PGW - PGG Wrightson

[Snoopy]

Did anyone go to AGM yesterday? Very curious to know how it went, and if any interesting questions were asked.

There is a recording of the meeting on the PGW investor website. For your interest during questions the Chairman made a comment on the cash balance at the end of year balance date. He said that $50m of accounts receivable were collected in the five business days of the financial year, including $11m on the last day. IOW having large amounts of cash on the balance sheet on 30-06-2020 wasn't policy. It was a matter of circumstance.

SNOOPY

[forest]

Yea, I attended the meeting.
Meeting went well, I had the feeling that PGW is better focused on a realistic business model now the company is simpler, smaller and with a more robust balance sheet.
The question was ask of the Chair about offers and likely hood of takeover maybe by one of their 2 largest (overseas) share holders.
The answer was no offers and no straight answer on how likely it is for one in the future.
What I did found interesting that the Chair seemed a little uncomfortable or annoyed with this question. While answering it seemed to me that he changed body language in a way that makes me wonder what to think of his answer.
Add to this todays notice of more than 1 percent increase in share holding by BCA and Balance's expectation of a takeover for quite some time.
A takeover or scheme could well be on the horizon.

[iceman]

Yea, I attended the meeting.
Meeting went well, I had the feeling that PGW is better focused on a realistic business model now the company is simpler, smaller and with a more robust balance sheet.
The question was ask of the Chair about offers and likely hood of takeover maybe by one of their 2 largest (overseas) share holders.
The answer was no offers and no straight answer on how likely it is for one in the future.
What I did found interesting that the Chair seemed a little uncomfortable or annoyed with this question. While answering it seemed to me that he changed body language in a way that makes me wonder what to think of his answer.
Add to this todays notice of more than 1 percent increase in share holding by BCA and Balance's expectation of a takeover for quite some time.
A takeover or scheme could well be on the horizon.

Thanks for the observations forest

[Snoopy]

Time to revisit your assumptions, Snoopy.

I have to admit HY2021 is looking better than I expected. However that 'at least' 8c forecast interim dividend will not be finally confirmed until after the half year results are in next year. So let's hope everything holds up and wool comes back into the black. Storm clouds on the horizon for the livestock division in 2HY2020 though. The drought this year saw much slaughtering of stock was brought forward. So fewer beasts to go under the hammer this financial year.

Big picture to me is still the same however - what price will Beijing pay to takeover PGW.

Think it is going to have to be closer to $3.50 now than $3.00.

The Chairman admitted to giving a visiting delegation from the Chinese BAIC Limited a whistle stop tour of PGW's business in N.Z. earlier this year. But he was quite adamant that the investment was purely strategic when he asked BAIC representatives their plans. No evidence that BAIC have been buying above $2.75 yet. Until proven otherwise, I am assuming any post AGM share price flurry is due to NZ based yield chasers (now the dividend is forecast to return), not BAIC.

I won't be buying any more shares myself above $2.75. I don't think the business picture painted going forwards at the AGM justifies a further re-rating in the share price going forwards.

SNOOPY

[sb9]

Link to ASM presentation video as per below...

https://www.youtube.com/watch?v=U9Uq...ature=youtu.be

[sb9]

BCA (Beijing) buying up big again... over $2million splashed out to buy 766k shares at average of $2.73 last couple of weeks.

Gotta wonder why anyone would be selling at current levels with BCA's of intent of keep buying on market...

[Balance]

Gotta wonder why anyone would be selling at current levels with BCA's of intent of keep buying on market...

Let them - scrip is getting ever tighter even as the PGW turnaround story gets better and better.

Been happy to top up whenever the opportunity arises - my last two top ups were at $2.71 and $2.59 (thanks to Snoopy!).

[sb9]

Let them - scrip is getting ever tighter even as the PGW turnaround story gets better and better.

Been happy to top up whenever the opportunity arises - my last two top ups were at $2.71 and $2.59 (thanks to Snoopy!).

Notice someone keeps replenishing at 2.95 or thereabouts and promptly gets taken out by bidder after few minutes. Until that seller has finished selling, it'll continue to hover around 2.95 or so...

[Balance]

Notice someone keeps replenishing at 2.95 or thereabouts and promptly gets taken out by bidder after few minutes. Until that seller has finished selling, it'll continue to hover around 2.95 or so...

Need Snoopy to get really really negative* like he did a few months ago to drive the sp towards $2.59 again - am happy to pick up as many as I can!

* Negative as in high debt levels, breaching banking covenants, profits heading south, drought, no dividends etc etc.

[Ant]

Any thoughts on whether the OIO will allow a full takeover of PGW ?