ARV - Arvida Retirement Villages

[flyinglizard]

NET ASSET PER SHARE IS $2.05, still positive earnings, PE 8.35. so how did they decide to sell at $1.70?

Daily Swap Rate was 4.95% on 18th of July

[Valuegrowth]

NET ASSET PER SHARE IS $2.05, still positive earnings, PE 8.35. so how did they decide to sell at $1.70?

Daily Swap Rate was 4.95% on 18th of July

They must have looked at their balance sheet too. When I buy stocks of a company, difiintely I'll look at balance sheets. Debt and cash flow are 2 main things that I will look for. Anyway, in my portfolio I'am more than happy to keep few aquistion plays. One thing I never kept stocks in my portfolio after aquistion. Instead rotated them to better places.

[winner69]

They must have looked at their balance sheet too. When I buy stocks of a company, difiintely I'll look at balance sheets. Debt and cash flow are 2 main things that I will look for. Anyway, in my portfolio I'am more than happy to keep few aquistion plays. One thing I never kept stocks in my portfolio after aquistion. Instead rotated them to better places.

They saw the $1.8 billion FLOAT and couldn’t contain themselves …must have that they said

[Valuegrowth]

Sorry l can't understand this float. I can understand the balance sheet. My portfolio filled with strong balance sheets. Do you think air and CVT also come up with some sort of aquistion story. Some private equity buy, develop and sell them to another party. I used to work in one place. After I left ownership has changed thrice. Under a good management we can expect growth. If ownership passes to the wrong party stock prices can go down rapidly.

[kiwikeith]

NET ASSET PER SHARE IS $2.05, still positive earnings, PE 8.35. so how did they decide to sell at $1.70?

Daily Swap Rate was 4.95% on 18th of July

The problem is the shares were trading around $1 so it is pretty optimistic to hope an acquirer will pay double the current share price so it can buy at NTA per share. The calculation of the NTA per share is not complete science. I doubt the acquirer is planning to do a "1970s Ron Brierley" and sell the assets one by one to unlock the hidden value being the difference between the sum of the parts of assets and the acquisition price.. I am a shareholder in Arv and I plan to hold on in the meantime with the expectation of receiving $1.70 per share near the end of the year. I could accept $1.60 now and remove the uncertainty of if the bid will proceed but would lose 10c or 6.25 percent for around 6 months - that is 12.5% annualised. If it starts to trade over $1.65 I will think about selling at that point.

[Perky]

Yes aware of that. I went to stonepeak web site and it says this. I reckon it’s the same bidder…just back with less conditions and cleaner offer at same price…and a ARV board like possums in headlights. Just my thoughts but I could be wrong. Would be happy with two bidders as I own some ARV

Stonepeak is a leading alternative investment firm

We specialize in infrastructure and real assets, investing capital on behalf of pension funds, endowments and other large institutions from around the world.

Confirmed by business desk today that stonepeak was the original bidder from last sept. When asked what changed from the original offer the chair said their last result was softer than anticipated

[Habits]

The problem is the shares were trading around $1 so it is pretty optimistic to hope an acquirer will pay double the current share price so it can buy at NTA per share. The calculation of the NTA per share is not complete science. I doubt the acquirer is planning to do a "1970s Ron Brierley" and sell the assets one by one to unlock the hidden value being the difference between the sum of the parts of assets and the acquisition price.. I am a shareholder in Arv and I plan to hold on in the meantime with the expectation of receiving $1.70 per share near the end of the year. I could accept $1.60 now and remove the uncertainty of if the bid will proceed but would lose 10c or 6.25 percent for around 6 months - that is 12.5% annualised. If it starts to trade over $1.65 I will think about selling at that point.

Take the money as a surprise windfall, invest into another mover

[X-men]

Vote yes people!!!! Sell now...move to other retirement stocks or others...so many undervalued stocks on NZX

HGH
SPK
gnE
Rym
OCA

Man....!!!! OCR cut is imminent this August or November!

[flyinglizard]

I remember that Abano Healthcare takeover case. The first offer from BGH was $4.45 and final offer was $ 4.75. That was during the covid.

For ARV, the first offer rejected by board, the second offer rejected by shareholders, particularly funds ? The interest rate is going down soon!!!! discount + prespectives , they should pay more.

[winner69]

When Arvida Board rejected the first $1.70 offer 10 Year Govt stock was about 5.1%. Today it's 4.4%. With this in mind you'd that the $1.70 which "meaningfully undervalued Arvida's intrinsic value" would be worth quite a bit more today.

But today the Chair said $1.70 was a "compelling price"

BusinessDesk asked what had changed the board's position in the interim, Beverly said the full-year result was "softer than expected".

So a pleasing result was actually in their view 'softer than expected' and is such the ‘meaningfully undervalued' $1.70 they rejected was just a dream.

You could say with the significant fall in interest rates from when the first offer was made and the 'softer than expected' full year result the Board has overseen a decent chunk of shareholder value in last six months ....maybe up to 50 cents a share.

Not a good look in my opinion. All the more reason shareholders should take the money and run ..... and thank their lucky stars they've done very well.