Viburnum, page-2

This kind of activity is to be expected (and was mentioned a couple of weeks ago on this forum).

I was in VEI when Pulse Health/Viburnum made a cheeky bid for it. It wasn't successful, but they flushed out the Chinese buyer who came in and took out VEI with a 30-40% premium. A good result and Pulse Health/Viburnum still made money as they sold the controlling stake to the Chinese company.

The whole process was really about extracting the latent value in the company. A new buyer can inject funds and easily eliminate the debt hangover here which is suppressing the share price.

I think in CAJ's case, there are a number of potential buyers (in the industry) who can consolidate with their existing facilities. Even privatizing would reduce a number of ASX listing and *management* costs. I also wouldn't be surprised if Chinese money came in take out the company. CAJ have already expressed an interest to grow in that region. It is a very similar scenario to VEI, as the Chinese buyer was looking to replicate similar services in China using the Australian expertise.

It all makes sense in theory!