Tegel IPO

[Balance]

NBR headline article today (behind paywall) - "Tegel Too Chicken To Tell The Truth".

[BlackCross]

NBR headline article today (behind paywall) - "Tegel Too Chicken To Tell The Truth".

"The sudden exit of the poultry producer’s chairman demands explanation......"

Is the basis of the article.

[hardt]

"The sudden exit of the poultry producer’s chairman demands explanation......"

Is the basis of the article.

Essentially was the same article that was written on the day of the departure...

[Balance]

Essentially was the same article that was written on the day of the departure...

Knowing Tim Hunter (one of the very few reputable tenacious financial investigative journalists left in NZ), he would have followed through with some hard questions to Tegel and received bugger all clarifications - hence the headlines.

Pretty damning for a company which has already failed to meet prospectus forecast not to be willing or able to answer questions from a journalist.

BTW - just saw drumsticks on sale at Mad Butcher for $2.99 kg (today only).

[blackcap]

Knowing Tim Hunter (one of the very few reputable tenacious financial investigative journalists left in NZ), he would have followed through with some hard questions to Tegel and received bugger all clarifications - hence the headlines.

Pretty damning for a company which has already failed to meet prospectus forecast not to be willing or able to answer questions from a journalist.

BTW - just saw drumsticks on sale at Mad Butcher for $2.99 kg (today only).

What I got from the article was that the major shareholder probably had a disagreement with the chairman (inference is that the chairman would not budge on position of coy and shareholders would not be happy with that because they may want to exit) All conjecture though but my partner knows James in a personal capacity and she said he does not take crap lying down. So probably what Hunter was inferring that there was a disagreement between chairman and 45% shareholder where it became untenable for chairman to continue. What does that mean for up and coming result one wonders?

[Balance]

I've been thinking a little more about this one. Surely Affinity won't be happy with this performance given they still hold 45%. I can't imagine them wanting to cut their losses and sell the rest at say $1 a share. I'll be very interested to see what they do after the annual results are announced! Also my predicted NPAT is 34 million so I think the share price is about fair. Will be interested to see what the final dividend payment is, perhaps another 4 cents?

Why wouldn't Affinity be happy?

They managed to hoodwink the market into paying what has turned out to be a very high price for 55% of the company?

IPO valuation of $551m for a company which is going to report a profit of $34m - PER of 16.2X?

The bloody cheek is the IPO price range of $1.55 to $2.50!

The $2.50 would have given TGH a valuation of $889m at $2.50 - PER of 21.7 times to 28.6 times on their downgraded forecast!

Turns out those who warned against the Private Equity sell down were right all along.

[blackcap]

Certainly does not say a lot about minorities being protected by a Board from yet another PE fund trying to get out?

It may not, although the independents here have a responsibility. I think James was in a position where he could do nothing else but resign.

[biker]

Knowing Tim Hunter (one of the very few reputable tenacious financial investigative journalists left in NZ), he would have followed through with some hard questions to Tegel and received bugger all clarifications - hence the headlines.

Pretty damning for a company which has already failed to meet prospectus forecast not to be willing or able to answer questions from a journalist.

BTW - just saw drumsticks on sale at Mad Butcher for $2.99 kg (today only).

Totally disagree with your view on Tim Hunter. He wrote a scathing article on RBC and Luke Moriarty at the time of the verdict of the staff suing Arborgen case.
The unfounded case was basically thrown out on appeal.
Nothing from Tim Hunter when that was announced because it directly contradicted his view.
I suggest he may be going off half c o c k e d here also.
I certainly wouldn't put any value on his sensationalist articles.
All of the above is opinion only.

[JeremyALD]

Well personally I think if they weren't going to hit forcast there would of been an annoucement by now. The financial year ended 30 April so they would have a fair idea by now. I still don't understand how there range was so wide but it's almost definite they are going to come in at the bottom end of guidance. Where to next year though? Who knows, but at around $1 you do start to see some value so long as there aren't more things Tegel is hiding.

I think the IPO was a bit of a sham but at the same time I still think Tegel is a fairly quality business that can turn it around in the next few years. It would probably be better if Affinity sold out in some ways so they can rebuild from scratch and have fresh leadership. I disagree that Affinity would of expected this SP performance in the IPO listing. At the end of the day they still hold 45% and do have to consider brand damage by a failed IPO.

[Balance]

Totally disagree with your view on Tim Hunter. He wrote a scathing article on RBC and Luke Moriarty at the time of the verdict of the staff suing Arborgen case.
The unfounded case was basically thrown out on appeal.
Nothing from Tim Hunter when that was announced because it directly contradicted his view.
I suggest he may be going off half c o c k e d here also.
I certainly wouldn't put any value on his sensationalist articles.
All of the above is opinion only.

I have followed Tim's articles over the years - all the way from Sunday Star Times to NBR - he has certainly saved me a few bobs over the years either from investing in or getting out of companies with questionable management.

Prefer myself to have a journo tackle management and companies on the hard issues rather than the mind numbing regurgitation of PR press releases masquerading as 'news' and investigative news. Tim is bound to get a few wrong there and then - goes with the territory.