WHS - Warehouse Group

[ralph]

I suppose the Board are showing due diligence a day to late !!
Adamanten Capital A C & Tindall could be genuine contenders for the nz supermarket monopoly I would suspect these two have already had a chinwag or two on this before Friday and Tindall would know
the s p is ripe .
Fishing it is

[percy]

A couple of Fridays ago I put a buy order in at 98 cents near the end of the day.
It wasn't actioned and over the weekend I lost my nerve, decided I was nuts, and cancelled the order.
So I'm both nuts and not very clever.......

Welcome to TP [Team Percy]

[X-men]

Gosh!!! All NZx companies are being taken over!!!

Where else to put the money on??!!!!

[peat]

Me too peat.
In a quandary now as it has jumped past my 40% profit sell significantly ,and I had a longer term expectations .
Are you taking the advice not to sell , as it goes against my natural inclination .
This is the time when I need to go fishing
I would suggest you rethink the 40% profit sell. It means you'll never have a huge win. especially if you have longer term expectations
No I'm not selling yet maybe at $2

[Panda-NZ-]

The warehouse becoming the third supermarket?

https://www.newstalkzb.co.nz/news/business/supermarket-plans-sir-stephen-tindall-and-private-equity-firm-make-offer-for-shares-in-the-warehouse/

[Bjauck]

Wow - got to wonder if anyone is going to be in trouble for insider trading. The NZ share market is riddled with these suspcious spikes in price before momentous announcements, and presumably insiders profiting. Although not a WHS holder, I have had shares that have been similarly affected. It seems we have to accept it as part of investing on a small exchange.

[waikare]

I would suggest you rethink the 40% profit sell. It means you'll never have a huge win. especially if you have longer term expectations
No I'm not selling yet maybe at $2

I am not a very keen seller as I brought my first lot of WHS share on share offer back in November 1994, at $2.50 cps

[silverblizzard888]

(Non-binding) offer is out, ranging from $1.50-$1.70

https://www.nzx.com/announcements/434931

[Perky]

Double up as above

[Oliver Mander]

Takeover offer is out, ranging from $1.50-$1.70

https://www.nzx.com/announcements/434931
Just a quick comment - a big difference between a non-binding indicative offer and a 'takeover'

[850man]

(Non-binding) offer is out, ranging from $1.50-$1.70

https://www.nzx.com/announcements/434931

Will that price meet with sufficient shareholders approval to be carried through? Many are in it for more than $1.70 a share.

[silverblizzard888]

Just a quick comment - a big difference between a non-binding indicative offer and a 'takeover'

Thats true, not quite a polished offer yet.


Will that price meet with sufficient shareholders approval to be carried through? Many are in it for more than $1.70 a share.
They would have to offer more than $1.50 for sure given the share price is sitting at $1.45 and only just 4 months ago was trading higher. Very much taking advantage of the doom and gloom situation The Warehouse is in at the moment. I think enough shareholders will accept $1.70 to get pass the 75% majority, but some will have wanted $2 to be fairly compensated.

[Leemsip]

Seems like a low ball offer.... Board got to knock it back.
Underwhelming

[winner69]

Seems like a low ball offer.... Board got to knock it back.
Underwhelming

Rejection of previous offers in the past has not resulted in good outcomes for shareholders ……. company performance slowing fading into oblivion

[winner69]

Market was pretty clever yesterday bidding share price up $1.50 eh

More than 50% gain in a few days

[kiwikeith]

Interesting situation. There seems an opportunity to make some money here. However, if a bid does not materialize, you will left holding shares in company that has many shops with a 'tired' vibe and in need of rejuvenation.

[peat]

market appears to be discounting the informal non committed proposal quite markedly.

[Bikeguy]

Interesting situation. There seems an opportunity to make some money here. However, if a bid does not materialize, you will left holding shares in company that has many shops with a 'tired' vibe and in need of rejuvenation.

It’s a very fair point…this one is interesting…most longer term holders would need to clear more than 1.70 wouldn’t they? As in alot would still be under water at that mark?

[kiwical]

It’s a very fair point…this one is interesting…most longer term holders would need to clear more than 1.70 wouldn’t they? As in alot would still be under water at that mark?Same is true for shorter term holders. It was hovering at $1.70 in December, only started sliding from January this year.

[Sideshow Bob]

Dean is going to be busy - full time CEO at Ryman and then a bit of workload on the sub-committee at WHS. Although as many mention here quite quickly, it might be found to be underwhelming......

[Bikeguy]

Same is true for shorter term holders. It was hovering at $1.70 in December, only started sliding from January this year.

Yes, agree… it’s abit low surely?

[LaserEyeKiwi]

Not familiar with NZ takeovers/offers - would it be normal practice for the board to make a counter proposal back if the price is judged to be too low (which I think is true)?

[Bikeguy]

Is the big shareholder Tindall already endorsing this 1.50-1.70 range? Is he saying his 40 odd percent total shareholding is on board at this range? I may have this wrong

[silverblizzard888]

Not familiar with NZ takeovers/offers - would it be normal practice for the board to make a counter proposal back if the price is judged to be too low (which I think is true)?

