Aevum (AVE)

[tommy]

AVE has been mentioned previously by our talented posters on AA's Ageing Baby Boomers thread
http://www.sharetrader.co.nz/topic.asp?TOPIC_ID=22642

but thought it deserved some dedicated attention here in the form of a new thread.

"Aevum Limited is engaged in the operation, management and development of retirement villages and aged care facilities. The Company operates in two segments: aged care and retirement. The aged care segment represents Commonwealth subsidized and accredited aged care facilities comprising low-care hostel accommodation and nursing homes. The retirement segment represents resident funded retirement living accommodation comprising independent living units and serviced apartments. Aevum Limited operates four communities around Sydney: on the north shore, northwest, inner west and southwest. The Company has 719 units/beds under management, and caters for around 820 residents. On August 28, 2006, Aevum Limited completed the acquisition of seven retirement villages and associated unsold units and land held for development from Sakkara Living. On August 25, 2006 the Company acquired three retirement villages in Western Australia from Moran Health Care Group."

Okay, that's the company profile. We all know that the aging population will only increase the size of the cake (market) in the coming years. So, what's so special about AVE?

Current PE is 16. There is a lot of room for consolidation in this sector, and I believe this is the sort of company private equities love.

DECEMBER 2006 RESULTS:
EBIT growth of 161% to $9.4m (Dec05: $3.6m)
NPAT growth of 146% to $7.8m (Dec05: $3.2m)
EPS growth of 126% to 8.8�‘ (Dec05: 3.9�‘)
Decrease in operating cash flows of 75% to $1.3m (Dec05: $5.2m)
Interim dividend declared of 4.0�‘. (Dec05: 3.5�‘)
NTA per share up 7.0�‘ to $1.58 (Dec05: $1.51)
Revaluation increments of $8.7m (Dec05: $2.4m)

Chart:
http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aave&draw.x=0&draw.y=0

Negatives:
Debt/Equity ratio (what da! +100%?), cash flow status


Recent news:
http://www.smh.com.au/news/business/aevum-picks-up-196-aged-units-for-17m/2007/05/28/1180205161256.html

Aevum picks up 196 aged units for $17m


Jacob Saulwick
May 29, 2007

WITH the impending retirement of cashed-up baby boomers luring investment banks and major property groups into the aged care and retirement sectors, the industry is poised for a wave of consolidation.

But Aevum Ltd yesterday proved there are still opportunities for smaller players to grow in the industry, snapping up a retirement village from the Salvation Army for $16.8 million and talking of further investments on the NSW coast and interstate.

While Aevum is NSW's largest for-profit provider of retirement accommodation, the sector's dominant private player is FKP, which, with joint venture partner Macquarie Bank, boasts a portfolio of more than 10,000 units.

But Aevum's chief executive officer, Simon Owen, said yesterday the bigger groups tended to focus on larger facilities and left gaps in the market to buy smaller retirement villages. Among these was Aevum's latest purchase, The Willows, in Sydney's Northmead.

"The industry is still very fragmented," Mr Owen said. "There's a lot of smaller operators still."

Aevum, which now owns 17 retirement facilities in NSW and WA, was looking at off-market purchases of single villages largely in coastal areas, Mr Owen said.

"We are going to continue to grow our portfolio along the south coast, the north coast, and in Sydney. We will also be looking further up, perhaps looking at Coffs Harbour, Ballina and the Tweed," he said. "We are also looking at further expansion into Queensland and further growth in the WA market."

Aevum, with market capitalisation of more than $335 million, now runs 1785 serviced apartments and 202 aged care beds and has development approval for the expansion and redevelopment of 169 serviced apartments.

Last month the company raised $40 million in an institutional share placement to fu

[Awamoa]

Fisher Funds are obviously very keen on this stock.
They announced yesterday that their holding is now just on 8 million shares.
I see from their statement that they have been buying these shares on market daily up until 1/06/07.
I see the price closed at $3.29 today.

[Serpie]

Put this one on my watchlist yesterday Tommy.
Don't kow much about the management and structure as yet, but love the sector.
Would appreciate any feedback from those in-the-know about this one.

