TENON

[Felix]

Interesting read Value Hunter thanks for posting the link. The article doesn't add much more to already published information however it is good to see there is some real interest in the company.

The key is for the company to deliver. They talk a good game, and have done so for years now, so it's time to post some good results.

[ari]

This was Feb 2012....The Empire Co., a wholly owned subsidiary of New Zealand-based Tenon LTD, has been selected as the exclusive distribution partner for Eastman Chemical Company’s new Perennial Wood decking product into Lowe’s stores.

And Feb 2014....The Eastman Chemical Co. is throwing in the towel on Perennial Wood, a line of outdoor wood products preserved through acetylation rather than pressure treatment with more familiar copper-rich chemical formulations and has been distributed in the Northeast and South Atlantic regions.

[Leftfield]

Interesting days when a company figures buying its own shares is a good investment?
Any thoughts to what's going on?


04/06/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3626545)


03/06/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3625664)


30/05/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3623902)


28/05/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3622061)


27/05/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3621063)


26/05/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3620281)


19/05/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3616050)


15/05/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3614412)


14/05/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3613544)


13/05/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3612639)


30/04/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3603831)


23/04/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3597375)


22/04/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3596455)


16/04/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3594176)


14/04/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3592368)


11/04/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3591463)


11/04/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3590857)


08/04/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3588951)


07/04/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3588141)


04/04/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3586703)


01/04/2014
RELINT: TEN: Disclosure of Relevant Interest (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3583629)


31/03/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3583218)


26/03/2014
BUYBACK: TEN: Notice of Acquisition of Shares (https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=3580454)

[psychic]

TENON CONTINUES TO ENJOY EARNINGS MOMENTUM

21 August 2014 - International wood products manufacturer and distributor, Tenon, said it expected earnings momentum to continue in 2015, after announcing a return to profitability in its full-year 30 June 2014 result today.

Tenon’s Chairman, Luke Moriarty, said “It is pleasing to see Tenon return to bottom-line profitability and in doing so more than double EBITDA1 year-on-year.

https://www.nzx.com/companies/TEN/announcements/254168

[Lizard]

Very upbeat AGM announcement. Should see it pick up again? If one believes the mid-cycle earnings scenario, it probably values out at up to $2.70/share here - more if a higher USD is factored in.

[Felix]

I attended the AGM today. My observations from the 30 minute meeting:

* They were not prepared to offer earnings guidance. This compares with last year's AGM where they did provide earnings guidance for the half year. The reasoning provided for this was because of the uncertainty about factors in the US such as the end of quantitative easing and stagnant wage growth (whilst unemployment is coming down, people have not been receiving wage rises for several years). They were very positive about the general outlook though given where the industry is sitting in the housing cycle and their own financial health.

* One shareholder asked for elaboration on the comment about growth by merger or acquisition being firmly on the agenda. The company didn't provide much elaboration except to say that generally as cycles move to the upside there is more merger and acquisition activity in their industry, and they have seen some of that in recent times. They said the larger players look for acquisitions in good times and generally there are more acquisitions because companies are financially healthy so can take on acquisitions. They mentioned that whilst they have eyes on other companies, given their financial health the eyes could well be looking back at them.

* Another shareholder asked about input costs, and specifically about how the 'wall of wood' might impact on their input costs. The company mentioned there is huge demand for wood in China and other places like the USA so there is sufficient demand for the 'wall of wood'. Because of this the company didn't envisage their raw materials costs reducing.

* There was no mention of increasing their equity exposure in the USA. This was mentioned at last year's AGM as a way of addressing their perception of share price value gap. I guess it might have dropped off their radar.

Overall I took from the meeting that the directors were very happy with how the company is travelling and they are excited about a continued housing cycle recovery having a positive impact on the company. Let's see if that positive outlook converts into increasing sales and earnings.

[ratkin]

Someone seems to have been impressed, shares shot up all be it on tiny volume.
Strange stock this one, seems to be hardly any activity with the shares.

[ratkin]

Good result, yet no mention on here. Quietly going along, reintroducing dividends and will benefit from the US housing recovery and the lower NZ dollar.
They the new too boring to talk about stock

[ari]

Good result, yet no mention on here. Quietly going along, reintroducing dividends and will benefit from the US housing recovery and the lower NZ dollar.
They the new too boring to talk about stock
Nice movement, although RBC has dropped 0.5, should have their results by months end.

[ratkin]

Why is liquidity so poor in this stock? zero trading today

[ari]

Why is liquidity so poor in this stock? zero trading today
Taken from RBC shareholders meeting Dec'14...Our top six holders own around 75% of our
issued shares – and unless they absolutely have to, they do not trade their shares, because
they believe in Rubicon’s future value upside. This means that the Company’s “free float” is
extremely small, and the share price can gap down on any particular day on small volumes.

Could this be the the case also for TENON?

[malus]

This minnow has been in my portfolio pond since I took a position in what was FFS (Fletcher Forests) when NTA verses share price was attractive with asset sales and shareholder distributions on the board table at the time... back in the day I was happy with the capital distribution. The resulting listing which washed out was TEN and it has languished in my portfolio since. RBC at one stage did offer to take the holding off my hands for $1.85 a share (in hindsight should probably have let them have it!)

Then in 2014, to keep this minnow, I needed to have the minimum number of shares, 2000. Decided to top up rather than sell back to the company.

And so it sat in the bottom of my portfolio pond (lost amongst the pond weeds!!)

Over the years the annual reports have come and gone… I have always noted the positive writings of those drafting the reports, even when they had to explain why the accounts weren’t so cheery and the company faced headwinds (US housing starts $US:$NZ exchange amongst other things).

More recently things looked up with the Company buying back shares and now a planned dividend (unimputed unfortunately), with promise of further dividends six monthly.

http://www.scoop.co.nz/stories/BU1508/S01071/tenon-announces-first-dividend-in-17-years-profit-trebles.htm

Well what to do with this minnow?

My calculation of PE is around 15.2 based on reported earnings for the past financial year and they have given a projection for the coming financial year that would have the PE at 10.6.

