Redde Northgate Share Discussion Threads

[fenners66] 30/12/2019 20:24

We all want to do that.

Which is why the bid should be rejected and dividends continued, however I am worried that either way BOD may use it as an excuse to cut dividends.

[pj fozzie] 30/12/2019 16:16

A student - ha! I wish. At the other end of the age spectrum I'm afraid. Retired. Living off my dividend income.

Cheers,
PJ

[fenners66] 30/12/2019 13:24

you a student fozzie ? I heard they are adept at voting multiple times.....

[skinny] 30/12/2019 12:38

So that's 3 votes..... :-)

[pj fozzie] 30/12/2019 12:36

Very sorry for repeated posting - was not intentional - not too sure why it came out three times! Seems to be no way to delete posts made in error. Cheers, PJ

[pj fozzie] 30/12/2019 12:33

I have voted no. I am strongly of the opinion that this takeover is not in the interest of long term Redde holders.

We will wait and see what happens.....

Cheers,
PJ

[pj fozzie] 30/12/2019 12:33

I have voted no. I am strongly of the opinion that this takeover is not in the interest of long term Redde holders.

We will wait and see what happens.....

Cheers,
PJ

[pj fozzie] 30/12/2019 12:33

I have voted no. I am strongly of the opinion that this takeover is not in the interest of long term Redde holders.

We will wait and see what happens.....

Cheers,
PJ

[toffeeman] 30/12/2019 11:29

No sane holder would vote for - unless you are in intsti holding both.

I voted no

[blobby] 30/12/2019 10:23

I've vote FOR the merger.

[dmdmdmdm1] 22/12/2019 12:58

In the words of Deborah Meaden, "I'm out" too

[approach3] 22/12/2019 10:56

I voted against.

[largeronald] 22/12/2019 10:30

A no from me too.

Anyone here voted for it?

[aleman] 21/12/2019 10:11

Posted my no votes in at the beginning of last week.

[approach3] 21/12/2019 09:42

I've done mine.

[skinny] 21/12/2019 09:18

Scheme of arrangement voting details now available on HL.

[aleman] 12/12/2019 14:41

A very cyclical company buying one which is not very cyclical at the top of the cycle IS a sensible business decision for NTG holders - but NOT for REDD holders.

It might be a merger but legally it's an all-share bid by NTG for REDD. The discount in REDD shares indicates scepticism. Historically, all share bids have a lower chance of success. Shareholders prefer cash and all the paper indicates lack of confidence or ability to raise any cash by the bidder. It smacks of desperation. I have cash available and was considering topping up in REDD before the bid news broke. Now I'm holding off. I don't want NTG shares at anywhere near their current price. I might still top up in REDD at these levels if the bid fails. In my view, the worrying NTG bid is depressing the REDD price. A few like yourself will arbitrage the difference. You might be successful - but I will be voting no.

[blobby] 12/12/2019 14:19

Aleman,

I'd say this is more of a merger between two consenting boards of directors rather than a "bid".

It's strange that there is such a difference in the relative share prices and that NTG shares are valued higher (a premium in my language, but let's not argue about that). I can only speculate that someone is still dumping REDD shares to anyone who will take them. I agree with you that it is unlikely that NTG shareholders think there is a chance that someone will come in with an alternative proposal that involves an offer just for NTG. Another possibility is the NTG shareholders think the merger is bad and that there is a chance that it will fail which is positive in their eyes.

For my part the merger seems like a sensible business decision and I've sold my NTG to purchase REDD shares to take advantage of the discount.

[bc4] 12/12/2019 13:19

Will 100p be the floor again? we will see

[aleman] 12/12/2019 12:37

NTG aren't at a premium. There's no bid for NTG shares. The NTG price sets the bid price. We are being offered 0.3669 NGT shares for each REDD one but the trading price is not matching that. That suggests some believe the bid will fail. (Trading at a higher price would suggest a hope of a counterbidder, so it looks like that is not expected.)

Bidding companies normally canvas large shareholders of the acquired companies to get behind the bid and then report those that approve as being pledged to support. (Sometimes they even pledge support and then RNS that they have changed their mind.) Why have none of the large REDD shareholders been reported as supporting the bid? It's unusual. 1.2% support is feeble.

[blobby] 12/12/2019 12:06

- It looks to me as if it is mostly the NGT shareholders who are holding out (their shares are still at a premium). However their CEO seems to have put this together and he wants to be off to his next project. If NGT shareholders don't want this they are faced with finding another CEO and all the uncertainty that goes with that.

- I can't see another bid coming

- I'm guessing that the larger shareholders are supporting this even if they are not doing so in writing.

[aleman] 11/12/2019 13:45

What makes you confident it will go ahead when the share price reaction seems to suggest scepticism and shares pledged in support amount to an underwhelming 1.2% of REDDE and 0.05% of NTG?

[blobby] 11/12/2019 13:39

It is strange that the market values the NGT shares higher than the REDD equivalent. I've sold my NGT shares and bought REDD as a result. Whether I like it or not I'm confident that this merger will happen.

[bc4] 11/12/2019 11:44

The share price is 105p nowhere near 80p

[aleman] 11/12/2019 10:49

NTG currently 307.75p. Therefore, the bid value is 112.9p. Even add in a 5.5p dividend if the deal is slow to complete, which is far from certain, and the share price is about 4p short. There seems to be plenty of doubt about the bid succeeding. (I still think the uncertainty about whether or not we are supposed to get the dividend is highly unusual and indicates muddled thinking.)

I'll be voting no.