[tommy]

quote:Originally posted by Serpie

Put this one on my watchlist yesterday Tommy.
Don't kow much about the management and structure as yet, but love the sector.
Would appreciate any feedback from those in-the-know about this one.


Hi Serpie,

Board:
http://www.aevum.com.au/board.htm

Management:
http://www.aevum.com.au/management.htm

Business:
http://www.aevum.com.au/corp_profile.htm

Hope this helps:)

[Serpie]

Nice one Tommy.
Good bedtime reading. Thanks for your help.

[tommy]

Let me also add the following listed companies involved in aged care which may be of interest to those interested in da industry:

FKP
PLF
LLC
BEC
VLL

But please DYOR before making crazy investment decisions like me[8D]

If you are not familiar with the industry, I suggest you read this interesting report:

http://www.grantthornton.com.au/UserFiles/File/Publications/tools%20and%20resources/Industry%20Intelligence%20Unit/IIU%20-%20Retirement%20village%20&%20aged%20care%20mar07.pdf

[Serpie]

Brilliant Z Man.
Will have a listen on the weekend.
Thank you.

[Yossarian]

going very nicely at 3.55

[Footsie]

I mentioned this stock ages ago as being the cheap alternative to RYM.

I'm on board, it has great potential and long term..... minimal downside risk

[Awamoa]

AVE have announced this morning that they have purchased Maybrook Retirement Village in Sydney for $11.6m.
This gives them another 98 units and must take them very close to their target of 2000 units.
The market likes it up another 15 cents to $3.70.
This company is moving fast in asset growth and share price.

[tommy]

AVE on a steady uptrend,

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aave&draw.x=53&draw.y=18

Might continue to rise until full year results are announced? Fingers crossed:)

[Yossarian]

another new high at 3.76... up about 27 % in 6 weeks... all good

[Flying Goat]

Oh BUGGER! I sold this in Feb during the big one day sell down...:(

[tommy]

AVE up another 5%

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aave&draw.x=0&draw.y=0

$4 here we come!

[tommy]

Another acquisition:

ASX & MEDIA RELEASE 25 JULY 2007
AEVUM ACQUIRES VILLAGE COMPLEX IN PERTH


Retirement living company, Aevum Limited (ASX Code: AVE) has exchanged contracts to acquire two adjoining retirement villages in Perth from the Multiple Sclerosis Society (�gMS Society�h) for $5.75 million.

The River Parks and River Pines Retirement Villages (�gRiver Villages�h) are located in the suburb of Wilson, approximately 9kms from Perth CBD and are adjacent to the Canning River and open parkland.
The River Villages are mature facilities consisting of 67 Independent Living Units. Developed in several stages over the past 14 years, the villages offer a mixture of two-bedroom villas and units at various price points as well as large communal facilities and under cover car parking.

The typical contract structure entitles the operator to a deferred management fee calculated on the entry price of the Independent Living Unit plus a share of the capital gain upon departure.

The acquisition, Aevum�fs fourth since the beginning of May 2007, will be funded through existing cash reserves and a committed debt facility with Westpac and is immediately earnings accretive.

The purchase of the River Villages continues Aevum�fs strategy of focussing on bolt-on acquisitions which deliver strong recurring earnings.

Following the recent acquisitions of Camden View Village, in Laurieton, NSW and The Willows and Maybrook Manor, both in suburban Sydney, Aevum now owns and operates 19 villages comprising 1,943 ILU�fs and Serviced Apartments and 202 Aged Care beds. Aevum also has an identified development pipeline of over 400 ILU�fs across its existing portfolio including approved DA�fs for 169 ILU�fs.

Aevum chief executive officer, Mr Simon Owen, said the acquisition of the �gRiver Villages�h represents a well priced opportunity for Aevum to further strengthen its position in the Western Australian market and obtain a quality facility within the Perth Metropolitan area.

�gAevum already owns three villages in Western Australia, and this acquisition will ensure additional operational efficiencies and an increased presence in the region�h, Mr Owen said.