So I decided to fetch this minnow out of the pond weeds and feed it up a little bit (dip the toe old into the water… hopefully the little blighter doesn’t bite it off!!)

Bought another 4400 shares at $2.26 before record date… gives me 6400 shares going forward.

As always interested in others thoughts.

And for those that might get excited about this minnows prospects, beware shares turn over infrequently! And so please do your own research.

[Felix]

The quarter profit announcement says it all really. After a decade of pain Tenon is starting to ramp up EBITDA. Tenon is finally a growth company and the directors are doing their best to ensure the market notices through undertaking share buybacks, commencing dividend payments and seeking advice about how they can best close the gap between share price and their perception of true company value.

As Ari suggested, a big challenge is the lack of free float. It is so difficult to buy or sell a reasonable parcel of Tenon shares, and the buy/sell spread can be very wide. Metlifecare had a similar problem a few years ago and unfortunately I don't see how it can be rectified by Tenon directors unless perhaps Rubicon reduces their Tenon holding or distributes their holding amongst their own shareholders.

[beetills]

Their latest nzx announcement leads me to think that they may sell with hopefully a benifit to Rubicon shareholders.Then again,i may have misinterpreted the announcement.

[iceman]

Their latest nzx announcement leads me to think that they may sell with hopefully a benifit to Rubicon shareholders.Then again,i may have misinterpreted the announcement.

Yes the announcement certainly indicates that a sale is possible and agree this could be positive news for us RBC shareholders. And we sure need it !!

[ratkin]

They have been concerned for some time about this value gap. What sort of price would any sale achieve? Can only be north of the current sp. The lack of liquidity has not helped, how can people close any vaue gap when there are no shares to buy.
Currently not a single share available to buy

[Joshuatree]

Atm 11,022 bought and 16,000 for sale @ last price $2.70.

[ratkin]

Atm 11,022 bought and 16,000 for sale @ last price $2.70.

I grabbed 8000 at 2.70 , some more have appeared now. Should be a profit in it eventually

In August they had this to say
In this respect Edison Research issued a report on
Tenon in March that, based on comparable equity market earnings multiples and
the NZ$:US$ cross rate at the time, valued Tenon at NZ$3.75 - NZ$4.99 per
share. The Board is very keen to quickly close this gap and today we are
announcing two initiatives aimed at increasing shareholder value -

[malus]

;)
This minnow has been in my portfolio pond since I took a position in what was FFS (Fletcher Forests) when NTA verses share price was attractive with asset sales and shareholder distributions on the board table at the time... back in the day I was happy with the capital distribution. The resulting listing which washed out was TEN and it has languished in my portfolio since. RBC at one stage did offer to take the holding off my hands for $1.85 a share (in hindsight should probably have let them have it!)

Then in 2014, to keep this minnow, I needed to have the minimum number of shares, 2000. Decided to top up rather than sell back to the company.

And so it sat in the bottom of my portfolio pond (lost amongst the pond weeds!!)

Over the years the annual reports have come and gone… I have always noted the positive writings of those drafting the reports, even when they had to explain why the accounts weren’t so cheery and the company faced headwinds (US housing starts $US:$NZ exchange amongst other things).

More recently things looked up with the Company buying back shares and now a planned dividend (unimputed unfortunately), with promise of further dividends six monthly.

http://www.scoop.co.nz/stories/BU1508/S01071/tenon-announces-first-dividend-in-17-years-profit-trebles.htm

Well what to do with this minnow?

My calculation of PE is around 15.2 based on reported earnings for the past financial year and they have given a projection for the coming financial year that would have the PE at 10.6.

So I decided to fetch this minnow out of the pond weeds and feed it up a little bit (dip the toe old into the water… hopefully the little blighter doesn’t bite it off!!)

Bought another 4400 shares at $2.26 before record date… gives me 6400 shares going forward.

As always interested in others thoughts.

And for those that might get excited about this minnows prospects, beware shares turn over infrequently! And so please do your own research.

Well, well... looks like a bigger fish may wish to have a bite!!

[ari]

https://www.nzx.com/files/attachments/226199.pdf
Will a sale be in the best interests of shareholders? Just when the corner has been turned. Mind you, it's all been done before with FFS, FEG & Capstone.

[ratkin]

https://www.nzx.com/files/attachments/226199.pdf
Will a sale be in the best interests of shareholders? Just when the corner has been turned. Mind you, it's all been done before with FFS, FEG & Capstone.

Everything sounding very rosy, just a question of holding and waiting.

[malus]

Everything sounding very rosy, just a question of holding and waiting.

As you say Ratkin "rosy"... ASM report adds nothing new really... so we await the strategic review, the scope of this review widened it seems to consider if a "sales path" is in our best interests.

From the Chairs ASM report:


The purpose of this Review is to determine the riskadjusted
path most likely to close the share price value gap, and given the financial
complexity involved in answering that question, we have employed Deutsche Bank to
assist us in this endeavour. As it happened, following the announcement of the
Strategic Review process we received ‘in-bound’ interest in Tenon from third parties.
We obviously need to investigate that further, in order to determine whether a sales
path provides the best outcome for shareholders – and we have asked Deutsche
Bank to do just that for us by way of a formal process.
That process is proceeding well, to plan, and although somewhat gruelling for all
involved, we believe it will prove to be critical to value recognition for all Tenon
shareholders. Given the confidentiality of these types of processes, there is nothing
else I can say to you today, but we will obviously have quite a lot more to discuss
with shareholders in the New Year. We will keep you updated as events unfold.

I see 5000 shares or so turned over today at $2.73.

[ari]

Interesting update published yesterday by Edison Investment Research.

[Pricey]

Any suggested articles that discuss the state of the US housing market going forward?

[Balance]

Any suggested articles that discuss the state of the US housing market going forward?

Do a google search on US housing market and there's a wealth of information there to ponder and assess.

