Ann: Change in substantial holding, page-4

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madamswer

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27/03/18

22:14

Post #: 32071978
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Originally posted by jg123456 ↑

whoa.

"This transaction results in the establishment of a strategic shareholder for the Company with the objective over time to assist the company to realise its growth strategies".

bullsh!t.
NCK doesn't need cash, and this deal gives them none.
It doesn't need a strategic shareholder - it's a retailer with established operations, and a happy/stable shareholder base. No reason any of that needs to change.
What growth strategies does KUKA need a 11% ownership stake to assist NCK with that it can't continue to contribute to from supplying some product to NCK (as it has for a decade).?
Please tell me NCK isn't going to launch retail operations in china, or some other near-to-China market which KUKA wishes to enter. That makes no sense from an NCK perspective, IMHO.

also, the announcement is silent on what price Scali sold at? (Presumably, this will come in time.)
A bit like the related party transaction @ Parramatta Road, this is another deal that seem more motivated by personal financial considerations of key insiders than the good of NCK (even if the harm to NCK is not readily apparent).

Discl. a large holder, but not a content one.

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"A bit like the related party transaction @ Parramatta Road, this is another deal that seem more motivated by personal financial considerations of key insiders than the good of NCK (even if the harm to NCK is not readily apparent)."

@jg123456,

Like you, I'd prefer it if the founding family members didn't reduce their interest in the business; however, like us, they are free to do as they please when it comes to their personal financial considerations.

So while I'd prefer it if it didn't occur, there are no laws against it, so there is nothing deceptive at work here; nor does it somehow causes harm to the business, as your post implies.

It is just one of those things, I think.

I certainly wouldn't predicate an investment decision based purely on this development.

NCK Price at posting: $6.96 Sentiment: None Disclosure: Held
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