Ann: Shareholders to vote on Humm Consumer Finance transaction, page-82

Andrew Abercrombie is destroyer of capital.

The idea that we are best to reject the deal and allow AA to use our capital to make acquisitions and participate in the consolidation of the industry would be laughable if it were not so costly.

There are 495m shares in issue.
At 70cps that is $350 million, mkt cap.

When the company was floated there were 217 million shares at $2.00
Market cap $434 million

AA (who held 80%) received $345 million and reinvested $130 million for a 30% stake
That is he put in his pocket, $215 million.

He then proceeded to make acquisitions funded by raising capital.

In 2008 he issued 3 million shares at $0.48. raising $1.4. as part consideration for the Certify acquisition.

In 2010 he issued 31.6 million shares at $1.28 raising $40.5 million to take advantage of the fallout from the GFC.

In 2013 he issued 11.3 million shares at $3.99 raising $45 million.
Followed by a SPP raising $10 million for 2.5 million shares at $3.99.

In 2015 AA issued 68.2 million shares at $2.20 raising $150 million to acquire Fisher & Paykal finance book. AA kicked in $27 million @ $2.20.

Terrara Capital was issued 20 million shares in 2019 at $1.25 raising $25 million and John Wylie was appointed to the board.

Then in 2020 AA issued 123 million shares at $1.14 raising $115 million.

So all up...equity has grown from 217 million shares in 2008 to 495 million today.

AA has raised $820 million including the float...or $386.9 million since the float....

And what does he have to show for it????

A market cap of just $350 million.

Since the float AA has torched $470 million...and some want to let him keep on going with the same capital destructive strategy.

It's time he moved on...and us too.

The are several vacancies in Victoria for a well healed well connected Liberal.