[Leftfield]

Latest results summary out;
The two highlight pages that precede this letter succinctly summarise the first six months ofTenon’s 30 June 2016 fiscal year. The short story is that the Interim period saw acontinuation of the early recovery in Tenon’s earnings, driven by a series of macro andcompany-specific factors, including –
 On-going growth in the US economy
 Continued recovery in the broader US housing market
 A strengthening of the US$:NZ$ exchange rate, closer to long-run equilibrium
 Commissioning of the first of two capital upgrades at our NZ manufacturing plant Implementation of core improvement initiatives (e.g. NA procurement)
 Winning new business in our National Home Centre business
 Territorial expansion in our Pro-dealer activities
Net Earnings after Tax trebled (compared with the cpp), and we recorded a 70%+ increasein EBITDA5 (excluding project costs and FX hedging contract losses). Whilst this was all verypleasing, it is only an early indication of what is yet to come in terms of future upside. Youwill know that we have already indicated to the market that our target for the current fiscalyear is to produce EBITDA5 in excess of US$20 million3 (excluding project costs and FXhedging contract losses), and our first-half result puts us well on track to comfortably meetthis goal.
It should be noted that Woolworths announced last month that the Masters homeimprovement chain in Australia (a JV with Lowe’s) is likely to either be wound down or sold.Tenon provides product and services to Masters, however that business is non-material toTenon’s earnings. As any exit from the business may require some (again, likely non-material) restructuring expense depending upon the outcome, this possibility is anadditional rider to the EBITDA guidance range noted above.
Our fiscal 2016 result will include the benefit of operational initiatives for only part of theyear (e.g. the Taupo capital upgrade projects and related earnings benefits are only phasedin as they are commissioned across the year), the new national home centre business won isonly commencing now, and the benefit of the recently strengthening USD will similarly onlyhave been progressively realised across the fiscal year. Accordingly, the EBITDA ‘run rate’for Tenon should be somewhat higher than the fiscal 2016 EBITDA level reported.
With that in mind, we have also previously publicly stated that we see our mid-cycle7EBITDA capability as being in excess of US$50 million3, and we remain very comfortablewith that statement, particularly given Tenon’s presence in both the DIY / retail and newhousing segments of the US market, and the organic growth and earnings upside each offers us.
Last August we announced the commencement of dividend payments, and we paid our firstdividend of NZ5.0 cps (in November) in respect of the financial year ended 30 June 2015.Today we are now announcing an interim dividend in respect of our fiscal 2016 year. At NZ5.75cps, this interim dividend represents a 15% increase on last year’s final dividend, andis evidence of the confidence we have in the Company’s future earnings profile. Thisdividend will be paid on 4th April 2016, to Tenon shareholders on the share register as at5pm, 29th March 2016.

[ratkin]

All looking very positive

[beetills]

Is any of the above report good news for RBC?

[biker]

Is any of the above report good news for RBC?

It means over $2.2mil of extra funding from the interim dividend for a start.

[GTM 3442]

Is any of the above report good news for RBC?

beetills, nothing is ever good news for RBC!

[/cynicism]

[ari]

beetills, nothing is ever good news for RBC!

[/cynicism]

Exactly...my wait for good news has been 12 years!

[ari]

It's now been 9mths since Tenon requested Deutsche Craigs and Deutsche Bank to do a strategic review....must be something to report soon.

[Balance]

It's now been 9mths since Tenon requested Deutsche Craigs and Deutsche Bank to do a strategic review....must be something to report soon.

They said 2nd quarter which means a month and half to go.

[ari]

Ta Balance

[Balance]

http://www.marketwatch.com/story/on-sale-at-home-depot-and-lowes-the-companies-shares-2016-05-18

Outstanding results from two of Tenon's biggest customers (direct & indirect) - augers well for a continuation of earnings growth for the company.

[Felix]

I'm keen to hear the results of the strategic review, which should be announced within the next six weeks. I do wonder though if they have painted themselves into a corner with continually referencing closing the valuation gap between current share price and the Edison research valuations. Those Edison valuations are pretty lofty. It means they would be hypocritical recommending a takeover offer unless it is pitched significantly higher than the current share price.

I'm really pleased for the company that they were able to survive several years of difficult times and now get to reap the rewards. I really hope they don't sell shareholders short and let overseas interests take them over cheaply just as profits start ramping up.

[ari]

I'm keen to hear the results of the strategic review, which should be announced within the next six weeks. I do wonder though if they have painted themselves into a corner with continually referencing closing the valuation gap between current share price and the Edison research valuations. Those Edison valuations are pretty lofty. It means they would be hypocritical recommending a takeover offer unless it is pitched significantly higher than the current share price.

I'm really pleased for the company that they were able to survive several years of difficult times and now get to reap the rewards. I really hope they don't sell shareholders short and let overseas interests take them over cheaply just as profits start ramping up.

Will be an interesting watch.......will history repeat itself...Fletcher Forests-Fletcher Paper-Fletcher Energy & Capstone Energy

[Balance]

I'm keen to hear the results of the strategic review, which should be announced within the next six weeks. I do wonder though if they have painted themselves into a corner with continually referencing closing the valuation gap between current share price and the Edison research valuations. Those Edison valuations are pretty lofty. It means they would be hypocritical recommending a takeover offer unless it is pitched significantly higher than the current share price.

I'm really pleased for the company that they were able to survive several years of difficult times and now get to reap the rewards. I really hope they don't sell shareholders short and let overseas interests take them over cheaply just as profits start ramping up.

http://www.wsj.com/articles/u-s-new-home-sales-at-fastest-pace-in-eight-years-during-april-1464098576

Fundamentals keep getting better and stronger for Tenon so a sale should fetch a good price.

A month to go on Tenon's indication to the market of news in Q2.

[ari]

[QUOTE

A month to go on Tenon's indication to the market of news in Q2.[/QUOTE]

Well that's that quarter virtually over!

[ratkin]

[QUOTE

A month to go on Tenon's indication to the market of news in Q2.

Well that's that quarter virtually over![/QUOTE]

Perhaps they had their review but the results were not to their liking.

