Which assets would they sell and lease-back?

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paradigmaus

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26/06/23

10:38

Post #: 68466785
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Originally posted by jnkmbx: ↑

The bidder statement mentions "Brett Blundy and Ray Itaoui intend to ... unlock unrealised significant value for all BLG Shareholders who remain invested following the Offer", which in my experience are code words for selling assets and entering lease-back arrangements.

Considering how Brett "coached" the co-founder of Honey Birdette to make the business a viable asset with the intention to sell it off to another party (ultimately, the Playboy Group), I do not think he is the type to hold onto an investment that he nurtures. His thinking aligns with that of many private equity/investment firms: dress up the business then sell it off.

I suspect that they prefer a complete take-over since it will facilitate the de-listing and then later sale of the company to a future buyer in a less regulated environment. If they cannot make the business viable following the take-over, they have the option to "unlock value", use the short-term capital gain injection to dress up the company and then float it again for a quick exit (with the new shareholders left holding the bag).

If we can keep their shareholding to less than 90%, then at least we will also enjoy the ride when they sell the business eventually.
In the worst case, they will reach the 90% requirement and acquire our shares at the offer price anyway.
Therefore, it seems to me that I have nothing to lose by holding on, and there is actually more upside on the horizon.

Some might say I should consider the share price and the retail environment, but quite clearly, Brett and Ray are not worried at all about that.
I found this comment from the bidder statement ironic, considering their desire to acquire all our shares and therefore all he risks of owning Best & Less:
"you will remain exposed to material risks and uncertainties associated with a continued investment in BLG if you do not accept the Offer and the current retail environment in which BLG trades is challenging"

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Which assets would they sell and lease-back?

BST Price at posting: $1.88 Sentiment: None Disclosure: Held
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0 Great analysis

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