News blog
Blue Oar/Dowgate
- BY: Andrew Hore |
- POSTED: 16/04/2009 |
Blue Oar says that it has acquired a 9.9% stake in its fellow Aim adviser Dowgate Capital.
Dowgate had already said that it had received an approach that it was taking seriously. Blue Oar has acquired its 9.9% stake at 6p a share – a total cost of £234,000. Blue Oar says it is considering a bid, which would have to be at least 6p a share in cash. There is the possibility of a share alternative – presumably to incentivise Dowgate management.
Dowgate said it had agreed to provide key information to the potential bidder – presumably Blue Oar - but added that it will have to sign a confidentiality agreement. There is no indication that that has happened yet.
Shares in Blue Oar rose 0.25p to 5p each, which values the company at £8.4m – well below its net cash pile of £13.6m. At 6p a share, the total cost of Dowgate would be around £2.4m plus costs.
At 6.25p a share, up 0.5p on the day and 2.75p on the week, Dowgate is valued at £2.47m.
Dru Edmonstone of Rivington Street Corporate Finance owns 11.2% of Dowgate and FinnCap chairman Peter Webb owns 9.16%. It is not clear if either of these individuals has sold all or part of their stake to Blue Oar. This should become clear in the next couple of days.
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