Yes the board should be acting for shareholder interest and if they think the bid is too low, then they can counter.


Is the big shareholder Tindall already endorsing this 1.50-1.70 range? Is he saying his 40 odd percent total shareholding is on board at this range? I may have this wrong

Tindall isn't affected either way because he isn't sell any shares, so im sure hes on board. He just wants to turn WHS around and the current set up isn't enough to do it.

[malreid]

My taken on this is that Tindall ends up with 48.5% ("...up to 50%...") or thereabouts of the resulting company with the balance held by ACM or as treasury stock if that's the right term for it.

[Bjauck]

Market was pretty clever yesterday bidding share price up $1.50 eh

More than 50% gain in a few days
If you can find other good uses for the funds, and with an uncertain offer, from my past experience a bird in the hand can be worth two in the bush. I have seen takeover approaches dry up. However circumstances differ and this is not advice!

[Balance]

Essentially, the proposal is a privatisation of the Warehouse by a JV of Tindall & Adamantem. Depending on the funding structure (PE always tend to use as much debt as they can), Tindall will free up some of his capital tied up in the Warehouse.

There is considerable due diligence to take place so there’s going to be months yet of water to flow under this bridge.

Will Adamantem agree with Tindall’s perennially positive view of the Warehouse? Or is it really a case that the footprint is attractive enough to launch into the supermarket trade as speculated?

[Toddy]

Essentially, the proposal is a privatisation of the Warehouse by a JV of Tindall & Adamantem. Depending on the funding structure (PE always tend to use as much debt as they can), Tindall will free up some of his capital tied up in the Warehouse.

There is considerable due diligence to take place so there’s going to be months yet of water to flow under this bridge.

Will Adamantem agree with Tindall’s perennially positive view of the Warehouse? Or is it really a case that the footprint is attractive enough to launch into the supermarket trade as speculated?

So how does this work. Don't most supermarkets lease back the buildings, not own them due to the capital requirements.

I like the vision. It's like a property grab. Buildings would have to be converted one by one, sold off and leased back. Then an owner operator buys in.

At the end of the day, a major break up of the assets, repackaged, even a new supermarket NZX listing etc. And posh clean modern looking buildings in small town NZ.

Win win win.

[percy]

Supermarkets would require a lot of skills Tindall does not have.
Butchery,Bakery,Deli,Liquor,Fresh Fruit and Vegetables,
Incredible logistics the WHS have not mastered.
Capable staff.Good store layouts.
Nationwide set up costs,freezers,display cabinets,home delivery vans etc would require very deep pockets.

.

[Sideshow Bob]

Out of interest, does anyone know at what price/value Stephen Tindall got when they listed in 1994?

Probably already got more than $600m out of it.

[sunnysleeper11]

So how does this work. Don't most supermarkets lease back the buildings, not own them due to the capital requirements.

I like the vision. It's like a property grab. Buildings would have to be converted one by one, sold off and leased back. Then an owner operator buys in.

At the end of the day, a major break up of the assets, repackaged, even a new supermarket NZX listing etc. And posh clean modern looking buildings in small town NZ.

Win win win.

do you know how many of the warehouse's warehouses are owned /leased by them?
cheers

[Toddy]

I have no idea. Never looked at the WHS accounts as it's an investment I've never been interested in.

What I do understand is that the WHS has had its day. So any new model would help stop the shops from becoming ghost exercises.

[winner69]

do you know how many of the warehouse's warehouses are owned /leased by them?
cheers

They still own a bit of property but not sure how many

Have $755m lease liabilities though

[ralph]

Supermarkets would require a lot of skills Tindall does not have.
Butchery,Bakery,Deli,Liquor,Fresh Fruit and Vegetables,
Incredible logistics the WHS have not mastered.
Capable staff.Good store layouts.
Nationwide set up costs,freezers,display cabinets,home delivery vans etc would require very deep pockets.



. Hey Percy I think any consortium Adam ant whatever will have thought of this a long time ago and have something tasty lined up rather than a random punt .
Hopefully its Aldi lol oh Aldi do not have a bakery or butchery !!

[percy]

Hey Percy I think any consortium Adam ant whatever will have thought of this a long time ago and have something tasty lined up rather than a random punt .
Hopefully its Aldi lol oh Aldi do not have a bakery or butchery !!

Aldi would make it work.Bring it on...lol

[LaserEyeKiwi]

I have no idea. Never looked at the WHS accounts as it's an investment I've never been interested in.

What I do understand is that the WHS has had its day. So any new model would help stop the shops from becoming ghost exercises.

For context, WHS is still earning in the ballpark of $3 Billion revenue annually.

[Toddy]

For context, WHS is still earning in the ballpark of $3 Billion revenue annually.

So why would shareholders agree to the low ball offer then.

The Private equity boys will take all the lollies....

[Balance]

So why would shareholders agree to the low ball offer then.

The Private equity boys will take all the lollies....

Could be $5 billion revenues but what is pertinent is net profit and cashflow.