BB
Rather than Alpha I will attempt to point out a few flaws in this transaction.
A number of months ago the consortium I am aware of submitted an expression of interest to acquire RE of PIF and including the EOI was the offer to OCV to have a residual interest in vehicle consortium were establishing to enter into Australia.
The EOI was submitted to Louise Edwards head of mergers and acquisitions at MFS.
During this time Wellington Capital was acting on behalf of CS to get him onto board and out of courtesy the consortium also sent a copy of EOI to JH.
Response from MFS was they did not know the members of the consortium and required further information which was duly supplied. It was indicated at that point that OCV had numerous offers in relation to PIF and the number 25 was given by OCV employee.
Over the last few months the consortium has been stone walled with no phone calls returned or correspondance answered.
Consortium know that OCV did research on members of group as their European industry partners were contacted and international credit agencies checked.
With this group when you go up the food chain of ownership they get larger with ultimate ownership of lead consortium member a european bank.
During this process JH was supplied information and she was aware of this approach.
This proposal should have been given due consideration for two reasons.
1) It provided a residual interest in a going concern that not only was to manage PIF but also other assets. This in comparison to the deal struck appears superior.
2) The RE must act in the interests of the 11,000 people who rely on this income and the capital they invested. If this consortium has the capacity to bring significant funds and resources to fix underlying problems then they must be given due consideration.
JH by her own AFR statements if you read them carefully prove how corrupt the process was. She mentions that there were numerous approaches.
"no other party got close to due dilegence". She has information only available to OCV and its consultants.
This transaction provides no detail to PIF investors about how problems will be fixed only that she is going after what are close to 2 dead bodies (OCV and L and L)
It provides no cash to OCV and cashflow is now going out the door in fees.
These problems need serious money to fix them and JH needs to show PIF holders "the money"
The line she gave that "its a mess and will take a while to work out the position" is a classic line of a lawyer or an administrator.
They know the position and its time to tell the truth.
While I agree with Alpha about issue of providing a free option I guess I see it as a fundamental break down of directors of OCV and the RE of undertaking their duties,
OCV
octaviar limited