[Balance]

http://www.wsj.com/articles/u-s-new-home-sales-at-fastest-pace-in-eight-years-during-april-1464098576

Fundamentals keep getting better and stronger for Tenon so a sale should fetch a good price.

A month to go on Tenon's indication to the market of news in Q2.

https://www.nzx.com/companies/TEN/announcements/284994

August now - dragging on.

[ratkin]

https://www.nzx.com/companies/TEN/announcements/284994

August now - dragging on.

Wonder if they already know the result of the review and are planning its release at a time it will cause maximum impact

[Balance]

Wonder if they already know the result of the review and are planning its release at a time it will cause maximum impact

Or negotiations are dragging on.

[Felix]

Seems to be taking a long time to undertake a strategic review. Makes me think they know the outcome and need to get majority shareholder Rubicon across the line with it. After all Rubicon have majority control so a takeover or merger will require their support.

[biker]

Or, in conjunction, they are also rationalising Arborgen, which is taking extra time, with a view to finally extracting value from the lot.
If so, Rubicons day could be close.

Disc. Totally wishful thinking on my part.

[ari]

FFS consigned to history....lets just hope there's better times ahead than the last few years under FFS.

Fek, I started this thread with that note back in Feb 2004. Hopefully only a couple of weeks to find out results of Strategic review, and which direction it will be from now! Or is it going to be another debacle like FEG and FFS?

[Balance]

Fek, I started this thread with that note back in Feb 2004. Hopefully only a couple of weeks to find out results of Strategic review, and which direction it will be from now! Or is it going to be another debacle like FEG and FFS?

Or a FLP where the information flow was kept incredibly tight, and the takeover price was almost double the market price?

To be a fly on the wall!

[Sgt Pepper]

Just curios as to why Rubicon shares have not ramped up, they own 60% of Tenon after all?

[Leftfield]

Just curios as to why Rubicon shares have not ramped up, they own 60% of Tenon after all?

Sgt Pepper, I'm interested on what basis you have for the expectation that Rubicon/TEN SP should rise?

[Sgt Pepper]

Sgt Pepper, I'm interested on what basis you have for the expectation that Rubicon/TEN SP should rise?

there has been speculation about a possible takeover of Tenon at a healthy premium, would the majority shareholder not be the beneficiary

[Leftfield]

there has been speculation about a possible takeover of Tenon at a healthy premium, would the majority shareholder not be the beneficiary

Thanks, appreciate your explanation. As a TEN holder, I hope you are right and half expected this possibility given the ongoing review and awaited report.
That said it is only speculation.
When/if the speculation becomes fact, then maybe we'll see the SP gain you expect.

[beetills]

New house sales in U.S.A. surge to a nine year high.Should be good news for Tenon and by default Rubicon.

[Balance]

New house sales in U.S.A. surge to a nine year high.Should be good news for Tenon and by default Rubicon.

The big play is still whether Tenon gets sold by 31 Aug.

If not, it will be about fundamentals which are good and what capital initiatives Tenon will make to reward long suffering patient shareholders.

[ari]

The big play is still whether Tenon gets sold by 31 Aug.

If not, it will be about fundamentals which are good and what capital initiatives Tenon will make to reward long suffering patient shareholders.

Where do you think Arbogen will come into the mix, I really did think they would have been listed by now.

[Balance]

Where do you think Arbogen will come into the mix, I really did think they would have been listed by now.

That's more Rubicon rather Tenon.

If Tenon gets sold, would expect RBC shareholders to get a very nice capital return with some retention of funds to see Arbogen through to listing.

[beetills]

Waiting,waiting waiting.......

[Felix]

According to the NZX listing rules Tenon needed to announce their annual result by today. I wonder if the annual result will be announced tomorrow before market opens, perhaps with a further delay to the strategic review outcomes.

There must be some serious negotiating or discussion taking place. I'm looking forward to knowing the outcome of this drawn out strategic review.

[ari]

https://www.nzx.com/files/attachments/242560.pdf

[Balance]

So US$110m offer for North American operations with Australasian operations still to be decided on.

[ari]

Looks like..... 'hold all bets till November'..........

[Balance]

Looks like..... 'hold all bets till November'..........

Valuation range of $3.01 to $3.25 - realistically will be $3.00.

[Felix]

On first read it feels like the US$110m offer is too low. In the 2015 annual report the Chairman referenced the $3.75-$4.99 valuation calculated by Edison Research, but today the company is valued at $3.01-$3.25 assuming the offer proceeds.

If Tenon is going to pay out 10c-12c dividends each year that are still growing, and we're in the early stages of the housing cycle, I'm tempted at first read to not accept the offer. Of course Rubicon's share of the vote will effectively decide on the offer anyway so how small shareholders vote might be a moot point.

[ratkin]

Valuation lower than had hoped, was expecting north of 3.50. Took advantage of yesterdays liquidity to exit, seems like not much upside in continuing to hold.

[silverblizzard888]

Capital return of up to $100 million

https://www.nzx.com/companies/TEN/announcements/290870

[Leftfield]

Capital return of up to $100 million

https://www.nzx.com/companies/TEN/announcements/290870

Yee ha! Bring it on. I'm glad I held onto this one.

[ratkin]

Yee ha! Bring it on. I'm glad I held onto this one.

The market does not exactly seem thrilled with the news, only up 3 cents today

[ratkin]

Anyone done the math?
At first glance it looks a little complicated

[ari]

Anyone done the math?
At first glance it looks a little complicated
I've been crunching numbers but are none the wiser considering back in April '15 Edison value was $3.75>$4.99 and Rubicon .64 > $1.06. At this rate Rubicon are unlikely to make .50c

[ratkin]

I've been crunching numbers but are none the wiser considering back in April '15 Edison value was $3.75>$4.99 and Rubicon .64 > $1.06. At this rate Rubicon are unlikely to make .50c

The declining exchange rate against the US dollar also not very helpful. The Edison value turned out to be overly optimistic, with 3.20 looking more realistic

[Leftfield]

The market does not exactly seem thrilled with the news, only up 3 cents today

Today's market doesn't reflect those who hold TEN at av prices considerably less than today's SP.

