Australia's largest stock trading and investment forum Australia's #1 stock forum

AVN

Click for more information

0.00%

$3.41 aventus group

I also thought that the biggest winner out of the merger would...

First 3 Last

Share
Profile

Follow
jnkmbx

462 Posts.

21

13/01/22

18:23

Post #: 58844476
Share

Originally posted by eigenvalue: ↑

This proposed merger has been criticised by at least one institutional manager: AVN bought the external management rights not long ago, and now they are selling them?

I can't see the real benefits to either AVN or HDN, although HDN even less so than AVN (given the premium they are paying).

I can see substantive benefits to HMC. The combined HDN group will have to pay an acquisition fee of $22.3m to HMC. Also, HMC assets under management will increase massively and so will HMC earnings.

According to the scheme published, today, AVN net asset value will increase 2.3% post-merger. Pretty much everything relies on better growth post merger.

What exactly will the combined HDN group be able to do that HDN or AVN couldn't do on their own? Each REIT was large enough to take advantage of growth opportunities. We're talking $1 billion+ entities, here. Both had competent management, too.

Expand

I also thought that the biggest winner out of the merger would be HMC.
It seems frivolous: If I wanted to invest in HDN's assets I would be quite happy to buy it as a standalone stock.

I voted against the scheme, but if it goes ahead, I will be taking the HomeCo Scrip Consideration.
I may as well have more skin in the game and I might even buy some HMC while I am at it.

AVN Price at posting: $3.43 Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 1 more message in this thread...

First 3 Last

Add AVN (ASX) to my watchlist