Sorry to see you loose any money [maybe],but I wonder just how much GK has lost.His average price of PGC shares must be pretty high.A guess at 70cents considering he paid a huge amount for his original holding .
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Georgie boy bought around 8m PGC shares at around $4.50 per share.
Then, he participated and underwrote the 6:1 rights issue at 40 cents - so another 48m shares at least.
He then tried to privatize at 37 cents and bought even more shares.
Now he owns around 82.6m shares.
With the shares trading at 25 cents and NTA dropping like a lead balloon, Georgie Boy must be looking at about $50m loss, less the $8m he extracted out of PGC for Epic.
Then, there's his distressed property holdings around the place - especially the Queenstown district - Jacks Point etc.
Only those who never lived in Queenstown or talk to anyone there will live and buy into Jacks Point. The sections get the full brunt of the Southerlies during winter and is inhabitable.
I can hear the fat lady warming up to sing.
Poor misunderstood Georgie.
8m @ $4.5 = $$34m, 48m @ $0.4 = $19.2m, 26.6m @ $0.37 ~ 10m, so about $63m for 83m, or about $0.75/share. $0.50 loss/share, or about $40m lost in market value, by my calcs.
But that's not the real story. What are the shares really worth? My recollection is that they were valued at $0.63 during the takeover, but the valuer wasn't able to be particularly sure about that as they didn't have full access to values within Torchlight etc. (do I recall correctly?). I'm sure GK etc. weren't making the offer out of the goodness of their hearts - they saw value for them in the company at that price. What was the real value? How much have they lost from this related party loans affair? Who would want to buy Perpetual now? Does it have a value any longer? How much have they lost on the shares they sold?
Does BM add value to a company where he is a director?
Balance and Kiwi on OE; thank you for doing the maths.
Nice to hear the fat lady is warming up to sing.!!!!! lol.
Is it correct that Mogridge voted on the loan to TL even though he is a shareholder in TL?
Belg, my belief is that the fat lady has already started her solo;
i) The BNZ bond pull out I believe was around $350m
ii) The run on funds will continue once the moratorium is lifted
iii)The probability they will lose their trustee licence
iv) The possibility of charges being laid against directors
Mogridge was correct when he suggested shareholders could sell to AEP and buy back cheaper at a later date.....
George Kerr is burning through the assets and businesses, raising cash to keep the wolves at bay.
It's one thing to buy distressed assets, it's another thing to maintain and keep them when the market does not want the assets. His Queenstown assets are stuffed like Christmas turkeys.
Meanwhile, look at the losses PGC is taking on the fire sale of HNZ and PGW shares to raise cash - e.g.. PGW loss of $4.525m.
Perpetual & Torchlight were valued at around $45m or 20 cps in GC report - who in their right mind will now leave money with tim to be managed. So value = zero.
Something smells very badly with all the related party transactions at PGC - imo they point towards a very desperate situation there.
Or is it just the stench from the decomposing credibility of George and Bryan?
Meanwhile, when there is a fire-sale, who do savvy investors (or consumers) do?
Grab a bargain, of course!
Well worthwhile noting what Warren Buffett said about such situations :
"When hamburgers go down in price, we sing the 'Hallelujah' chorus in the Buffett household. When hamburgers go up, we weep. For most people, it's the same way with everything in life they will be buying -- except stocks. When stocks go down and you can get more for your money, people don't like them anymore."
And I do NOT mean PGC shares!
Balance, I think you'll find GK still has a presence on HNZ through Pyne Holdings
My understanding is that GK sold his direct shareholding to Torchlight - happened in March 2012.
Being GK, he sold his direct shareholding just below 5% (4.99% to be exact) first so that he did not have to disclose he was selling to Torchlight.
All of his sneakiness caught up with him this week.