Pact recent news, page-276

Hi William

Have courage and patience. As we have posted many times before, I am very confident that, eventually, RG will want to take PGH private by using one of the compulsory acquisition procedures in the Corporations Act. That would be subject either to a formal takeover process or the route where dissatisfied minority shareholders can object before the court. Either way all this material would have to be debated very publicly, with expert opinions. I have no idea when, but I am confident that RG wants to remove the 12% minority investors. I believe it’s very unlikely that he will tolerate us staying in forever. We, especially the TIC founders, would be an irritant to him.

Until then we must expect that the spin coming from RG and Pact will be largely negative: they will exaggerate the difficulties and downplay the successes- but they can’t fudge the figures, which are audited. The tactics will probably include no dividends forever. But even if PGH applies to delist from ASX, and succeeds with that, it would not be fatal, just inconvenient.

I am convinced that the 84c bid was far too low. I take no notice of comments from RG or his executives and advisers on the share price. I have built up a large PGH holding (mostly after the bid expired) and I’m happy to maintain my investment for as long as necessary.

Not advice. DYOR.