shareholders to understand their views. I wrote a short email (I will paste in the next message) which the Chairman asked if he could forward to the relevant ESG teams.


Moving on, the million dollar question is why no buybacks since Feb 10th.

[strathroyal] 27/5/2021 12:07

Hope he doesn't take it private, as NAS and a number of its quoted holdings offer good value. More fun today with the potential bid for AUG (unfortunately one of those I didn't buy).

[topvest] 26/5/2021 20:24

This all seems rather spurious. Christopher Mills won't be taking NAS private at this point - why would he? Firstly, this is his life's work and secondly, he hasn't the firepower to do so in my view. He's worth a couple of hundred million tops. Finally, to indicate this without an RNS, if true, would be scandalous. Somebody has probably drawn the wrong conclusion from the annual rule 9 waiver or is spreading untruths!

[p1nkfish] 26/5/2021 10:01

Not all my fault. This is the wording "possible takeover" - they have since apologised.
It was worded poorly and immediately my antenna twitched.
It is Rule 9 waiver only.

"North Atlantic Smaller Companies Investment Trust Plc has announced that it has received details of a possible takeover offer from Christopher Mills and his close relatives. If the offer becomes official, it is expected that you will be given the choice to sell your shares to the new company with no dealing charges."

[p1nkfish] 26/5/2021 09:30

Well I'm not selling anyway, it read that he wanted to mop-up PI's on AJ Bell platform and go private. I misinterpted it as a move to go private - sorry - my mistake in interpretation.

[loglorry1] 26/5/2021 09:22

I think it is standard and anyway Mills hasn't got the firepower or the inclination to take it private.

[spartacus mills] 26/5/2021 08:51

The Rule 9 waiver is a standard procedure. It is to allow share buy backs by the company that would have the effect of taking Mills & Co's holding over 30%, without Mills then being compelled to make an offer for the company.

Hence unless I'm missing something it's the opposite of an application to take the company private. Its an application to allow them to not take the company private.

[exv] 26/5/2021 08:48

Hmm... is it any different from the Rule 9 waiver that was approved last year and in prior years?

See their website:

hxxps://www.nascit.co.uk/results-reports

As I understand it, the primary purpose of waiving rule 9 is to allow the company to continue buying back its own shares, even if such purchases would push a holder through 30% (which would normally require them to make a full takeover bid for the company)

Apologies if I'm telling you things you already know here

[p1nkfish] 26/5/2021 08:37

Offer would need to be above the market price else he won't get any takers.
Only going one way for now - up.

[p1nkfish] 26/5/2021 08:36

AJ Bell. Saw the secure message just now. It's genuine. One message about voting at the AGM and the 2nd about waiving Rule 9 so Christopher Mills and his close relatives can make a general offer to shareholders with no trading costs to the holders. Its preliminary, probably because Rule 9 needs to be waived first?

[exv] 26/5/2021 08:31

Who is your service provider, p1nkfish? How reliable a source are they? Pretty astonishing leak if so..!

[p1nkfish] 26/5/2021 08:23

china - no idea why no RNS. Only just seen the message.
It is genuine, I'm not pulling anyones leg.

[p1nkfish] 26/5/2021 08:21

What price will they offer?
It can't be todays price as those looking to sell can do so today at £42+.
NAV round £52.
I can"t see Mills family offering NAV so likely sub £50.

[chinahere] 26/5/2021 08:20

Interesting, but for something that important, why wasn't it RNSed?

[p1nkfish] 26/5/2021 08:19

Had a message from my service provider, Mills family will propose to take NAS off market and private. Change likely, I guess they think they will have less onerous reporting, lower costs and better returns if off market.

[topvest] 25/5/2021 21:24

Yes, it certainly is. The only risk is what happens at the end when Christopher Mills hangs up his boots / in a wind up scenario. Hopefully, a few years off. In the meantime, its a compounding machine!

[p1nkfish] 25/5/2021 21:22

There is insufficient premium placed on the experience of Mills and his management.

[p1nkfish] 25/5/2021 20:57

This was/is a keeper for me.
Bought, forgot and no regrets.
As good as you can say about any asset.

[topvest] 25/5/2021 20:35

Yes, agreed. This should be on a lower discount as the returns have been fantastic over the long-term. Christopher Mills is one of the smartest investors in the UK and very under-rated.

[spartacus mills] 25/5/2021 18:11

. I’ll re-iterate my view: in the current market the discount on NAS should be 15% - this takes account of the fee issues and the key man risk. It traded at a sub 20% discount for most of the 2010’s and sub 10% in the 2000’s. The >30% discount of the last few months is an aberration for NAS. Without any further progress in the portfolio we could easily see this priced at £50 in the next 6 months

[spartacus mills] 25/5/2021 18:10

Long term performance is epic - has beaten the S&P500 over the past 10 years while holding >10% in cash – as much as 30% cash in 2017. Per the annual report the intention now is to harvest some profits and cash levels may start to increase again.