Thanks for your analysis as always @lost. From PAC's...

Thanks for your analysis as always @lost.



From PAC's announcement on 02/06/16.




To your point #5
"5. Will the differences in the business cause a strategic indifference between Rajiv and Tim leading to the dysfunction that existed at the top of Magellan for years?"


As someone who was an ex-MFG holder who was challenged to change my position on the stock around mid to low $30's (your analysis and the combination of MFG holders who were highly emotive and against your views helped me come to the conclusion and the shock resignation of Brett Cairns to effectively 180 and sell), I think the difference was Magellan investing into the fast-service Mexican chain was completely out of their wheelhouse and although profitable, a distraction. One would think GQG buying PAC wouldn't be a distraction, perhaps even some opportunities relating to distribution channels and flows.

I keep coming back to this line of strategic vision. Can't be 100% sure but the idea of Rajiv focusing on running GQG is a certainty and won't be distracted by this acquisition like Hamish was with Barrenjoey/GYG, I can see Paul stepping up to executive director of GQG and perhaps even chairman with Tim being the CEO of GQG and by extension PAC. There won't be any learning curve around their business/ portfolio companies of PAC.

I agree with the point about the economic sense of merger however I think it's a combination of a desire to unlock PAC's value as well as not selling to Regal which is motivating the purchase, if it made economic sense they would have made an offer months ago, it's got to be strategic.

I'm confident with Tim being the ex-CEO will know PAC's intrinsic value better than anyone at Regal.

Cheers,
Plague.