That said I'm a tab nervous about what the exchange rate could do.

[ari]

The declining exchange rate against the US dollar also not very helpful. The Edison value turned out to be overly optimistic, with 3.20 looking more realistic

History shows rate falls around election time.

[malus]

Notice of ASM and Grant Samuels Report arrived in the mail today... only had a quick glance so far...

Blue Wolf offer, if approved by shareholders would result in:

1. Tenon repaying debt
2. $1.10US capital return to share holders (@71c NZD:USD) that's likely to be $1.55 NZ (tax free)

Remaining Clearwood business will continue under Tenon subject to value review ( which may lead to sale recommendation - or not) Issue being ongoing trading illiquidity. Grant Samuels gives indicative value : NZ $1.38-$1.62 per share

Therefore Tenon value indication $2.93 - $3.17 NZ (From my reading of the Grant Samuels report)

Although the Chairman's letter says $3.01 - $3.25 NZ??

Anyway, last time I looked Rubicon held 60% of the shares and so I assume they will determine the vote outcome re resolution 1. Sale of US Operations and if favourable resolution 2. Capital Return.

[Sgt Pepper]

Notice of ASM and Grant Samuels Report arrived in the mail today... only had a quick glance so far...

Blue Wolf offer, if approved by shareholders would result in:

1. Tenon repaying debt
2. $1.10US capital return to share holders (@71c NZD:USD) that's likely to be $1.55 NZ (tax free)

Remaining Clearwood business will continue under Tenon subject to value review ( which may lead to sale recommendation - or not) Issue being ongoing trading illiquidity. Grant Samuels gives indicative value : NZ $1.38-$1.62 per share

Therefore Tenon value indication $2.93 - $3.17 NZ (From my reading of the Grant Samuels report)

Although the Chairman's letter says $3.01 - $3.25 NZ??

Anyway, last time I looked Rubicon held 60% of the shares and so I assume they will determine the vote outcome re resolution 1. Sale of US Operations and if favourable resolution 2. Capital Return.

Any guess on the value added to Rubicion shares?

[malus]

Any guess on the value added to Rubicion shares?

Hmmm... here's my stab at it, perhaps someone else can double check:

According to Morningstar TEN has 65m shares on issue and RBC owns 39m (60%) of them... so if you said TEN has value of $2.95, that would equate to RBC value of $115m. Again according to Morningstar, RDC has 615m shares on issue so 115/615 = 18.7cents/per RBC share??;)

[beetills]

Tenon s.hareholders vote for US business sale and capital return

[Leftfield]

Nice Christmas present for TEN holders as the sale proceeds and share buy-back hit their accounts today ..... and now news of yet a further capital return to share holders in 2017. Thank you TEN a 4 bagger investment for me with more to come!! Happy. Happy.

23 December 2016 - Tenon announced that it has completed its court-approved capital return and share cancellation. This share reconstruction and cash return of US$71 million pro-rata to Tenon shareholders (paid today), arose out of Tenon’s strategic review of its North American distribution operations, which resulted in the business being sold, on 1 December 2016 (New York time), for US$110 million.
In relation to the second strategic review that the Company is currently undertaking, over its NZ-based Clearwood operations, Tenon announced today that it has entered into exclusivity with one party, with the intent of signing a binding sale and purchase agreement. The proposal is conditional upon a number of items (including Tenon shareholder and court approvals) which Tenon is currently assessing.

[Felix]

Assuming the party offers within the range identified in the valuation report, here are my calculations for what it means for capital return -

Valuation report suggested a valuation of US$63.3-$74.7m for the NZ operations. Tenon's 23 December announcement talks about adverse currency movements impacting valuation so let's conservatively take 10% off the valuation, bringing it down to US$57.0-$67.2m.

Tenon talks about US$8m wind up costs. Subtracting this from the revised valuation brings us to US$49.0m-$59.2m. The current USD exchange rate is US69c but again let's be conservative and convert to NZD at 71c. This gives us NZ$69.0m-$83.4m. There are now 32.4m Tenon shares on issue so dividing the NZD amount by total shares gives us a potential capital return of $2.12-$2.57 per share to Tenon shareholders.

We know Tenon's offer for the US operations was at the bottom of the valuation range and the buyer of the NZ operations has the advantage of knowing the valuation range, so I suspect the buyer will also offer at the bottom of the range. This suggests that the current share price of $2.30 is probably fully valued.

As for what this means for Rubicon, their CEO has stated that further capital returns will be distributed to shareholders. Rubicon hold 60% of Tenon's shares so should receive something in the range of NZ$41.4m-$50.0m. Based on their 409m shares on issue this equates to a potential capital return of 10-12cps for Rubicon shareholders.

As both a Tenon and a Rubicon shareholder I'm keen to see what offer Tenon can negotiate with the potential buyer. Bring on the new year.

[ari]

Assuming the party offers within the range identified in the valuation report, here are my calculations for what it means for capital return -

Valuation report suggested a valuation of US$63.3-$74.7m for the NZ operations. Tenon's 23 December announcement talks about adverse currency movements impacting valuation so let's conservatively take 10% off the valuation, bringing it down to US$57.0-$67.2m.

Tenon talks about US$8m wind up costs. Subtracting this from the revised valuation brings us to US$49.0m-$59.2m. The current USD exchange rate is US69c but again let's be conservative and convert to NZD at 71c. This gives us NZ$69.0m-$83.4m. There are now 32.4m Tenon shares on issue so dividing the NZD amount by total shares gives us a potential capital return of $2.12-$2.57 per share to Tenon shareholders.

We know Tenon's offer for the US operations was at the bottom of the valuation range and the buyer of the NZ operations has the advantage of knowing the valuation range, so I suspect the buyer will also offer at the bottom of the range. This suggests that the current share price of $2.30 is probably fully valued.

As for what this means for Rubicon, their CEO has stated that further capital returns will be distributed to shareholders. Rubicon hold 60% of Tenon's shares so should receive something in the range of NZ$41.4m-$50.0m. Based on their 409m shares on issue this equates to a potential capital return of 10-12cps for Rubicon shareholders.

