Gatemore supports offer from HIG for DX Group
12/09/2023 12:03
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RNS Number : 1904M Gatemore Capital Management LLP 12 September 2023
12 September 2023
Gatemore supports offer from H.I.G. for DX Group
Gatemore Capital Management LLP ("Gatemore"), a fund manager controlling
(directly or via CFD) 19% 1 of the outstanding shares in DX (Group) plc
("the Company" or "DX") confirms its support for the non-binding and
conditional proposal from H.I.G. European Capital Partners LLP ("H.I.G.")
regarding a possible all cash offer for the Company at a price of 48.5 pence
per share (the "Proposal"). As has been announced by H.I.G., Gatemore has
signed a Letter of Intent to support the proposal which remains in effect.
Gatemore has been the largest shareholder in DX since 2017 when it led the
rescue of the Company with a £24 million convertible note financing, saving
over 3,000 jobs 2 . This followed a public campaign by Gatemore to replace the
Board of Directors, which ended with the appointment of Lloyd Dunn as CEO and
three other independent board members. Under this new leadership, the Company
achieved a remarkable turnaround whereby DX transformed into the market leader
in irregular dimension and weight (IDW) freight 3 and moved from losing over
£10 million in EBIT per year 4 to making over £30 million in EBIT per
year 5 . Revenues continue to grow at double digit rates, with healthy
operating profits and a strong net cash position 6 .
Liad Meidar, Managing Partner at Gatemore Capital Management commented:
"As has been announced, we are supportive of the possible offer for DX by
H.I.G., which is a testament to the exceptional turnaround that DX has
experienced since we invested in the business. We believe H.I.G. is a credible
backer for this company, which has built a market-leading position in the UK
and continues to deliver strong growth, going from strength to strength."
About Gatemore Capital Management
Based in London, Gatemore Capital Management is an independent investment firm
managing a turnaround and activist strategy focused on highly concentrated
positions in listed and privately held companies across consumer, industrial,
media, and technology sectors.
For media enquiries:
Greenbrook
Rob White, Teresa Berezowski
Email: gatemore@greenbrookadvisory.com
(mailto:gatemore@greenbrookadvisory.com)
Tel: +44 (0) 20 7952-2000
1 101,503,538 shares in addition to 13,250,000 CFDs.
2 Source: DX 2017 Annual Report.
3 Source: DX Interim Results Presentation slide 9
(https://investors.dxdelivery.com/download/companies/dxgroup/Results/DX_Group_plc_Interims_27February2023_FINAL.pdf)
, 27-Feb-23.
4 FY18 actual EBIT. Source: S&P CapitalIQ.
5 FY23 market consensus EBIT. Source: S&P CapitalIQ as at 11-Sept-23.
6 Source: DX Trading Update
(https://www.dxdelivery.com/news-and-insights/dx-group-plc-trading-update) ,
18-Jul-23.
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