Rural Equities Limited (REL)

[percy]

Yesterday's announcement that REL will be buying back [and cancelling] 1,515,677 [4.23%] shares at $4.20 from The Rotorua Energy Charitable Trust on the 20th January is positive for shareholders, as it will improve NTA, and give us a bit bigger slice of the cake,or in this case, of the farms.

[1leon]

It is in fact depressing the realty that REL shares cannot be disposed of by shareholders except at an enormous discount to asset backing- 24.5% discount to $5.57 according to last annual report of 30 June. And the buy back will continue the creep of the Cushing interests ever closer to extinguishing small shareholders . I see it was in March 2013 that I pointed out that Cushings could advance to 2/3 ownership in 3 years if buy backs continued. Yet again I see little prospect for shareholders other than that Cushings will ultimately take out the whole company at a gross discount to value. It a pity Unlisted has been allowed to survive. This company as a listed public company would be a totally different story and future.
QUOTE=percy;595652]Yesterday's announcement that REL will be buying back [and cancelling] 1,515,677 [4.23%] shares at $4.20 from The Rotorua Energy Charitable Trust on the 20th January is positive for shareholders, as it will improve NTA, and give us a bit bigger slice of the cake,or in this case, of the farms.[/QUOTE]

[1leon]

sorry duplicated.

[1leon]

I have just received REL letter to shareholders calculating the asset backing of $5.57 is a premium of 33% to the purchase at $4.20 rather than the discount I had mentioned. Curiously it makes no mention of the fact that the purchase will advance the per centage of the company held by Cushing interests and is disproportionately in their interests.

[GTM 3442]

Another reason to dislike buybacks. Give me the money anytime.

[malus]

Hmm "food for thought" Percy! Attached article suggests the farm might not be the only source of meat in the more distant future... still I doubt the senior Cushing - Selwyn will not be worried! :

https://farmersweekly.co.nz/article/...five-years?p=1

[percy]

Hmm "food for thought" Percy! Attached article suggests the farm might not be the only source of meat in the more distant future... still I doubt the senior Cushing - Selwyn will be worried! :

https://farmersweekly.co.nz/article/...five-years?p=1

Thanks for the link.
I don't know whether I would eat it.
Can't even buy a decent tomato now days.!
I recently sold my REL.Did well with them,but I have been a lot more aggressive this year.Getting pleasing results ,so will continue with selling poor performers and adding to my good performers.

[malus]

Thanks for the link.
I don't know whether I would eat it.
Can't even buy a decent tomato now days.!
I recently sold my REL.Did well with them,but I have been a lot more aggressive this year.Getting pleasing results ,so will continue with selling poor performers and adding to my good performers.

Clearly not for our generation Percy... but who knows what future generations will eat if they listen to the marketing... seems a target would the animal rights brigade!!

Interesting you have seen brighter lights elsewhere and moved on from this, I have never held but always interested in what Mr Cushing is up to.

[percy]

lol.
I am till with Mr.Cushing,as I brought SKL..

[Newman]

After the buyback of 1,515,677 [4.23%] shares at $4.20 from The Rotorua Energy Charitable Trust next January, Cushing family and the directors of REL together would hold about 70% of REL, and there would be nobody else holding a significant percentage of shares.

What would Cushing do from there? Further buyback from more than 1000 small shareholders? Would they get the 90% threshold before a compulsory acquition of the rest?

REL has been successful in selling farms and Fonterra shares at very good price and improving farms. With little debt would it buy farms when price is down?