As both a Tenon and a Rubicon shareholder I'm keen to see what offer Tenon can negotiate with the potential buyer. Bring on the new year.

Thank's Felix....that covers
clearwood business, but did you calc potential return to Rubicon shares for Nth American sale?

[Balance]

As both a Tenon and a Rubicon shareholder I'm keen to see what offer Tenon can negotiate with the potential buyer. Bring on the new year.

Big volume buyer at $2.47 - looking good for the new year!

Sellers all appear to have disappeared for now.

[Xerof]

Have a read of the announcement posted after Friday close.

https://www.nzx.com/companies/TEN/announcements/295257

They re-iterate the theoretical ex-price, after all the changes made, of $2.05 vs $2.50 current market price.

Seems to me they are concerned buyers are getting ahead of themselves.

They are perhaps implying the Clearwood negotiation is for less than expectations, but they are explicit about the costs to wind-up, and as yet unrealised currency losses

But feel free to come to your own conclusions

[biker]

Luke Moriarty though, did stress at the RBC ASM how good the clearwood business is and that they would be more than happy to hold onto it if there wasn't a buyer. On that basis alone, you would have to assume the price is being set at an attractive level for Tenon.

What a strange announcement on Friday night. After years of talking up the TEN share price, now they are talking it down and simply stating again what the market has already had very clearly spelt out to it previously.
It has the appearance of feeling obligated to make a statement-
as if anticipating an accusation of not keeping the market informed.
And, if they really wanted it to be noticed, why not wait until Monday morning?
Very odd indeed.

[Felix]

I took away the same message from Friday's announcement that you did Xerof. To me it seemed a redundant announcement because it adds nothing to the previous announcement, other than strongly implying that the share price is getting ahead of itself. People are entitled to bid up the share price if they so choose based on individual decision making.

[Balance]

I took away the same message from Friday's announcement that you did Xerof. To me it seemed a redundant announcement because it adds nothing to the previous announcement, other than strongly implying that the share price is getting ahead of itself. People are entitled to bid up the share price if they so choose based on individual decision making.

A higher share price puts pressure on the Board to deliver a good outcome - especially the long suffering shareholders who have put up with decades of bad performances from Fletcher Challenge through to Fletcher Forest to Tenon.

So it will suit the Board better to have a lower sp when the sale announcement comes through - looks like they are delivering.

And right through the decades of bad performances, the Board and management continued to cream fees and benefits.

Bet you that a big part of the US$8m winding down costs pertain to paying out for executive options etc etc.

[Balance]

Luke Moriarty though, did stress at the RBC ASM how good the clearwood business is and that they would be more than happy to hold onto it if there wasn't a buyer. On that basis alone, you would have to assume the price is being set at an attractive level for Tenon.

What a strange announcement on Friday night. After years of talking up the TEN share price, now they are talking it down and simply stating again what the market has already had very clearly spelt out to it previously.
It has the appearance of feeling obligated to make a statement-
as if anticipating an accusation of not keeping the market informed.
And, if they really wanted it to be noticed, why not wait until Monday morning?
Very odd indeed.

Re-reading the Grant Samuel valuation report. I think Board and management are trying to be cute with their announcement and indications of lower valuation for Clearwood.

More later.

[Xerof]

Anyone have a link to the first Grant Samuel report?

[Balance]

Anyone have a link to the first Grant Samuel report?

Here yee go :

https://www.nzx.com/files/attachments/246982.pdf

[Xerof]

Ah, so thats where it was. Thanks Balance:t_up:

[Balance]

Re-reading the Grant Samuel valuation report. I think Board and management are trying to be cute with their announcement and indications of lower valuation for Clearwood.

More later.

Page 30 of Grant Samuel Report :

"movements in the New Zealand dollar impact Clearwood’s earnings. Clearwood’s largest markets are the US and Europe.
In the year ended 30 June 2016 the average exchange rates achieved were US$0.67 and €0.65. If the NZ$ strengthens against these currencies Clearwood’s earnings will decline.
Currently the New Zealand dollar has strengthened to around US$0.71, but has weakened slightly against the Euro to €0.64,
however, the earnings offset to these adverse movements inFY17 will be the annualised EBITDA benefit (US$4.3m) from the edger and ripline technolgy upgrades commissioned progressively during FY16 (only US$1.8m benefit included in FY16)."

Given that the Grant Samuel (GS) Report was finalized in October 2016, it is hard to believe that GS has not taken the adverse currency movements (mentioned in the Tenon last and latest announcements) into consideration when valuing Clearwood.

Directors seem to be advising caution when in fact, there is no need to do so.

Some skulduggery seems to be in the offing.

[biker]

Page 30 of Grant Samuel Report :

"movements in the New Zealand dollar impact Clearwood’s earnings. Clearwood’s largest markets are the US and Europe.
In the year ended 30 June 2016 the average exchange rates achieved were US$0.67 and €0.65. If the NZ$ strengthens against these currencies Clearwood’s earnings will decline.
Currently the New Zealand dollar has strengthened to around US$0.71, but has weakened slightly against the Euro to €0.64,
however, the earnings offset to these adverse movements inFY17 will be the annualised EBITDA benefit (US$4.3m) from the edger and ripline technolgy upgrades commissioned progressively during FY16 (only US$1.8m benefit included in FY16)."

Given that the Grant Samuel (GS) Report was finalized in October 2016, it is hard to believe that GS has not taken the adverse currency movements (mentioned in the Tenon last and latest announcements) into consideration when valuing Clearwood.

Directors seem to be advising caution when in fact, there is no need to do so.

Some skulduggery seems to be in the offing.

