"The proposed privatisation of beleaguered home-builder Simonds...

"The proposed privatisation of beleaguered home-builder Simonds Group is set to run up against some hurdles. Street Talk can reveal Queensland's biggest builder, Impact Homes, has quietly amassed a 4.9 per cent stake in its rival. Impact's intentions are unclear but a move up the register suggests the company wants a seat at the table.

Simonds' share register is already an interesting mix of rival building firms, opportunistic investors and long-suffering investors. McDonald Jones, the biggest builder in NSW , holds just over 5 per cent of the stock. A combination of Simonds, McDonald and Impact would create Australia's largest home builder.
Simonds has had a torturous existence on the ASX after listing in 2014 and selling shares at $1.78 apiece. Founder Gary Simonds collected about $150 million as part of the float that was led by Moelis and Morgans.

Gary Simonds last month reached an agreement with Melbourne's wealthy Roche family to take the home builder private. The Simonds' family vehicle and Roche Holdings settled on a 40¢-a-share deal under which a company owned 51 per cent by the Simonds family and 49 per cent by the Roche family would buy all outstanding shares of Simonds Group. Shareholders get to vote on the plan in early November.The Simonds family owns 39 per cent of the stock and will be unable to vote on the scheme.
Street Talk understands the offer, announced at the same time as Simonds posted a $14.9 million annual loss for fiscal 2016, has generated considerable anger among investors and faces an uphill battle to be approved.

Adding further spice to the situation, other major shareholders include hedge funds Regal Funds Management and Henry Morgan and Renaissance Smaller Companies fund.
Simonds and its independent board committee is being advised by Macquarie Capital, while Bell Potter is tending to Roche."