BST discussion thread, page-44

allegro are a turnaround private equity fund run by smart guys, so they probably don’t mind getting out at this price, as they will make higher returns (20%+) doing their thing. I believe they have just started a third or fourth turnaround pe fund with approx 750 million in it and easily got funding so are v well regarded. They have already made on this deal in the ipo and with their recent 11% sale as they picked up best and less on the cheap in 17/18 from some South African holding company who hadn’t done much with it. They will have already made probs 3-4 times their money and that is why I am unconcerned with their selling.

blundy on the other hand got in for 40 mill at 1.96 pre ipo at a 10% discounted rate. He’s collected 23 cents dividends since so won’t be far down tho in nominal terms. He’s worth 2 bill+ is involved with lovisa who are doing great, accent group and others such as adairs in the past. He’s just bought 7.5 mill in city chic at basement prices and is trying to off load 2 western Australian cattle farms for a massive 1/2 billion+, 300 and 250 million each as beef is so expensive at the mo. he is essentially seen as the most successful retail investor in Australia.

I doubt he needs the money, unless he wants to make an audacious bid for another whole company and needs as much as possible with his farms not sold yet, so if he sells it’s probably due to one of the following reasons.

1) something he’s found out in the last 18m puts him off the business
2) he believes he can find a better investment opportunity at the moment with the cash, ie like buying up more city chic or equivalent
3) he’s somehow annoyed with allegro over something or was close to rod orrock and now less happy with him not at the head.

option 1 would be the most worrying as a holder.

of course more than likely blundy holds rather than sell out at a low valuation…. Or buys some more from allegro at 1.45 and things look decidedly better.

we will find out in the next week!