their strategy is simple
- accumulate as many shares permitted on market
- then wait for a negative period contributing to a low share price
- make a takeover offer at a low ball price
- shaking out investors who are have lost confidence
- this allows them to accumulate larger volumes on the cheap
- resulting in a larger stake at low cost
Depending on circumstances they may be some more offers however to gain the knock out blow I feel they will need to offer premium. In which at that time would be
on less share volume resulting in acquiring the company at a bargain price overall.
Those who know that the intrinsic value is way more than the offers presented will hold waiting for the premium.
The founder of Dodo conveniently holds a blocking stake and was not interested in first offer. He has not publicly stated his intentions but it would surprise me if he accepted this offer. He is not a insto who is pressured by short term performance criteria. Being a smart business man he sees value buys a blocking stake and waits.
From the report I found interesting the view on Amazon arrival to AUS for PAS...
- PAS retail brands are niche and market is for older age group
- PAS has following for these brands
- Established online presence
- Customers tend to want to try on product
- Amazon will not have like for like product. Unlike electronics.
- Effect from Amazon seen as minimal
- Amazon range could provide wholesale range new distribution channel
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