Rural Equities Limited (REL)

[percy]

[QUOTE=1leon;396255]

...we are all getting a bigger slice of the cake.
But will it be fair and when will we get it. I have owned my shares way back through NZ Rural Property Trust. I doubt anyone has been able to realise their true value and certainly the company shows it has no interest in seeing that. If you look at the history of REL since it merged with NZProperty Trust in Dec 2009 it has successively bought back/cancelled in excess of 2,000,000 each year. Cushing company H&G has advanced from 50.01% to 54.92% and if shareholders succumb to the latest offer it will advance to 58.25% It could easily attain two thirds within 3 years obtaining shares in this way at a 20% plus discount instead of paying a premium for increaed control. Frankly I think the larger slice you relish is going to cost you your voting power.
Incidentally Skyline which I also hold with only slightly less shares on issue manages to trade at a premium to asset backing but then it also pays a dividend, doesn't cancel shares and does not suffer the major shareholder stranglehold to the same extent. Liquidity, share trades, seem on par with REL. Skyline has major landholdings in Queenstown as well as property elsewhere.
Shareholder numbers of REL have moved down from 1550 to 1474 over the last 3 years- I note there are no sellers and hope modest trading reflects a preparedness to hold.

I think you will find/are finding David Cushing and the other fella are moving the company along very well.I think what they are doing is adding wealth for all shareholders. Any one owning 30% of a company really has control,so voting power well gone.
I do not hold [unfortunately] Skyline shares.

[1leon]

You might be correct that 30% is control but I think that is largely reliant on general shareholder inertia. There are still significant legal prerequisites/abilities hinging around the percentage held.What I am really talking about is a steady progression to compulsory accquisition.
Cushings previously controlled the management company of NZ Rural Property Trust so there is nothing new about management.If you think extracting over $3,500,000 from exiting shareholders is the way to create wealth for all shareholders I am considerably less sanguine about that. It may be that having recently bought at a discount you will be equally happy to exit at a significant discount. I am already a long term holder. What I would consider creating wealth for shareholders would be an oportunity to realise the real value of the shares.Cushing interests previously mopped up the Property Trust units at a discount. Now with the company structure they are able to to advance the same objective with the company's resources.
St John proprty Fund is another Unlisted with a major shareholder, there approaching 75%. Shareholders have been exiting at $1.20 to $1.50 against an asset backing of $2.43. . Is that wealth for all shareholders?
[QUOTE=percy;396337]

I think you will find/are finding David Cushing and the other fella are moving the company along very well.I think what they are doing is adding wealth for all shareholders. Any one owning 30% of a company really has control,so voting power well gone.
I do not hold [unfortunately] Skyline shares.

[percy]

[QUOTE=1leon;396564]You might be correct that 30% is control but I think that is largely reliant on general shareholder inertia. There are still significant legal prerequisites/abilities hinging around the percentage held.What I am really talking about is a steady progression to compulsory accquisition.
Cushings previously controlled the management company of NZ Rural Property Trust so there is nothing new about management.If you think extracting over $3,500,000 from exiting shareholders is the way to create wealth for all shareholders I am considerably less sanguine about that. It may be that having recently bought at a discount you will be equally happy to exit at a significant discount. I am already a long term holder. What I would consider creating wealth for shareholders would be an oportunity to realise the real value of the shares.Cushing interests previously mopped up the Property Trust units at a discount. Now with the company structure they are able to to advance the same objective with the company's resources.
St John proprty Fund is another Unlisted with a major shareholder, there approaching 75%. Shareholders have been exiting at $1.20 to $1.50 against an asset backing of $2.43. . Is that wealth for all shareholders?
What you have posted is correct.I never went near the company for the reasons you have given.
However,with David Cushing driving the company,share buy back,selling some farms,putting the capital into improvements,we should see the NTA improve,and further dividends.A lot more proactive management.
Whether or not Cushing takes us out,or lists it on the main board,we should see the share price move more towards the NTA.

[1leon]

There never have been dividends so I don't know where you get "more" dividends idea from.
It would be rather hard to see how the nta could not improve when there are no dividends and departing shareholders have to leave so much on the floor.
Just why do you think the price will move nearer nta as Cushing interests get a greater per centage? Why would they possibly want that? They are buyers not sellers.



[
What you have posted is correct.I never went near the company for the reasons you have given.
However,with David Cushing driving the company,share buy back,selling some farms,putting the capital into improvements,we should see the NTA improve,and further dividends.A lot more proactive management.
Whether or not Cushing takes us out,or lists it on the main board,we should see the share price move more towards the NTA.[/QUOTE]