The chief executive officer of the MS Society of Western Australia, Marcus Stafford said the decision to sell the River villages was not an easy one and involved many considerations other than just price.

�gIt was important for the MS Society that the prospective purchaser had a proven track record in the operation of retirement villages and a commitment to looking after the welfare of our residents,�h Mr Stafford
said.

�gOur due diligence enquiries of Aevum and our meetings with their management gave us the confidence that we were dealing with a reputable company committed to the care and amenity of residents�h.

Aevum anticipates that the transaction will settle in mid August.

Aevum�fs portfolio of 19 villages
Metropolitan Sydney
- Cardinal Freeman Village, Ashfield, Sydney: 169 units, 49 apartments, 119 aged care beds with development approval for another 36 units
- Lourdes Village, Killara, Sydney: 108 units, 54 apartments and 83 aged care beds
- Castleridge Resort, Castle Hill, Sydney: 113 units
- Bexley Gardens Village, Bexley, Sydney: 22 units
- The Willows Retirement Village, Winston Hills, 141 units, 48 apartments with the opportunity to develop a further 80 units.
- Maybrook Manor Retirement Village, Cromer, 98 units with the opportunity to develop a further 19 units.
Central Coast, NSW
- The Village - Swansea, Swansea: 133 units
Mid North Coast, NSW
- Lincoln Gardens, Port Macquarie: 54 units
- Bellevue Gardens, Port Macquarie: 131 units and 44 apartments
- Parklands Village, Port Macquarie: 113 units and 31 apartments
- Queens Lake Village, Laurieton: 124 units
- Golden Ponds, Forster: 150 units with development approval for additional 42 units
- Camden View Village, Laurieton: 54 units
Southern Highlands, NSW
- Macquarie Grove Village, Tahmoor: 42 units
- Waratah Highlands Village, Bargo: 77 units with development

[tommy]

AVE increases NPAT 72%!!

Not bad eh

[Awamoa]

I am just looking through my purchase records for this stock.
I bought my first parcel on 26/7/06 at $1.70 and several more parcels up to $2.90 later on.
The closing price today $1.70.Its been a great ride up to $3.98 but not keen on the return journey.
Its been a very good lesson in not having a trailing stop/loss.
I wonder how Barrimundi feel about their holding.A lot of their purchases were around the $3.00 mark.
At the end of the day I still believe this is a very good share and hopefully the sun will shine sometime soon.

[macduffy]

Yes, they're getting hit, perhaps a bit unfairly, for being a " property " company.
Ryman are in the same boat, or is that the same " village "?

;)

[geezy]

Another good company being unfairly hit, look to pick up the pieces when the market settles or accumulate more :)

[Rif-Raf]

Agree, perception of property exposure is an issue, however putting into perspective the baby boomers retiring soon will underpin this sector as one that will be a license to print money for many years to come.

[Footsie]

wasnt there a t/o offer at this price 3 yrs ago?

[Footsie]

Just worked it out

MFS/BNB have a 17% stake.... there is obviously a fear that MFS will try and dump this stock like they did HFA.


The lower it goes the higher the chance of a full t/o IMHO


ITs now on my watchlist to buy

[geezy]

if they are gonna dump it, i m sure there will be takers for this solid company, never too late to top up good stuff they say .


I m in

[macduffy]

Almost two and a half years since the last post on this thread!

Stockland has announced a takeover bid at $1.50.

AVE directors say "Hold" at this stage.

[buns]

Hmm wonder what the long term buyers think of this. I've been considering entering AVE for some time, and would have been hoping for a bit more than $1.50

Ohwell, still a decent premium. Good news for those in Fisher funds kiwisaver, I think this is one of there larger holdings?

[macduffy]

Hmm wonder what the long term buyers think of this. I've been considering entering AVE for some time, and would have been hoping for a bit more than $1.50

Ohwell, still a decent premium. Good news for those in Fisher funds kiwisaver, I think this is one of there larger holdings?

It may well be, but I suspect Fishers have an average cost in excess of $1.50. They were adding to their stake about three years ago when the SP was around $3.00.

