Sir Ron and his mates is doing what Sir Ron has always done since I started following them 30-40 years ago. Identifying stuff trading at less than their true worth and patiently nibbling away.
EZA is now trading at less than the takeover offer. MVT can now buy cheaper than the takeover. Unfortunately, the EZA directors have gone and spent the cash on an asset that is not obviously worth the money they spent. It may be and maybe not.
I would not be surprised if MVT are angling to get a director on EZA's board. They may not have enough of the company to force the issue but EZA may agree. Personally, if MVT offered to put a director on-board I would gladly accept the huge experience that that would bring. If history is any guide, the targets of Sir Ron and his mates resist this until a shareholder vote forces the issue.
EZA is not the only play for MVT. MVT do not even publish the list and usually only reveal their hand when the stock market rules force them to. This has always been the case, why reveal your hand unless you have to or it gives some leverage?
Anyway, this game has waves of success and failure. In its heyday, people like Sir Ron, Holmes a Court, Elliot, Spalvins, etc. drove the entire market. Some would argue they made in more open and efficient, and I agree.
I keep MVT in my portfolio as part of my LIC strategy diversification. It is similar to the "corporate activist" strategy, which is the current politically correct term term for "corporate raiders". Whatever the term, they make cosy directors more serious about shareholder concerns.
Fun to watch IMHO.
MVT Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
