Redde Northgate Share Discussion Threads

[pj fozzie] 29/11/2019 11:31

I agree with a lot of what Sphere25 is saying in his post.

I think Redde are undervalued and have the potential to recover in the medium term from the depressive 'Woodford effect'. Unfortunately, a significant % of my holding were bought at a higher price than the current price - but I was happy to keep holding, confident that the price would recover and meanwhile bank the dividends. This "merger" (looks like more of a takeover to me) locks in the losses and ends up with something that to my eyes looks less appealing.

Overall, I'm not particularly happy with this news. Maybe the board are aware of some potential issues in the future that I'm not seeing. Will hold, wait and see what happens for now....

Cheers,
PJ

[aleman] 29/11/2019 11:28

-- if the Effective Date has not occurred before 6 March 2020, being the record date for any Redde dividend that may be declared for the six month period to 31 December 2019, Redde Shareholders will be entitled to retain such dividend provided it is equal to or less than 5.5 pence per Redde Share (the "Permitted Redde Dividend").

This is odd. If they can do the deal quickly - we get less money! Never seen this before.

[riverman77] 29/11/2019 11:25

Whether the deal goes through or not, Redde shares are seriously under valued IMV so holding tight here.

[aleman] 29/11/2019 11:22

NTG down to 330p so bid value 121p yet REDD shares only 112p. Market is suggesting this will not go through? Or is an ex-dividend in March being discounted, i.e. 0.3669 NTG shares still get received PLUS the dividend?

[riverman77] 29/11/2019 11:01

They're looking at moving to 2x covered dividend so I'd estimate around a 5.5% to 6% yield at current share price.

[largeronald] 29/11/2019 10:56

Stuck with these mainly because of the excellent divi they pay. Anyone any idea how this merger is likely to affect that?

[trickyricky] 29/11/2019 10:13

Sold out here

[new life] 29/11/2019 10:09

Seems Redde shareholders got the better of this arrangement, not strange they had lots of buys recently on the run up to the announcement-I wonder when/what constitutes insider dealing?

[sphere25] 29/11/2019 09:35

Very disappointing. NTG has been a serial disappointer and highly mismanaged, leading to shareholder value destruction.Crystal Amber have been trying to enforce change their for a while. Some recent comments here:"In March 2019, for only the second time in its eleven-year history, the Fund judged it necessary to requisition a shareholder general meeting to effect change at the board of an investee company. This followed extensive attempts to engage with Northgate's executive and non-executive directors since the Fund's investment in April 2016. In response to the meeting requisition, Northgate announced the resignation of its chairman, Andrew Page, with immediate effect."Perhaps the future can be brighter but there is a lot of caution in that NTG report today too and they could be setting up for a warning IMO.I had hoped for a standalone recovery at Redde with the the expectation of the stock moving significantly higher from these depressed levels (due to well publicised sellers), not a shoddy merger with an outfit with poor form.Perhaps the directors weren't confident in the recovery then? I still feel we've been shafted here, but still managed to make gains here with numerous trades highlighted here down around 105 recently (posted the other day) as well as posts highlighting buys around £1 too.Ultimately, not happy so realising gains on all the recent positions at much lower levels than I thought.Perhaps it won't go through so will watch from the sidelines. Let's see how it goes

[alamaison5] 29/11/2019 09:12

bc4 Indeed and a nice consolidation at 115p for the same price...
Shame I sold half of my holding yesterday.

[aleman] 29/11/2019 09:11

Still 10p short of the merger price. Market seems sceptical.

[bc4] 29/11/2019 08:16

Will this flush out anybody else?

[trickyricky] 29/11/2019 08:03

Well the NTG share price hasn't reacted well so far, it's also there interim results this morning

[gary1966] 29/11/2019 07:45

At current share price it values Reddes shares at around 128p.

[alamaison5] 29/11/2019 07:45

Share price movement today? Would anyone dare speculate?

Don't forget that now are the proud owners of 0.36 NTG share for each REDD we own.
Funny enough, I sold half of my stock yesterday, cashing in a small profit.

[donemyhomework2] 29/11/2019 07:34

£10m pa cost savings are expected as per the RNS

[carcosa] 29/11/2019 07:34

NTG net tangible assets per share of 414p (CoB 350p)
...expect that the Merger will generate pre-tax cost synergies of at least £10 million per annum.
Cross-selling each other's services

[toffeeman] 29/11/2019 07:19

In theory, if it's a merger of equals - absolutely no effect whatsoever.

I can't see a big back office saving.

[trickyricky] 29/11/2019 07:16

Hmm, not sure what to make of this. NTG have too much debt for my liking?What impact will this announcement have on the REDD share price?

[skinny] 29/11/2019 07:05

.

RECOMMENDED ALL-SHARE MERGER
of
NORTHGATE PLC
and
REDDE PLC

Summary

· The Boards of Northgate plc ("Northgate") and Redde plc ("Redde") are pleased to announce that they have reached agreement on the terms of a recommended share-for-share merger of Northgate and Redde (the "Merger"). It is intended that the Merger will be implemented by means of a Court-sanctioned scheme of arrangement of Redde and the Redde Shareholders under Part 26 of the Companies Act, with the entire issued and to be issued share capital of Redde being acquired by Northgate.

· The merged entity, to be called "Redde Northgate plc", will be a leading integrated mobility solutions platform with the scale, reach and resources to provide customers with a comprehensive suite of mobility services and the potential to deliver substantial benefits to shareholders, customers, employees and other stakeholders.

· The Boards of Northgate and Redde believe that the Merger has compelling strategic logic and represents an attractive opportunity for both Northgate and Redde to enhance their proposition in the vehicle life-cycle and to deliver synergies, customer benefits and shareholder value.

The Merger

· Under the terms of the Merger, each Redde Shareholder will be entitled to receive:

0.3669 New Northgate Shares for each Redde Share

· Immediately following Completion, Northgate Shareholders will own approximately 54 per cent. and Redde Shareholders will own approximately 46 per cent. of the share capital of the Combined Group (based on the fully diluted ordinary issued share capital of Northgate and the fully diluted share capital of Redde, in each case as at the date of this announcement).

[toffeeman] 29/11/2019 07:04

Bloody el! where did that come from!?