[COLIN]

Good news for those in Fisher funds kiwisaver, I think this is one of there larger holdings?

Don't know about their Kiwisaver but at 31/7/10 BRM was invested 7% in AVE, their third largest holding. Doubt if Carmel will be accepting $1-50. Market obviously thinks a higher offer will have to come.

[percy]

Don't know about their Kiwisaver but at 31/7/10 BRM was invested 7% in AVE, their third largest holding. Doubt if Carmel will be accepting $1-50. Market obviously thinks a higher offer will have to come.

With NTA $2.06 and villages in good locations I will not be selling.Huge growth sector.I think Fisher's have 10.4% shareholding.

[geezy]

i remember they reduced their shareholding for a profit not too long ago as they acquired sub 70-90s? It wasnt too long ago when the share price was 1.60? I m sad that the take over is well below NTA as well.

disc. hold

[POSSUM THE CAT]

Geezy Just a nasty suspicion is their any nasty court cases in the wind did you see the program on 7news chanel (freeview) the other night I do not KNOW if it was a repeat or not or wich companies were involved (care or lack of it for the elderly was the subject) http://tvnz.co.nz/world-news/mice-chew-residents-in-aust-nursing-home-2693235 not the one I was watching but will give you some idea

[Sauce]

POSSUM you seem to have it in for the retirement village sector!

Like any industry there will be fly by nighters - if operators are sloppy and do not provide the necessary and relevant care they will be demolished by their competition in the long run. And if sloppy operators are getting away with being sloppy, its another sign of the high demand and very real need for quality providers within the sector.

[POSSUM THE CAT]

Sauce I am not looking at the money sector I am talking to people in them that wish they could get out & doctors that say that CARE should be taken out of the sector name. I have family member in care and I have seen the conditions he lives in. As I have said before he would have better care in prison. Living in a 6x 8 foot room with facilities down the corridor. Also The food if it was served to you anywhere you would throw it at them.

[percy]

Sauce I am not looking at the money sector I am talking to people in them that wish they could get out & doctors that say that CARE should be taken out of the sector name. I have family member in care and I have seen the conditions he lives in. As I have said before he would have better care in prison. Living in a 6x 8 foot room with facilities down the corridor. Also The food if it was served to you anywhere you would throw it at them.

The people I talk to tell me they love living in a RYM home.The experience I had with my mother in a retirement homein Buderim was she felt very safe and secure there.I cannot coment one the AVE homes,as I brought them on locations that I would like to retire to,particulary those on NSW coast.A good friend of ours is office manager for an opposition home to RYM here in ChCH.She speaks very highly of RYM.The takeover offer for AVE,which has been rejected by AVE board just in my opinon goes to show what a great growth industry the retirement one is.
Your repeated comments on prisons is uninformed.Anyone who has either spent time in prison or done prison visits would take you for a fool.

[Sauce]

Sauce I am not looking at the money sector I am talking to people in them that wish they could get out & doctors that say that CARE should be taken out of the sector name. I have family member in care and I have seen the conditions he lives in. As I have said before he would have better care in prison. Living in a 6x 8 foot room with facilities down the corridor. Also The food if it was served to you anywhere you would throw it at them.

It's interesting how different that is than the experiences of the people I know in the Wellington villages. I have dealt with six families with people in villages in Wellington and all of them are very fond of the place, both from a care and accommodation perspective. I did hear of one incident but it was a rogue employee and it was dealt with promptly and efficiently.

I don't know anything about AVE but I am very sure that RYM have excellent systems and procedures which make their villages good places to reside. In fact you are the fist person I have ever heard speak badly of them.

Thats not to say there are not bad things going on in the industry, or even within RYM at a localised level (i.e. bad employee or employees, its run by humans after all unfortunately they're not all perfect). But they simply wouldn't enjoy the reputation and demand they have if every, or even many, residents experience was a negative one.

