Ann: VIT enters into Scheme Implementation Deed-VIT.AX, page-165

I've been out of reception for a week so I'm only just catching up on this news...

The 12 month results on page 5 should be sufficient to raise the SP above the IPO price and above the $2.25/share price at this point surely the vote will be no or a subsequent offer will be made by Shanghai Pharma and Primavera or another party. These figures are somewhat disguised in the recent announcement but they will be in full view when the annual report is released and hopefully this gets some exposure. There is a long time between now and when the voting happens.

For reference they are:

Net revenue was A$212.9 million, up 23.5%
Pro Forma EBITDA was A$23.9 million, up 15.6%
Pro Forma NPAT and EPS were A$13.1 million and 9.4 cents per Vitaco share respectively.

I'm not that surprised that Next is happy to take a profit and run but keep in mind that was based on the ~30% SP premium which is now closer to 5%. The wording on page 3 implies that there is an agreement for Next to not sell shares on the market, however their yes vote is only an indication not an agreement so this can change over the next few months.

$2.25 is a 12% profit for myself so it is a bit of a win/win situation here, I had intended to hold long term so I will be disappointed in that regard, however my confidence of the management team has taken a hit as it appears they quickly accepted this offer. I'll be voting no as I believe the long term potential here is greater than $2.25/share.