"...your on-market strategy doesn't work, it is not viable, drop it."
It's not my strategy; it's Mesoblasts.
And that's exactly what I have said all along... it isn't viable.
To support this, if you read Kentgrove's website, they do not look at short term volatility (yes they actually say that), they are more concerned about long term gain.
Not only have I read Kentgrove's website, but I some time back subscribed to their investment reports, as well as the fund's IM.
Believe me, MSB is nothing like the sorts of businesses that they own (and they don't own too many... just 14, when I looked).
For starters, Kentgrove uses a strict valuation framework that is based on free cash flows (not unlike me).
In fact, a central plank to their investment process is "Valuation Above All Else" (again, just like me), and the way they value companies is - like me - using hard methodologies such as Discounted Cash Flows, EV/EBITDA, P/E, P/NTA).
Care to hazard an explanation how MSB - in its current state of financial evolution - scores on those valuation metrics that Kentgrove holds to be te cornerstone of their investment process?
"Firstly can we agree that MSB fits their investment strategy and as such would reasonably be considered a stock they would hold in their Kentgrove Capital Fund, yes."
Based on the factual evidence presented above, I'm afraid it is patently obvious why we won't be able to agree on that.
"As such the size of the upfront discount should not form a significant part of their reason to buy or hold a stock, they are obviously here to chase the bigger fish!"
Again, the question you actively avoid:
If MSB is such a delectably juicy fish to them, what have they been waiting for?
For Silvu to give them permission to buy stock?
9-month VWAP (9 months being the period since the announcement of the arrangement), has been $1.39. Why haven't Kentgrove been hoovering up as much stock as they want at that price?
MSB Price at posting:
$2.02 Sentiment: None Disclosure: Not Held
(20min delay)