Aquisition video, page-29

Never let the facts get in the way of delusional optimism. People are now talking of WTG handing itself over to Grech in settlement (so that he can mismanage the hell out of that too, then perhaps go after shareholders for letting him do this? It sure as hell won't be his fault).

A couple of points that might relevant.

1 No-one on this thread has mentioned the role of PwC, which was carrying out an independent in-depth investigation of QPPs accounting and other records at exactly the same time as SGH was carrying out its own due diligence, the bulk of which appears to have been the work carried out by 70 of its own solicitors on 8000 case files over a six week period across the whole spectrum, which SGH had chosen and paid QPP for the ownership of. I assume E&Y was engaged to carry out the bulk of the financial due diligence.

2 AG and others, when publicly commenting (in some detail when the transaction completed) on what SGH had relied on, stated that they knew all about the accounting and other issues but had formed their own views on PSD's profitability by applying SGH accounting and other policies to QPP's numbers, referring to PwC's work (which at that stage was still incomplete) and saying they knew the accounts were still under review. I ca definitely recall it being stated that the consideration paid was a 7.1 times multiple and that the acquisition was therefore significantly accretive to SGH's earnings.

3 Given that QPP's recently appointed new directors (all with unblemished records) knew of the interest the regulatory authorities were actively taking in the whole group, that they had appointed PwC to go through the accounting and other records with a fine tooth comb and that PwC's work was unfinished at the time the sale of PSD completed, how likely is it that they (WTG's directors) would sign up to warranties that left them exposed in the way any on here are suggesting.

WTG's directors would have had to be as daft as all the people on here claiming expertise on a subject they know precious little about, simply because there's a new straw to clutch at and AG has gone for it.

AG and SGH have gone down quite a few notches in my estimation. This looks to be either a cheap try-on or an act of desperation. Neither is encouraging. Grech had better be careful he doesn't get counter sued for either mismanaging or deliberately holding back NIHL income. 300 people working for months on NIHL cases and $1m revenue with no WIP recorded? Were they really that bad? The 53,000 cases were those taken on by PSD at a rate of one taken on out of every five referred.

Something isn't right somewhere. It might be AG's head.

all imho/ dyor