[Sauce]

The people I talk to tell me they love living in a RYM home.The experience I had with my mother in a retirement homein Buderim was she felt very safe and secure there.I cannot coment one the AVE homes,as I brought them on locations that I would like to retire to,particulary those on NSW coast.A good friend of ours is office manager for an opposition home to RYM here in ChCH.She speaks very highly of RYM.The takeover offer for AVE,which has been rejected by AVE board just in my opinon goes to show what a great growth industry the retirement one is.
Your repeated comments on prisons is uninformed.Anyone who has either spent time in prison or done prison visits would take you for a fool.

Percy you beat me to it!

[POSSUM THE CAT]

Percy I have been talking many times over a period of some years to a fraudster who spent several years in a low security NZ prison and said it was like living in a motel unit only you could not leave the property & did not have many visitors had a tv & computer with internet in his so called cell. Far better conditions than my brother lives in.

[macduffy]

Getting back to the takeover bid for AVE, it's not surprising that directors have spurned Stockland's offer as being opportunistic and undervalued. Standard procedure, but the market seems to agree.

Still a long way to go but will be interesting to see if anyone else is going to join the fray or if Stockland will up their bid.

[macduffy]

As expected, Fisher Funds would like some more, please.

From FN Arena.

AAP

One of Aevum Ltd's biggest shareholders says Stockland will need to offer more than $266 million for the retirement village owner, given the high quality of some of the properties.

Fisher Funds Management Ltd director Frank Jasper says that an offer around the net tangible asset (NTA) backing of $2.07 per share, equivalent to a total of $367 million, would better reflect the value of the business.

"Something around NTA is something we'd consider very seriously," Mr Fisher told AAP on Wednesday.

Fisher Funds holds about 7.7 per cent of Aevum and has held the stock for about four years.

Diversified property group Stockland on Monday announced that it had approached Aevum with an offer of $1.50 per share, which the target formally rejected on Tuesday.

Aevum said the offer did not reflect the strategic value of Aevum's businesses, given it was one of the largest pure retirement living companies with a significant presence in NSW.

Mr Jasper, who helps the New Zealand based Fisher Funds manage $NZ780 million ($A626.98 million), said Aevum's properties, particularly in Sydney, were very hard to replicate.

"Those villages in Sydney are the jewels in the crown which you can't replicate," he said.

"The property prices are now just so expensive."

That meant that there would be ongoing asset price growth and high occupancy levels, both of which were good for investors, Mr Jasper said.

Aevum has six retirement villages in Sydney including properties in the suburbs of Ashfield, Killara, Cromer and Castle Hill.

Stockland, which first approached Aevum on Friday, said this week that it wasn't intending to alter its offer price, although the company did remain open to reviewing the terms of the offer.

Mr Jasper said there was an ongoing and constructive dialogue between the boards.

"The critical thing is that everyone is making a constructive approach," he said.

He declined to comment on whether Stockland had approached Fisher Funds to discuss the offer.

Stockland said the Aevum acquisition would almost double its retirement living business.

Its number of retirement villages would rise to 53 from 24, moving it from the market's fourth largest player to number three.

"Our basic view is that we're very supportive of the logic of the bid," Mr Jasper said.

"Being a fund manager, everything is for sale at the right price."

Fisher Funds' Australian Growth Fund is focused on well run Australian small cap stocks.

[percy]

As expected, Fisher Funds would like some more, please.

From FN Arena.

AAP

One of Aevum Ltd's biggest shareholders says Stockland will need to offer more than $266 million for the retirement village owner, given the high quality of some of the properties.

Fisher Funds Management Ltd director Frank Jasper says that an offer around the net tangible asset (NTA) backing of $2.07 per share, equivalent to a total of $367 million, would better reflect the value of the business.

"Something around NTA is something we'd consider very seriously," Mr Fisher told AAP on Wednesday.

Fisher Funds holds about 7.7 per cent of Aevum and has held the stock for about four years.

Diversified property group Stockland on Monday announced that it had approached Aevum with an offer of $1.50 per share, which the target formally rejected on Tuesday.

Aevum said the offer did not reflect the strategic value of Aevum's businesses, given it was one of the largest pure retirement living companies with a significant presence in NSW.

Mr Jasper, who helps the New Zealand based Fisher Funds manage $NZ780 million ($A626.98 million), said Aevum's properties, particularly in Sydney, were very hard to replicate.

