Redde Northgate Share Discussion Threads

[rogthepodge] 29/11/2019 17:25

an opportunistic move by Avril? I wonder what Invesco thinks, and the substantial smaller institutional holders

[finkwot] 29/11/2019 17:09

So now in addition to Woodford and Invesco, we will have all the people who bought in for the AIM IHT exemption dumping their shares as NGT is main market.

I shall certainly vote against. The share price collapse earlier this year from the 160-190 range to the 90-120 range was always going to correct itself in time - that is why the current dividend return is so high. If they want it to come down to 6.5% all they need to do is offer more like 0.5 NGT per REDD.

[jam2day] 29/11/2019 14:39

OK got it - thanks

[minerve 2] 29/11/2019 14:34

jam

It is based on the assumption you are buying Redde shares today. I hope that helps. :)

[jam2day] 29/11/2019 14:33

So regardless of the share price divi is set at 6.5% ?

[minerve 2] 29/11/2019 14:24

The dividend is effectively being rebased at c6.5%. That's it!

[jam2day] 29/11/2019 14:20

% divi share price related an share price of 150 equates to a minor reduction in dividend to present.

[martincc] 29/11/2019 12:20

Well it looks like the market is underwhelmed by this deal.
NTG and REDD share price falling away.
I agree pretty much with Owenski, nothing in this for REDD

[aleman] 29/11/2019 12:11

NTG down to 325p so bid worth 119p plus a dividend or not. Only 7p difference now..

[owenski] 29/11/2019 11:54

Frankly, REDD seemed to be doing ok as they were, I wouldn't be buying NTG, why are REDD. Maybe they can synergise and make it good, but that is still some debt pile hanging over it, I'll leave this one to cleverer people to work out. ;-)

[owenski] 29/11/2019 11:51

Might be good in that it makes for better fleet pool utilisation.

But, that NTG debt pile relative to it's earnings makes it a dog. Are REDD marrying a dog.

I bought on the back of Woodford's disaster at these distressed levels, wasn't expecting massive capital appreciation, but bought for the relative high yield at such levels, thus it was purely an income play.

I don't know whether such payouts can now be sustained or not and as the model has changed unexpectedly, I've sold. NAI

[aleman] 29/11/2019 11:48

fizzypop - we get 0.3669 NTG shares for each REDD plus a dividend if they do it slowly but not if they do it quickly. It's madness. We're offered two prices. Which will we get? Plus there's whatever variation we get in NTG's share price - which is falling. Seems badly thought out - idiotic even.

[aleman] 29/11/2019 11:44

I'm inclined to vote against for what it's worth. There's no premium and no advantage gained that I can see. But why do our directors want to give up so easily?

[fizzypop] 29/11/2019 11:43

Aleman
Not sure how you calculated the bid value.
Could you explain. Thanks

[skinny] 29/11/2019 11:36

It all seems a bit 'hurried'.

[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?