yep PP, you are right. when LLC injected capital into LLP, it also sold its Retirement by Design business of R/V to LLP for a consideration of shares in LLP. It was valued by independant valuers at the time, and approved by LLP s/h. Almost certainly those ex LLC r/v have been devalued. So you will be right in thinking that we buy the LLC R/v from LLC at say $100, then what 12 mths later they are revaued at say $80, then LLC lob a bid in at NAB of $80.
The LLP directors will simply blame the GFC on the drop in value, and claim that the r/v were all valued by independent valuers.
What will be interesting to determine, is if the "independent" valuers used the same criteria and methodolgy to make the current valuions, as they did when they valued the LLC Retirement by Design r/v !
The other really big issue I have, is that the Independent directors have RECOMMENDED the offer by LLC, subject to an independent valuation.
The point is, they have determined that 31c is an adequate offer, without apparently speaking to s/h, and without knowing the outcome of the Indep valuation.
yet they give their recommendation - the result being that millions of shares have traded on the ASX as a result of that recommendation. if the Val comes in higher than 31c, then those sellers have missed out, based on what the directors recommended.
I think what the directors should have said was, - we have recieved an offer from LLC of 31c p/s, and we urge s/h to take no action until we obtain an independent val to determine if the offer is fair and reasonable.
But because they sit in the lap of LLC, they decide to recommend the offer of LLC beforehand. And note, they GIVE NO REASONS FOR THEIR RECOMMENDATION ! (except that it is above NAB) - so what?
LLP Price at posting:
30.0¢ Sentiment: None Disclosure: Held
