Thank you Tarvold - It IS interesting, and that’s a succinct and...

Thank you Tarvold -

It IS interesting, and that’s a succinct and intriguing power-pack of information

-The potential to swap shares between ZNO and AHX made me curious but what just took me on a Sunday morning excursion was your link to Auctus - AVC - ( with the nice humming bird on its’ webpage -a shamanic symbol of joy)

Auctus raising funds to make the PETstock investment may be normal practise?
- TPG bought Greencross after raising about 50% of the equity with a new Asian fund set up for Greencross and more [AFR 11/03/19 link]) so maybe it does not preclude AVC aiming at a backdoor acquisition of AHX

...Oh and PS !
PETstock CEO Shane Young bought into Auctus last year before Auctus bought the $5oM minority stake in PETstock (thought to be worth $150-$200M when it was mooted for sale in 2017).

Spoiler : The Australian 25/11/20 Auctus in raising for Pet Project

https://www.theaustralian.com.au/bu...t/news-story/80977701a1db3cf06df5e35114d34f2a
Auctus in raising for its pet project


Auctus is looking at a 5 per cent cash dividend out of the portfolio and a 15 per cent internal rate of return.

• EXCLUSIVE
  DAMON KITNEY
  VICTORIAN BUSINESS EDITOR
  
• 12:00AM NOVEMBER 25, 2020

Auctus, the ASX-listed investment group backed by a branch of the billionaire Wilson family, owners of bathroom products giant Reece, is raising up to $50m to support the growth strategy of Australasia’s largest family-owned pet specialty retailer.
Under the terms of the deal struck with the business known as PETstock, Auctus will work to generate investment in a specialty fund of between $30m and $50m, which will be used to invest in PETstock to provide equity capital to support its future growth.
It is the first time that PETstock, which has more than 170 stores across Australia and New Zealand providing products and services for all pet owners, has raised external capital outside of their friends and family network in its 30-year history.

“We believe that the quality and defensiveness of the PETstock business, experienced management, internal culture, family ownership and growth profile will appeal to the Auctus sophisticated and wholesale investor network,” Auctus told investors this week.

Auctus has grown to have more than $230m in assets under Management, focusing on opportunities across private equity, infrastructure and private real estate.

Auctus’s biggest backer is Wolf Capital, a private investment company established by Bruce Wilson in 2011.
Bruce and his brothers Alan and John Wilson and the Wilson family own 67 per cent of the listed Reece Group.
Bruce’s son Andrew Wilson, the managing director of Wolf Capital, became a non-executive director of Reece after his father stepped down from the board two years ago.

Wolf Capital owns more than 10 per cent of Auctus and was the first external shareholder into the listed group.
“They have built up their shareholding over the past two years as they have built up the confidence in what we are doing,” Auctus chief executive Campbell McComb said.

In August, Auctus further strengthened its balance sheet with a $4m placement to sophisticated investors, which was backed by PETstock chief executive Shane Young, Sydney investor John Plummer and Dorman Capital, the private investment office of the Dorman family. Bryan Dorman co-founded residential aged-care giant Regis Healthcare.

The funds established by Auctus are set up as special purpose vehicles. Each new transaction is housed in its own fund.

Off the back of reaching $100m in assets under management earlier this year, Auctus recently announced a $US50m ($68m) fund in a joint venture with US-based student housing asset manager Student Quarters.
“This is a really good asset class and we are now looking at setting up a feeder trust out of Asia,” Mr McComb said. “It will be a broad portfolio of student accommodation assets. The aim is to build the fund to $US250m of equity over three years.’’
He said COVID-19 had actually helped Student Quarters: the US firm has its accommodation off site from universities in major cities within a mile of the campuses, offering two to three-bedroom apartments.
Auctus is looking at a 5 per cent cash dividend out of the portfolio and a 15 per cent internal rate of return.

That’s some more intrigue?

In another action that may be relevant, Auctus last month flagged it intended to takeover the Asian-focused Odyssey Group ( 10/03/21 https://www.investordaily.com.au/mergers-acquisitions/48872-auctus-expands-into-asia)

According to the AFR Odyssey Private Equity was established in 2017 .
In a December 2017 report on Odyssey buying Australian camping company OzTrail, Greencross was mentioned as being one of the partners’ success stories...

.. “This is a great chance for Odyssey to work with our new partners and apply our strong outdoor leisure product knowledge and experience," Odyssey Private Equity partner Paul Readdy told Street Talk .​

"We are looking forward to working with experienced operators who have contributed to the success of companies like Greencross, Macpac, Petbarn and Lorna Jane," OZtrail general manager Andrew Whittaker said....”...​

​

.... “Odyssey Private Equity was created earlier this year after former Quadrant Private Equity co-founder George Penklis teamed up with Readdy and his two fellow former CHAMP Ventures operatives Gareth Banks and Jonathan Kelly.​

The Sydney-based firm is seeking to write equity cheques worth up to $40 million, and is targeting companies worth up to $100 million, including debt....”​

(05/12/17 https://www.afr. com/street-talk/odyssey-private-equity-sets-up-camp-with-oztrail-deal-20171204-gzxwd5)​

For me this fleshes out some of the potential spoken of by Dr Chris Richards in the announcement last Thursday notifying of the $6M capital raise. I may even get over my temerity and look to buy more shares.

Thanks again Tarvold for the links and @Saragian for your introductory chart the other weeks

cheers