And page 25 says
4.3 Valuation of Clearwood
Grant Samuel has valued the equity in Clearwood in the range of US$63.3-$74.7 million as summarised below:
Clearwood’s FY16 earnings of US$11.5 million EBITDA, have been adjusted to reflect a full 12 months of benefits from the new edger and ripline machines, and current exchange rates of NZD:USD 71 cents and NZD:Euro 64 cents. The enterprise value attributed to Clearwood represents an overall judgement having regard to a number of valuation methodologies and parameters. Grant Samuel makes the following observations of the Clearwood business:
Clearwood – Valuation Summary (US$ millions)
Value Range
Low High
Enterprise Value of Clearwood 63.3 74.7

So, just what is this valuation based on? Surely .71 US and .64 Euro.
Currently we are at about .70 and .66, so with a new valuation, currency isn't really a significant issue- favorable if anything.

I agree with you Balance. Something not ringing true with the latest announcements and subsequent drop in share price.
What IS going on in your opinion?

[Xerof]

But wait, there's more:

Page 15: However,there is a natural hedge for Clearwood to the extent that there is a strong correlation between New Zealanddollar log prices and movements in the US dollar. Taking that into account, the 1c sensitivity reduces to lessthan US$0.1 million EBITDA impact. The NZ$:Euro sensitivity is approximately US$0.28 million EBITDA forevery 1 cent movement

[Balance]

But wait, there's more:

Page 15: However,there is a natural hedge for Clearwood to the extent that there is a strong correlation between New Zealanddollar log prices and movements in the US dollar. Taking that into account, the 1c sensitivity reduces to lessthan US$0.1 million EBITDA impact. The NZ$:Euro sensitivity is approximately US$0.28 million EBITDA forevery 1 cent movement

So putting your post and biker's together, EBITDA impact will be positive US$0.2m on USD and US$0.58m negative on Euro = overall adverse US$0.38m.

On US$11.5m EBITDA, this implies a 3.3% impact - hardly significant in the overall scheme of things!

The US$8m winding up costs certainly has a bigger impact - NZ$11.4m = 35c per share impact!

Well, directors and management better justify how a winding up cost can be so high.

[ari]

Still talking it down......https://www.anzsecurities.co.nz/DirectTrade/dynamic/announcement.aspx?id=4355421

[biker]

Tenon signs Sale & Purchase Agreement over Clearwood business
February 14, 2017 - Tenon today announced that it had entered into a sale and purchase agreement over its NZ-based Clearwood manufacturing and global sales operations (Clearwood). The purchaser is Tenon Clearwood LP, which comprises a group of US and NZ private investors, and Rubicon (circa 50%) (the Consortium).
The purchase price is US$55 million payable in cash and is conditional on, amongst other things, shareholders approving the sale at a Special Shareholders’ Meeting to be held on 20 March 2017 (refer attached appendix for key terms).
At the same meeting, Tenon will be proposing that (subject to the sale being approved by shareholders) a (second) pro-rata capital return of US$43 million be made to shareholders on closing. It is also proposed that Tenon will seek de-listing from the NZX Main Board and then for the Company to proceed to undertake a voluntary liquidation and return of all residual surplus funds (currently estimated to be a further US$5.8 million approximately) to shareholders. The capital return will be conducted by way of a court approved process, as was the case with the capital return following the sale of Tenon’s US business operations in December 2016.
The indicative timetable is for transaction closing and payment of the (second) capital return to Tenon shareholders to occur on 28 April, 2017, and for the subsequent liquidation of the Tenon Group to be commenced six months later (once the period for warranty claims under the sale and purchase agreement has expired).
Given Rubicon is a member of the Consortium, the Consortium Offer has been considered and negotiated by a sub-committee of the Tenon Board, comprising only the Tenon Independent Directors (Messrs Eglinton and Walker). The Rubicon Directors on the Tenon Board (Messrs Kasnet, Karaplis, and Moriarty) have had no involvement in the Company’s evaluation, consideration, or negotiation of the Consortium Offer and did not vote on any matter in relation to the Offer.
Deutsche-Craigs ran an exhaustive sales process for Tenon, generating expressions of interest from eight parties, domestic and international. Each was fully assessed and the Sub-Committee is comfortable that the Consortium Offer provides the best price, terms and certainty of completion that could have been negotiated with any of those parties.
CONTINUES

[biker]

In assessing these offers, the Sub-Committee took into account an estimated US$6 million (net of cash) in transaction, wind-up and liquidation costs1. Approximately half of these costs have been or will be incurred, regardless of whether this sale proceeds, as they relate to the final Blue Wolf transaction closing or to the ‘right-sizing’ of Tenon under a continuing business scenario, with a management structure appropriate for a smaller, Clearwood-only, Tenon business (a process already underway with the elimination of the Asia-Pacific President and Group CFO roles).
Grant Samuel has been appointed by the Sub-Committee as Independent Advisor to Tenon shareholders (other than Rubicon) on the transaction. Inclusive of costs1, they have valued Clearwood (under a sale and subsequent liquidation of Tenon), at US$45.8 – US$56.3 million, or NZ$1.99 - NZ$2.45 per share.
Assuming the above US$6 million estimated costs and no material Tenon bank debt to be repaid, the total cash to be returned to Tenon shareholders under the sale of Clearwood and the subsequent liquidation of the Tenon Group, will be approximately US$48.8 million, comprising US$43 million by way of (second) capital return, with an additional (estimated) US$5.8 million in a subsequent distribution once Tenon is liquidated.
Grant Samuel was also asked to value Tenon on a continuing basis, assuming no sale of Clearwood. Under that scenario, they assumed that Tenon would re-leverage the Company and make an immediate US$15 million pro-rata capital return to shareholders and determined that the value on a continuing business basis in a range of NZ$1.74 – NZ$2.08 per share. This valuation includes a 15% trading discount for the relative illiquidity of Tenon shares, on-going corporate costs to continue the public entity, as well as US$3 million of one-off costs to right-size the continuing Tenon business
On 23 December 2016, Tenon announced that it had entered into exclusive negotiations with one party with the intent of concluding a sale and purchase agreement over the Clearwood business. The volume weighted average share price for the 4-month period prior to that announcement was NZ$2.02 per share, and the share price on the day immediately prior to that announcement was NZ$2.12. Given the Consortium Offer, which equates to NZ$2.12 net of costs (NZ$2.39 per share before costs) is within Grant Samuel’s recommended sale and liquidation range and exceeds the top end of the value range for a continuing Tenon business and also given an extensive investment bank- led process has been run, Tenon’s Independent Directors have accepted the Consortium’s Offer and signed the sale and purchase agreement as being in the best interests of Tenon shareholders.
Tenon said that all documentation (which would include a Notice of Meeting with full explanatory notes and a detailed transaction and shareholder timeline, and a Grant Samuel Report) would be distributed to shareholders in early March.
CONTINUES

