Opus

[James108]

The offer is not a done deal yet, read the conditions.

[Scrunch]

if the offer price is at $1.78 then why the SP is stagnant at $1.60?
It crept up another 10c to close at $1.70

[Scrunch]

Also while the offer price is $1.78 OIC can declare a div of up to 7c without changing the offer price. This would have to be a near certainty so the effective price is $1.85

[bullfrog]

Undervalued stock, a growing company at least in NZ judging by the amount of recruitment they're doing. Been topping up with longer term in mind, but this is certainly an early Christmas present, steak for tea!

[peat]

Even the SPCA hang on to dogs for longer than they should - in the hope a nice generous person tuns up and gives it s loving home

harsh ! :p

[Under Surveillance]

Also while the offer price is $1.78 OIC can declare a div of up to 7c without changing the offer price. This would have to be a near certainty so the effective price is $1.85
Depending on the tax positions of recipients, and whether or not the full 7c is paid and imputation credited, the effective price will be somewhat lower than 185. No brokerage to be paid, however.
I doubt there will be many holders who will hesitate before accepting. The Malaysians seem to have done a good job in getting the offer price where it is (minor compensation for Kiwi owners for the hapless overseas acquisitions and the forlorn middle Eastern squandering the Malaysians promoted).
I feel a little sorry for recent sellers, and for the bidders who sat at 99 on Friday when they could have made a killing by spending an extra cent to meet offers at 100. This seems a rare case where full secrecy has been observed by insiders.

[Scrunch]

Depending on the tax positions of recipients, and whether or not the full 7c is paid and imputation credited, the effective price will be somewhat lower than 185. No brokerage to be paid, however.

Good point - They have a heap of imputation credits ($34.684m in the 2016 Annual report) so I'd expect any dividend declared to be fully imputed. For NZ shareholders on a 33% marginal tax rate RWT takes 7% of the stated cash value of any dividend. If they do declare a 7c fully imputed dividend it would be worth 6.5c after tax for $1.845 not $1.85 of net value.

[Under Surveillance]

Good point - They have a heap of imputation credits ($34.684m in the 2016 Annual report) so I'd expect any dividend declared to be fully imputed. For NZ shareholders on a 33% marginal tax rate RWT takes 7% of the stated cash value of any dividend. If they do declare a 7c fully imputed dividend it would be worth 6.5c after tax for $1.845 not $1.85 of net value.

33%-28% = 5%RWT. So 6.65, and 184.65

[Scrunch]

33%-28% = 5%RWT. So 6.65, and 184.65

My understanding was that imputation credits are attached at a rate of 0.388889 [0.28/(1-0.28)]. RWT is on the gross dividend not net div @ 5% being the difference between 28% and 33%. Assuming a 10,000 shareholding and 7c dividend it would be:
Gross dividend $972.22, Imputation CR $272.22 [$700 * 0.388889], RWT $48.61 [$972.22 * 5%]. Net div = $651.39 or with rounding 6.5c. $1.84514

[tobo]

If the T/O proceeds, what is the likelyhood the 7c divi (discussed above) would proceed?
Is there any reason or circumstance why it might not?

[percy]

Game on.
We are well positioned.

[Scrunch]

Game on.
We are well positioned.

And there is now a bonus 7c dividend. 14c fully imputed with a 28 Sep record date and 6 Oct payment date. Takeover price remains $1.78 plus this div.

[percy]

And there is now a bonus 7c dividend. 14c fully imputed with a 28 Sep record date and 6 Oct payment date. Takeover price remains $1.78 plus this div.

Whoopee do.
Total $1,92....

[bullfrog]

Happy days, now where shall I put all that hard earned loot, decisions, decisions :)

[tobo]

How does one accept this offer?
I have received an Acceptance Form that accepts the offer dated 30 August. No mention of the revised offer.
Would we expect a replacement form?

[percy]

How does one accept this offer?
I have received an Acceptance Form that accepts the offer dated 30 August. No mention of the revised offer.
Would we expect a replacement form?
I doubt it.
The offer price remains the same,we are just receiving an extra,or double divie.

[percy]

I held on to receive the fully imputed divies.
Seems everyone did the same.
Had in mind to sell today on market, had TIL come out with a positive upgrade.
That did not happen, so it looks as though it will be worth hanging onto OIC ,and accepting the $1.78 offer price.Means I will not have to pay brokerage either.
Will not do anything until mid November the offer closes on 27th November.

[tobo]

Well, it's done, and staff already have new logo on their emails!

[Scrunch]

There's been a particularly strange trade in them today. Someone buying 7000 shares at 180 then 181. They are in the process of compulsory acquisition at 178. Guaranteed loss. Any ideas why someone would toss away money?

[stoploss]

Potentially someone has left an offer in there , but accepted the T/O offer.
Therefore could be left short , might have to pay a premium to get em back...