"Those villages in Sydney are the jewels in the crown which you can't replicate," he said.

"The property prices are now just so expensive."

That meant that there would be ongoing asset price growth and high occupancy levels, both of which were good for investors, Mr Jasper said.

Aevum has six retirement villages in Sydney including properties in the suburbs of Ashfield, Killara, Cromer and Castle Hill.

Stockland, which first approached Aevum on Friday, said this week that it wasn't intending to alter its offer price, although the company did remain open to reviewing the terms of the offer.

Mr Jasper said there was an ongoing and constructive dialogue between the boards.

"The critical thing is that everyone is making a constructive approach," he said.

He declined to comment on whether Stockland had approached Fisher Funds to discuss the offer.

Stockland said the Aevum acquisition would almost double its retirement living business.

Its number of retirement villages would rise to 53 from 24, moving it from the market's fourth largest player to number three.

"Our basic view is that we're very supportive of the logic of the bid," Mr Jasper said.

"Being a fund manager, everything is for sale at the right price."

Fisher Funds' Australian Growth Fund is focused on well run Australian small cap stocks.

I missed the jewels in the crown Sydney properties.I really liked the NSW coast retirement homes.Really nice places to retire to.I suppose if I get taken out I will add to my RYM. Should not admit it but my AVE were in my "wet and forget" portfolio.I will follow Fishers as I think Frank Jasper is very astute.

[macduffy]

Stephen Bartholomeusz makes the point that Stockland will probably settle for anything north of 50.1% so probably don't need the backing of the AVE board.

Or Fishers' shareholding either?

"Meanwhile, the market seems to be expecting either an alternative offer or an increased one from Stockland.

Stockland’s stake in Aevum was watered down by Aevum’s own merger with the unlisted IOR Group earlier this year, to just over 10 per cent, but it has been able to rebuild the holding to 15.9 per cent through recent on-market purchases at the offer price of $1.50 a share.

That signals that there are at least some shareholders willing to sell at that price, which represents a premium of about 33 per cent over Aevum’s three-month volume-weighted average price. Aevum shares were trading around the offer price at the start of the year but have fallen sharply since the merger with IOR.

With a minimum acceptance condition of only 50.1 per cent and an old-fashioned all-cash bid rather than the ubiquitous schemes of arrangement, Stockland doesn’t necessarily need the co-operation of the Aevum board to win control.

If it were successful, the offer would nearly double the size of Stockland’s retirement living business and, by bringing together its own strong position in Victoria with Aevum’s stronghold in NSW, create a sizeable national platform for expansion. Aevum’s portfolio of villages is more mature than Stockland’s, so apart from the synergies there would be a stronger cash flow profile to the combined portfolio.

Quinn has made it clear that Stockland’s focus is on retirement living, residential communities and retail centres, so the offer fits neatly with the wider strategy.

In the context of Stockland the cost of acquiring Aevum isn’t particularly material and would push gearing up from a modest 18 per cent to only 20 per cent, but if Quinn were to subsequently move on FKP he would have the potential to create a very meaningful division.

He has noted previously that the sector is highly fragmented and that there would inevitably be consolidation. Stockland clearly wants to be one of the consolidators. FKP’s Peter Brown, conscious of Stockland’s balance sheet strength, will be watching the outcome of the bid for Aevum with heightened interest. "

[macduffy]

Stockland's offer price "may not be final".

http://news.smh.com.au/breaking-news-business/stocklands-aevum-offer-may-not-be-final-20100805-11hkk.html

[geezy]

this could turn hostile judging from the bid price

[percy]

Article in today's Sunday Star times headed Aevum takeover bid too low for Fisher Funds .Merrill Lynch pointed out that other recent acquisitions in the sector had been done at discounts to NTA of at least 20%.The market is punting that AVE is worth a little bit more than the offer,but not NTA.
Percy who is not the brightest cookie in the jar cannot see the point of selling his AVE at 20% discount to NTA to buy more RYM at over twice NTA.
The article was not as informative as macduffy's posts.