[biker]

1. Business being disposed of
Tenon’s NZ-based Clearwood manufacturing and related global distribution operations, comprising the net assets (including working capital) of Tenon Manufacturing Limited and the shares in Taupo Wood Solutions LLC, in a debt free transaction.
2. Consideration
US$55 million payable in cash. A future cash payment or receipt may occur if net working capital on closing diverges from US$11 million by more than a US$250,000 band, in which case the adjustment will be the amount outside the band.
3. Key conditions
The sale is subject to the satisfaction or waiver of certain conditions, including –
 The passing of Tenon shareholder resolutions approving the transaction
 Staff and contract transfers
 No material adverse change occurring in the Clearwood business prior to settlement
The conditions must be satisfied by 3 April 2017 (other than the material adverse change condition which runs to settlement).
If the conditions are satisfied, settlement is set down for 28 April 2017.
4. Potential termination events
In addition to the conditions, the Consortium can also terminate the transaction if –
 The Tenon Board withdraws its recommendation
 Tenon breaches its obligations in relation to non-solicitation of alternative transactions  There is extensive damage to the Taupo plant after signing.
Tenon can also terminate the transaction if it is entering into an unsolicited alternative transaction as a result of the Tenon Board determining that it is required to do so in order to comply with its fiduciary duties.
Tenon must pay a termination fee of US$1.65 million if –
 It terminates the Sale and Purchase Agreement in order to enter into an alternative
transaction, or
 The Consortium terminates the Sale and Purchase Agreement because the Tenon Board
has withdrawn its recommendation of the sale
Tenon must reimburse the Consortium’s costs and expenses in the amount of US$500,000 if Tenon shareholders vote against the sale.
5. Representations and warranties
The Sale and Purchase Agreement contains a typical set of representations and warranties concerning Clearwood. Any and all claims must be brought within six months of closing. Other than for breaches of fundamental representations (e.g. title to assets), all claims under the Sale and Purchase Agreement are capped at an aggregate US$1 million.
ENDS.

[winner69]

I thought punters were talking $100m?

[drcjp]

Scamtastic.........

[Snow Leopard]

So do I understand correctly that those Tenon shares are going to yield about NZ$2.10 each total up to and including liquidation ?

Best Wishes
Paper Tiger

[Felix]

Assuming the party offers within the range identified in the valuation report, here are my calculations for what it means for capital return -

Valuation report suggested a valuation of US$63.3-$74.7m for the NZ operations. Tenon's 23 December announcement talks about adverse currency movements impacting valuation so let's conservatively take 10% off the valuation, bringing it down to US$57.0-$67.2m.

Tenon talks about US$8m wind up costs. Subtracting this from the revised valuation brings us to US$49.0m-$59.2m. The current USD exchange rate is US69c but again let's be conservative and convert to NZD at 71c. This gives us NZ$69.0m-$83.4m. There are now 32.4m Tenon shares on issue so dividing the NZD amount by total shares gives us a potential capital return of $2.12-$2.57 per share to Tenon shareholders.

We know Tenon's offer for the US operations was at the bottom of the valuation range and the buyer of the NZ operations has the advantage of knowing the valuation range, so I suspect the buyer will also offer at the bottom of the range. This suggests that the current share price of $2.30 is probably fully valued.

Wow so the $2.12 net of costs comes in at the bottom end of my estimated range. It's a pretty rubbish outcome for long standing shareholders who stuck with the company over many hard years and were finally starting to see some reward through growing profits and dividends.

[Xerof]

Have a read of the announcement posted after Friday close.

https://www.nzx.com/companies/TEN/announcements/295257

They re-iterate the theoretical ex-price, after all the changes made, of $2.05 vs $2.50 current market price.

Seems to me they are concerned buyers are getting ahead of themselves.

They are perhaps implying the Clearwood negotiation is for less than expectations, but they are explicit about the costs to wind-up, and as yet unrealised currency losses

But feel free to come to your own conclusions

Well you can't say they didn't warn shareholders. They announced twice.

Even worse, it's deckchairs on the Titanic really - seems to me everyone was looking for a clean break, not ending up with it still in the Rubicon 'portfolio'

Another few years for the board and management to ponder the future

[theace]

So how much do we get back per share, now the sale has gone through?

[ari]

So how much do we get back per share, now the sale has gone through?
https://www.nzx.com/files/attachments/257217.pdf

[theace]

Sale - If I had 200 shares initially then, NZ$3.8036 per share .... I'll get $3803.60 with 1000 shares remaining due to cancellation.

Capital Return - NZ$0.336 per share post- cancellation .... I'll get $336.

Surplus Cash - (Potenitally) NZ$0.44 per share ... I'll get $440.

So a total of $4579.60 .... have I got this right?

[t.rexjr]

Sale - If I had 200 shares initially then, NZ$3.8036 per share .... I'll get $3803.60 with 1000 shares remaining due to cancellation.

Capital Return - NZ$0.336 per share post- cancellation .... I'll get $336.

Surplus Cash - (Potenitally) NZ$0.44 per share ... I'll get $440.

So a total of $4579.60 .... have I got this right?

Nope, all you'e got left is the potential 0.44cps after the $3803.60 capital return (equates to roughly $2.12 p/s prior to sale)

[Puriri Pete]

With the six month countdown to the liquidation of Tenon now underway I'm wondering whether there is any value in an NZX-listed shell company these days? Will it be euthanasia or reincarnation for TEN?