Go to www.hotcopper.com.au PTG thread and read Madamswer post ;Post #57998396 2/12/2021
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Go to www.hotcopper.com.au PTG thread and read Madamswer post ;Post #57998396 2/12/2021
Point taken, and I largely agree. It is foolish to speculate too wildly on light volume, small dollar movements. My frustration that we have not heard any result from the Strategic Review (5 months now) got the better of me.
Though the June 29 Strategic Review announcement implies that the acquisition proposal was rejected, it is not stated explicitly. Does anyone recall Arborgen mgmt actually saying "we rejected the bid"?
Interesting to look back on this analysis done by Sandell Asset Management in 2011, when they owned 14.4% of Rubicon.
https://www.10xebitda.com/wp-content...n-Oct-2011.pdf
At that time, they outlined a strategy to boost the share price (then $0.40 NZD) by either putting the entire company on the block, or selling the controlling interest in Tenon and then listing ArborGen on Nasdaq. Their “normalized valuation” forecast for ArborGen was $500m USD. :rolleyes:
10 long years later, Sandell has lost its patience (sold out in 2017), and we are still waiting to find out if a US-listing is a remotely feasible outcome.
They have been talking allot more about carbon capture lately. Apparently their trees capture allot more carbon.
With all the green money from Companies and Governments, this could be a real game changer.
Seems like something is going to happen in near future..Without NZ operations, no point being based in NZ.
If those last 2 sticky sell bids were to be removed, only the 1 seller at 0.255 and the other at 0.27, then looks like building support could lead to a pretty swift rally pushing back up to where it was previously maintaining above 0.315. Until we then get further updates to push SP to next level.
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Great news. ARB pointing towards reaching its potential at last. A slow burner but anticipating the share price catching fire at some stage down the track.
MKTUPDTE: ARB: ArborGen Holdings Updates Market
29 December 2021
ArborGen Holdings Limited (NZX: ARB) (the Company or ArborGen) announced
today that following completion of the sale of ArborGen's New Zealand and
Australian businesses for NZ$22.25 million (the ANZ Transaction), it has
repaid the US$2.88 million of sub-ordinated debt raised in 2019 from certain
directors / major shareholders and senior management needed to fund the
US$14.4 million acquisition of ArborGen's headquarters in Ridgeville, South
Carolina. The Company has also reduced its Synovus working capital facility
by US$5.5 million, which combined with the sub-ordinated debt repayment, will
result in annual cash interest cost savings of approximatively US$0.4
million.
The Company also announced that its business in Brazil (ArborGen do Brazil)
has executed an agreement to acquire an 8-10 million capacity pine nursery
located in Canoinhas, Santa Catarina, Brazil. The acquisition cost is
estimated at BR$5 million (US$0.7 million) including certain capital
expenditure items.
ArborGen's CEO, Andrew Baum, said "Increasing domestic and export demand, new
pulp mills and strong charcoal markets resulting from increasing iron ore
demand, are collectively driving strong demand for eucalyptus and softwood in
Brazil. ArborGen has grown to become one of the largest commercial suppliers
of eucalyptus and loblolly pine seedlings in the Brazilian market,
replicating its US strategy to convert the market to products with superior
genetics in Brazil."
"We are projecting Brazil's earnings to more than double next fiscal year
(fiscal year ending March 2023) driven primarily by stronger pricing for both
our eucalyptus and pine seedlings, and increased sales. The acquisition of
the Canoinhas nursery will further accelerate this earnings growth and
strengthen ArborGen's position as the leading supplier of pine genetics in
Brazil."