apg - no rush to kronos deal

Recent HC posts have criticised MT for apparently having told different people different dates for the announcement of the definitive Kronos agreement. Some had it by Xmas, others in Jan, and one I think in Feb.

However the latest (and only) APG release on this matter (18/11/10) states ? Further details will be provided when definitive agreements are finalised.?


I say to MT and the board : - ? Take your time ! You have a plan for APGs future, get the deal you want and then lock down the details. The details are important.?


From HC people who attended the AGM we have learned that this deal with Kronos has been building for well over 12 months. Apparently it would have been well and truly consummated by now if the $5m sale of WIM 150 had gone through in March.
I suspect $5m in APGs pocket would allow MT to drive a much better deal (for APG) with Kronos.
A Supreme Court decision on the AZC challenge to the WIM 150 sale cannot be far away (case heard in mid Dec). This could be a factor in the delay.


MT will not be negotiating with Kronos all by himself and in the end the deal must be approved and signed off by the board.
The board and secretary of APG have a wealth of experience. They are very well paid and very well incentivised to get a good deal for APG.
Terry Cuthbertson (chairman) ? has extensive international corporate experience and a huge amount of recent public company experience ( he is currently chairman/director of 7 other ASX companies.)
Robert Harrison (independent director) ? his resume lacks corporate experience. Hopefully he will be able to keep the deal simple and straightforward.
Nick Gaston (secretary) - his 37 years in public companies should be invaluable.
While the pressure may be on MT, I am sure he will have plenty of assistance and the responsibility for a good deal is shared across the board.


Recent events may also be fresh in the APG boards consciousness. They will be well aware of the distraction and financial loss involved in litigation. APG has funded 3 cases to the Supreme Court in 2010.
The agreement with Kronos could make APG, but the board would want to make sure that there are no details in the agreement that could harm APG.


The market is waiting for some guidance on APG. For APG shares to rise new potential shareholders (who don?t read HC) must be introduced to the APG story.
Foulthrow has recently mentioned that an analyst may??? do coverage of APG (last Stockbroker report APR 2004).
For analysis to occur, and the shareprice go up and stay up, the coming announcement must answer more questions than it leaves unanswered. (something lacking in previous APG announcements).
It will no longer be enough for APG management to put out releases that are very general and really define nothing. Posters on HC are then left to provide the definition (sometimes correct, sometimes partly correct, sometimes just plain wrong) and prices will go up, but then come down.

In the coming announcement only clear definition of what the agreement involves, defined timelines and financial estimates will be enough. (Trust me ? I am a company director- may no longer work).

A good ?definitive agreement? will move APG from a very speculative play, to something that will attract a new, different type of investor. Then we will see APGs true potential.

The APG board needs to take their time and deliver a good ?definitive agreement.?