WHS - Warehouse Group

[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.