pif ag shocked

PIF AG SHOCKED AT NEWLY RELEASED TOTAL PIF-ARL ASSET VALUE



June 6, 2013


We don’t fully know why Wellington has sent out their Supplementary Explanatory Memorandum with such break-neck speed and with such little allowed time [12 June 2013] to return the new “pink” proxies. We do know Wellington states that “..additional information in relation to the Resolutions set out in the Notice of Meeting and Explanatory Memorandum dated 6 May 2013…has come to the attention of Wellington Capital Limited…in relation to the 5 Resolutions…”

In the Supplementary Explanatory Memorandum [SEM] mailed 3 June 2013 there is a page heading ”Proforma Balance Sheet of Asset Resolution Limited“. The “Total Equity” or “Total Net Assets” under that heading we understand represents an “estimate” by Wellington of the combined PIF-ARL assets as projected for 28 June 2013 IF the PIF EGM Resolutions are successful (i.e., IF the ‘FOR’ voted Proxies actually win at the EGM and not the ‘AGAINST’) and all remaining PIF assets are transferred to ARL

See SEM scroll down page 13 online NSX link: http://www.nsxa.com.au/ftp/news/021727065.PDF

The PIF AG has done a lot of work to try and get to the bottom of what the actual value of combined PIF-ARL assets really is. Much of that effort has been through piecing together previous bits of released financial information, doing some math and also submissions to ASIC. We estimated somewhere between 8 cents to 9.5 cents in the dollar. With the release of the SEM, 3 June 2013, PIF AG Executives are shocked to discover that Wellington estimates [projected 28 June 2013 after an EGM win] the combined worth of PIF+ARL as follows:

TOTAL NET ASSETS [PIF+ARL COMBINED] = $61,474,059 ($61.5M)

NET ASSET BACKING PER ASSET RESOLUTION LIMITED SHARE [PIF+ARL] = 5.26 CENTS (OR 5.26% OF YOUR ORIGINAL INVESTMENT)

We could speculate then that if ARL is worth 4 cents in the dollar then the remaining PIF assets are only worth 1.26 cents in the dollar??

The figures speak for themselves! Where did the asset value go we ask? How does Wellington explain the matter?
http://www.investorsactiongroup.com.au/?p=439