[POSSUM THE CAT]

Percy maybe the Australians are not as mad as NZ buyers of RYM

[percy]

Percy maybe the Australians are not as mad as NZ buyers of RYM

Am thinking us Kiwis maybe more astute than our Aussie cousins.

[percy]

Strong result out today.Profit after tax $28.6mil.Revenue up25%.Final divie increased from 2cents to 3 cents.SP up.

[Awamoa]

I note that the Directors have reluctantly recommended that shareholders accept Stocklands offer of $1.80 per share stating it wasnt a fair offer but a reasonable one.
This begs the question who are these directors working for?
The independant valuers put an estimate of $1.91 to $2.22 per share.
As a long term holder I will be gutted if this offer is accepted having bought in at a higher price than is currently being offered.
Hopefully enough of the major holders can stop this going ahead.
What are other holders thoughts?

[percy]

I sold mine at $1.80 as the offer can not be increased,and I was concerned the SP would drop after acceptance date.I am looking to add to my RYM holding,but happy to sit on cash at present.

[lissica]

I sold mine at $1.80 as the offer can not be increased,and I was concerned the SP would drop after acceptance date.I am looking to add to my RYM holding,but happy to sit on cash at present.

I was thinking the same thing, but wondering if it really will drop below $1.80. Is there anything stopping Stockland buying on market if it goes below $1.80?

If you're a NZ holder, pays to sell today before going ex divvy as you won't be able to use any franking credits

[geezy]

we still got about 10 days before the offer closes, however there will be another independent report due soon but judging from the way the moved the div , i guess ave is ready to let go.

[JayPe]

I am looking to add to my RYM holding,but happy to sit on cash at present.

Have you looked at any other aged sector services companies instead? I was having a look at Invocare (IVC, funeral services in Australia) which has a PE of around 20. A bit different to RYM, I grant you.

[percy]

Have you looked at any other aged sector services companies instead? I was having a look at Invocare (IVC, funeral services in Australia) which has a PE of around 20. A bit different to RYM, I grant you.

No not really.I suppose I should,but it's business seems a bit final to me.!!!!

[geezy]

what happens if i hold out past sept 30?

[jmsnz]

what happens if i hold out past sept 30?

By my understanding, a number of things could happen, depending on how many shares Stockland get.

I think the most likely outcome will be that they will get a significant holding and exert effective, if not total, control over Aevum, they currently have 17%. Post bid it would seem the price is likely to fall and the remaining holders will be left with a very thinly traded stock. If you believe in Aevum long term then you would stay, but given where it was trading pre-bid then in the shorter term you can't see it holding 1.80.

I think I will accept and watch or just back Ryman!!!

Cheers

John

[geezy]

they have officially reached 50% of the stock and is most likely to achieve total control, will AVE be delisted if the % increases? i think i should get out now.

[macduffy]

I think jmsnz has it right.

Stockland will end up with control but not enough (90%) to allow compulsory acquisition. So AVE will remain listed but as a less actively traded stock than previously. What happens thereafter is anyone's guess but of course Stockland can't make another bid for 12 months.

I sold my small holding recently. Better prospects on the ASX at present, IMO.

[percy]

from yesterday's afr street talk.
The thinking is that the NZ Fisher Funds,which holds 8.74%,is unwilling to be left as a minority shareholder.With more than 50%,Stockland gains effective control and has the power,for example,to reduce dividends and change the profile of the business.
I see from shareholder notice Fisher Funds have sold.

[percy]

I note from an article in www.theaustralian.com.au/business Stocklands now have 60.52% of AVE and offer extended to13/10/10.

[geezy]

AVE directors agreeing to sell out today. Just wanted to know if anyone received their dividends?

I was a DRP participant but they have since cancelled it , so did anyone get anything in their mail? or whats the story?

thanks in advance

[Awamoa]

The dividend payment date is 21/10/2010.I havent received mine yet but it shouldnt be far away.

[geezy]

awamoa, have u received your divy payment yet? i still havent seen mine in the mail ..

[Awamoa]

Yes.Received cheque 1/11/10.