Hi Manny. If someone has been able to buy shares at 5.50 or below for the last couple of months, can you explain the logic behind your thoughts that suddenly someone will come along and buy them at more than 6.50 instead? Is it some money laundering thing?
There isnt any firm offer at least when i last checked. There is an indicative and non binding offer by a couple of large shareholdeds who got shares for free and have now stepped away and so in theory can offload if they wish, or indeed buy more on market below the offer price. The stock isnt suspended you know.
Thats the facts. The speculative bit is why. The Eoy report will tell. Did going into supermarket sabotage the brand...the bridge too far? How has the UK performed. How has Mineral Fusion performed? Is there a China angle or has that fizzed? I agree with you in that i dont think the offer will go ahead or even of it was ever meant to. I just dont agree that someone else is waiting to pay even more. My opinion is the game is up. But thats an opinion, not a fact.
Hi Cirrusplane, Bennelong the major shareholder (19.6%) stated it is working closely with the Independent Directors.
In an AFR article dated 18/7 they stated that the Humble bid undervalued the company. They also stated that they would be happy to continue to hold as an ongoing shareholder.
Bennelong also said according to the article.
"We're working with the company to maximise the outcomes for our clients," he said. "The company has opened up the books to the consortium, but it's also opened up the room to a number of other private equity and strategic or industry players. That process has some time to run. We'll see what comes out of that and from there we'll make a decision as to how we proceed."
Another Bennelong statement from the article - While Bennelong is keen to see the highest bid possible, it is in no rush to sell, and would be comfortable continuing to hold the stock if no bid satisfied its valuation.
Its all games but Bennelong has indicated that others have entered the data room and that the Humble bid is inadequate. So its quite possible it could be rejected by the Board and a higher offer sought from Humble. Usually the first offer is what it is - just the first offer.
The market obviously has no faith in the Humble offer or believe any one else will acquire the company.
I would be comfortable holding the stock alongside Bennelong should no bid satisfy valuation.
Allegations outlined in the Sydney Morning Herald (11/7) allege that important profit/valuation figures were not provided to the market. There were also allegations of an emails indicating that offer could be started around $6.50 and might pitch up to $7. They said no one knows the business like us.
"Humble confirmed to shareholders the company was "on track" to hit a $1 million cost-saving target. But Fabregas' pile of documents includes a presentation used to court private equity investors where savings of $4.7 million were spruiked as well as another $2.6 million in revenue synergies.
Likewise Fabregas claims the company provided brand by brand profit descriptions to the private equity investors whilst refusing to do so for local investors or the analysts expressing frustration at the lack of detail on the earnings call."
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