The difference between EGN and National Hire, which Dale exited with a profit, is that EGN is closer to Dale's core business of being a Caterpillar distributor, and hence mucking about in the diesel engine space. There was a tenuous nexus between National Hire and Caterpillar by virtue of Kerry Stokes having an interest in both National Hire and WesTrac, which has equipment dealer franchises in Western Australia, New South Wales, ACT and nine provinces in China. Dale would not want to tackle Kerry Stokes when there are cripples on the block who he can thrash with consummate ease.
Dale may simply want to own EGN in the same vein that he holds other businesses within the Elphinstone Group. Alternatively, EGN could be used as a backdoor listing vehicle. I have no idea of Dale's thought patterns.
In 2010 Dale offered 26 cents for Coote Industries shares, but he does not have to pay that much these days, and we poor EGN minority shareholders will probably have to accept such crumbs as are tossed at us.
EGN Price at posting:
92.0¢ Sentiment: Hold Disclosure: Held
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