sapito
31 Mar 2017
Re: Reverse takeover of DX by Menzies The whole of Menzies, which comprises Distribution (MD) and Aviation, is currently valued at £560M. My hunch at this early stage is that the deal values DX at between £40M and £60M, ie 20-30 pps, and MD at between £160M and £240M, as boosted by the expected synergies.So I think you'll be happy, marktime, at the end of the day.
marktime1231
31 Mar 2017
What Gatemore thinks ... Gatemore has sent the following statement to Post&Parcel regarding the DX/Menzies announcement:“On the surface, the proposed combination of DX Group and John Menzies’ Distribution division looks like a bad deal for DX shareholders and a face-saving exercise for the DX board. We are highly suspicious about the timing of the announcement and the board’s motivations around it. They have already destroyed 90% of DX’s market value. Now they are further compromising shareholders by announcing a deal with so many loose ends and suspending trading on the shares indefinitely. It seems like an egregious case of the board front-running the EGM and force-feeding a deal which is not in the best interest of shareholders.“Furthermore, the timing of this announcement seems like an attempt to distract from terrible operating results. The systemic issues that we previously identified with the Company’s OneDX integration programme remain. While DX recently announced a new business win, it falls under its lower margin logistics unit. It will take many such wins to make up lost ground in freight and document exchange.“The announcements today make it clearer than ever that it is time for a new board to take over. The four nominees at the EGM have some of the best track records in the sector. We are optimistic that this exceptional team will properly assess all strategic alternatives while implementing a credible long-term plan to turn around the business and restore it to a higher level of profitability.”
marktime1231
31 Mar 2017
Re: Reverse takeover of DX by Menzies The interesting times we live in just got even more interesting.Not that I fully understand whether this is good or bad - a 4:1 issue of new shares will invite us all to participate in this, but I don't get where DX will find £60M cash when it has net debts of £20M. We are effectively financing the buy-in by Menzies Distribution, with a rights issue and debt. The real winner is probably Menzies Plc which is why their shares jumped today.The good news being the old Menzies management would be in charge under the DX brand. What are the Menzies Distribution numbers compared to DX's £142M flat turnover and low margin? I think MD also has flat turnover of about £1200M and also low margin eg 1%.Wonder what Gatemore will have to say, is this a better deal than what they had in mind? I suspect not.It would be clearer if someone just game in and put £40M on the table to buy out DX, happy to sell up at 20p.
Ripley94
31 Mar 2017
Re: Reverse takeover of DX by Menzies Thanks sapito .Saw news on share prophets just now.
sapito
31 Mar 2017
Reverse takeover of DX by Menzies So it looks like we'll go from owning 100% of DX to owning 20% of DX as significantly enlarged by the addition of Menzies' Distribution Division in what looks like a mutually beneficial merger. It's difficult at this early stage to properly analyse the financial effects of the proposal, but Menzies shareholders are already indicating their approval - their shares have jumped nearly 10% on the news. However, given the relative sizes of the two businesses, it also looks like it will be even better news for DX shareholders.I would therefore expect a similar jump in the currently depressed DX share price when the suspension of trading in its shares is lifted.
TX2
29 Mar 2017
Re: thats mega news Results date given in RNS 21/03 it is of course the last date under listing rules it has to report.
sapito
29 Mar 2017
Re: thats mega news TX2 - although the effect on the bottom line, though not insignificant, will not be enough by itself to turn things around for DX, the contract will at least be a strong psychological boost for the company after all the recent doom and gloom. The announcement also appears to be part of a welcome change of tone generally from the company, to be continued hopefully into the interims on Friday (assuming your understanding of the timing is correct). Perhaps we are also seeing the start of the beneficial effects of Gatemore's "activism", which will certainly guarantee an "interesting" few months ahead. Worth being on board just for the thrill of the white-knuckle ride!
TX2
29 Mar 2017
Re: thats mega news The contract represents just 3% of annual turnover & I suspect is on very tight margins.DX are I understand announcing interim results on Friday which may give a better idea of the companys position,it is a bit odd to give an update so close to announcing results.
sapito
29 Mar 2017
Re: thats mega news SP should soon be back in the teens.
one4all
29 Mar 2017
thats mega news BUY
sapito
22 Mar 2017
Re: Time to get in? He's gone from saying it's uninvestable (7 Feb) to it's uninvestable "at this juncture" and that it's "interesting" - so starting to hedge his bets a bit.
Ripley94
22 Mar 2017
Re: Time to get in? Steve Moore today on share prophets..... blogs re Gatemore news..... states its uninvestable ???
marktime1231
22 Mar 2017
Re: Good Gatemore Agreed this is a rare joy today, if I didn't have a small position in SCT I would be in the same boat. I will be adding to my holding in DX just as soon as the new ISA window opens.No sympathy for the current board/management who are complaining Gatemore's EGM action is disruptive. DX crashed from 85p to under 20p as long ago as November 2015, since when things have just got worse, so it is a bit late to say they are now working on a turnaround. The current lot have had their 3-strikes - they are inept and not to be trusted. Start again.Wouldn't it be great if private equity like Gatemore and chums saw the value in the DX brand and its market position, and came in to turn things around. I bet DX's lenders would be delighted.
sapito
22 Mar 2017
Re: Good Gatemore Following the slew of bad news which culminated in the failure to obtain planning consent for the new hub - talk about kick a dog when it's down - the requisition has at least, and at last, flushed out some positive noises from the company, As a result, at the moment everything's in the red today except for DX. How surreal!
marktime1231
20 Mar 2017
Re: Good Gatemore Ron Series the proposed new Chairman is involved with Clipper, a logistics business working with the likes of John Lewis. Clipper's most recent report says a) it is growing b) it is making an increasing profit c) it is paying a growing dividend. LIKE
