European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

Daily Mail & General Trust / Event-Driven

The shares of DMGT suffer from a double discount because of both the conglomerate structure and the unusual governance (the founding family has a 36% economic interest but all the voting power).
This would be an opportunistic bid where the family uses the cash from the special dividend to fund their take-private deal, for the very same reason that the Daily Mail charges against American private equity plunderers of listed UK companies: price.
I estimate that the whole package would be worth 1131p-1277p, therefore a 1%-15% premium to the closing price on 14 July. Beware though of the many moving parts and lack of clarity on the tax consequences of the RMS divestment and Cazoo listing. 
The price mooted for the newspaper and the rump businesses does not look particularly generous on 0.7x EV/Fwd sales, 6x EV/Fwd EBITDA, as most of those businesses have been hard hit by the pandemic.
Considering that the Rothermeres own all the voting shares, it is highly unlikely that there will be any interloper risk. It also seems difficult that the family will abuse its power to rip off minority shareholders. I reckon that the initial figures may be sweetened.
Further upside (around 100p/share) may come from a fairer valuation of consumer publishing and the other businesses, that would take the total package to a 24% premium to 14 July closing price.

The shares of DMGT suffer from a double discount because of both the conglomerate structure and the unusual governance (the founding family has a 36% economic interest but all the voting power).
This would be an opportunistic bid where the family uses the cash from the special dividend to fund their take-private deal, for the very same reason that the Daily Mail charges against American private equity plunderers of listed UK companies: price.
I estimate that the whole package would be worth 1131p-1277p, therefore a 1%-15% premium to the closing price on 14 July. Beware though of the many moving parts and lack of clarity on the tax consequences of the RMS divestment and Cazoo listing. 
The price mooted for the newspaper and the rump businesses does not look particularly generous on 0.7x EV/Fwd sales, 6x EV/Fwd EBITDA, as most of those businesses have been hard hit by the pandemic.
Considering that the Rothermeres own all the voting shares, it is highly unlikely that there will be any interloper risk. It also seems difficult that the family will abuse its power to rip off minority shareholders. I reckon that the initial figures may be sweetened.
Further upside (around 100p/share) may come from a fairer valuation of consumer publishing and the other businesses, that would take the total package to a 24% premium to 14 July closing price.

Many Moving Parts in Rothermere's Bid to Take DMGT Private

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

The TPG Consortium (collectively TPG Group, Ontario Teacher’s Pension Plan Board [&amp; affiliates]) has <a href="http://www.asx.com.au/asxpdf/20170515/pdf/43j81hwvsxdhch.pdf" target="_blank">issued</a> a revised indicative proposal for 100% of <a href="https://www.smartkarma.com/entities/8996" target="_blank" data-smartkarma-citation="entities:8996:1">Fairfax Media Ltd (FXJ AU)</a> at A$1.20/share, less any dividends proposed or paid after 14 May 2017.The revised offer compares to the indicative <a href="http://www.asx.com.au/asxpdf/20170508/pdf/43j2zgsf5mgk1q.pdf" target="_blank">proposal</a> last week which involved paying cash for <a href="http://www.domain.com.au/group/" target="_blank">Domain</a> and FXJ's mastheads and leaving FXJ shareholders with regional newspapers, radio ops and other less-than-exciting businesses.  That clunky, inter-conditional proposal appears to have a faced a tepid reception from shareholders which TPG has swiftly (attempted) to remedy with a full cash offer.Below the fold, for subscribers, is a recap of the revised offer and comments on how it may be received.

The TPG Consortium (collectively TPG Group, Ontario Teacher’s Pension Plan Board [&amp; affiliates]) has issued a revised indicative proposal for 100% of Fairfax Media Ltd (FXJ AU) at A$1.20/share, less any dividends proposed or paid after 14 May 2017.The revised offer compares to the indicative proposal last week which involved paying cash for Domain and FXJ's mastheads and leaving FXJ shareholders with regional newspapers, radio ops and other less-than-exciting businesses.  That clunky, inter-conditional proposal appears to have a faced a tepid reception from shareholders which TPG has swiftly (attempted) to remedy with a full cash offer.Below the fold, for subscribers, is a recap of the revised offer and comments on how it may be received.

United Kingdom

ZPG Limited provides software and workflow tools to the property industry. The Company offers cloud based SaaS workflow tools and website products for property professionals. ZPG serves customers in the United Kingdom.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

ZPG Plc (ZPG LN)

Many Moving Parts in Rothermere's Bid to Take DMGT Private

The whole package could be worth 1131p-1277p, a 1%-15% premium to the 14 July closing price. Many moving parts and lack of clarity on taxes....

Jesus Rodriguez Aguilar

Fairfax – New Offer for New Media

The TPG Consortium (collectively TPG Group, Ontario Teacher’s Pension Plan Board [& affiliates]) has issued a revised indicative proposal for...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)