Just re-read the announcement. Share will trade again latest by tomorrow morning, i.e. announcement likely to be later today - or alternatively coming with tomorrows opening.
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I`m hopeless at understanding the legal transaction like these announcements (companies selling shares to holding companies with all but the same names etc) but if somebody is bored who can understand the legalese can you clarify my understanding...
The way I read it the guts are;
Toady Macquarie have sold 15% of their shares to NZ share brokers who will ring up their clients today to on sell them.
The share brokers are going to pay Macquarie $1.08.
Therefore none will actually get traded on the public NZX.
So Basically it's a 15% placement from Macquarie to a NZ broking firm who will on sell them to their own clients.
That's almost it. Brokers will work with their clients in a bookbuild whereby they're invited to place their bid at a price and quantity that they want them at with a minimum of $1.08 bid. Brokers will charge their clients brokerage at standard rates for those that are successful with their bid and brokers also earn fees from Macquarie as the vendor which is why Winner69 quite righty suggested its a good day for brokers. Some investors will sell existing shares in other companies to fund their purchase making it an even better day for brokers but other canny investors knew this placement was coming and have funds already reserved for it.
Dont waste your time with ASB. not participating...
Just looked at Craigs Updated View on OCA today - just released.
Target Price of $1.18
Consensus estimates
Average - $1.20
High - $1.26
Low - $1.13
4 partners were polled.
All the brokers, those especially who now have shares to offload, will no doubt suddenly become more ambitious about OCA, and accordingly target prices will rise.
But not to ambitious yet because there is still 40 odd percent to offload
Forsyth are the ones at $1.13 - no wonder they didn't get the call up to participate. Too busy directing clients to ARV although you wouldn't think so given it is still more undervalued than OCA at its previous closing price.
Thanks Beagle for replying and clarifying it all. Well summarized.
Whatever the next few weeks has in store for the SP, I see it as the beginning of a sensible exit by Macquarie which will leave OCA unimpeded by the overhang for us remaining shareholders. I`m glad their getting onto the exiting process rather than lingering for a few years.
The fact they have now lost control of the company leads me to suspect the unloading the remaining 40% will be forthcoming untill they are fully out.
I believe Macquarie have bought a terrific business to the NZX and I believe everyone, including the residences themselves, has and will win out of this.
I believe terrific MAQ know how to extract maximum value for themselves and their timing is key to doing just that.Clever also to dump near the very top in tranches . Too rich for me at this stage of the cycle and ive got my eyes on something hugely discounted, over the ditch in the same sector instead..