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17-04-2019, 09:28 PM
#4451
REL's farms are all in NZ.Well they were when I held REL shares.Don't currently hold them.
I am told they are some of NZs best farms..
They made a great deal of money selling their "right to supply shares" in Fonterra,and then started supplying Synlait.Suppliers not required to hold SML shares.
They did hold shares in Tandou [asx] and ended up accepting shares in Websters [asx listed] when they took over Tandou.David Cushing is a director of Websters.
Direction to run will not be a problem with Finlay and Cushing on the board.
I am pleased you added to your holding.
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18-04-2019, 05:07 AM
#4452
Occasionally I wake up, discover that this Seeds buy-out has still not happened and then go back to sleep whilst wondering whether it ever will.
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18-04-2019, 08:35 AM
#4453
Wake up.Snow Leopard.
Overseas Investment Office OIO approves seeds sale.
Game on.
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18-04-2019, 09:20 AM
#4454
Originally Posted by percy
Wake up.Snow Leopard.
Overseas Investment Office OIO approves seeds sale.
Game on.
From this morning's announcement. Nothing new but a slight change in emphasis (the bracketed bit)
"After the sale proceeds are received on settlement and debt repaid, PGW would expect to have a cash surplus of circa $210 million (subject to transaction completion timing, working capital requirements that can fluctuate materially through the annual cycle and other transaction wash-up items)."
I guess this fixes up the pension plan shortfall that periodically comes up. Big redundancy cheques to come for all those overpaid execs who now find themselves in a much smaller pond, courtesy of we shareholders of course. Redundancy does not apply to any executives with one leg though. They have already been 'right sized' by being chopped in half.
"The options for a capital return to shareholders being contemplated by the Board would allow PGW to reset its debt position and right-size its corporate operations for the business going forward.” Mr Burt said."
Hmm, so maybe not quite as much cash available to shareholders as previously mooted? A very sad day as the benefits of nearly half a century of New Zealand seed research and development are harvested overseas. No doubt plenty of cash still left though, for the greedy short term shareholders such as Snow Leopard, Percy and myself.
SNOOPY
Last edited by Snoopy; 19-04-2019 at 09:24 AM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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18-04-2019, 09:39 AM
#4455
The Pension Plan no doubt still exists
Certain irony that some old timer seeds employees who have retired will still get paid by PGW (along with some who worked for other now defunct parts of PGW who are still enjoying long life’s)
”When investors are euphoric, they are incapable of recognising euphoria itself “
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18-04-2019, 09:48 AM
#4456
Originally Posted by Snoopy
From this morning's announcement. Nothing new but a slight change in emphasis (the bracketed bit)
"After the sale proceeds are received on settlement and debt repaid, PGW would expect to have a cash surplus of circa $210 million (subject to transaction completion timing, working capital requirements that can fluctuate materially through the annual cycle and other transaction wash-up items)."
I guess this fixes up the pension plan shortfall that periodically comes up. Big redundancy cheques to come for all those overpaid execs who now find themselves in a much smaller pond, courtesy of we shareholders of course. Redundancy does not apply to any executives with one leg though. They have already been 'right sized' by being chopped in half.
"The options for a capital return to shareholders being contemplated by the Board would allow PGW to reset its debt position and right-size its corporate operations for the business going forward.” Mr Burt said."
Hmm, so maybe not quite as much cash available to shareholders as previously mooted? A very sad day as the benefits of nearly half a century of New Zealand seed research and development are harvested overseas. No doubt plenty of cash still left though, for the greedy short term shareholders such as Some Leopard, Percy and myself.
SNOOPY
More than enough to takeover REL.?..lol.
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19-04-2019, 04:07 AM
#4457
Originally Posted by percy
Wake up.Snow Leopard.
Overseas Investment Office OIO approves seeds sale.
Game on.
I voted against this sale.
Forecast here is for snow, mostly sub-zero temperatures and a wind-chill factor that says sleep through it.
When they pay me my money, I will look at spending it on a thicker fur coat:
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19-04-2019, 11:24 AM
#4458
Originally Posted by Snoopy
From this morning's announcement. Nothing new but a slight change in emphasis (the bracketed bit)
"After the sale proceeds are received on settlement and debt repaid, PGW would expect to have a cash surplus of circa $210 million (subject to transaction completion timing, working capital requirements that can fluctuate materially through the annual cycle and other transaction wash-up items)."
I guess this fixes up the pension plan shortfall that periodically comes up. Big redundancy cheques to come for all those overpaid execs who now find themselves in a much smaller pond, courtesy of we shareholders of course. Redundancy does not apply to any executives with one leg though. They have already been 'right sized' by being chopped in half.
"The options for a capital return to shareholders being contemplated by the Board would allow PGW to reset its debt position and right-size its corporate operations for the business going forward.” Mr Burt said."
Hmm, so maybe not quite as much cash available to shareholders as previously mooted? A very sad day as the benefits of nearly half a century of New Zealand seed research and development are harvested overseas. No doubt plenty of cash still left though, for the greedy short term shareholders such as Some Leopard, Percy and myself.
SNOOPY
The commentary is consistent with when PGW reported its interim results in March this year.
The company's debt is always highest around the interim results (peak summer seasonal working capital requirements) and then, drops to a lower level on balance date (winter).
So, I think we can safely assume that PGW's capital repayment will be between $210m (zero debt for PGW) and $292m ($82m of debt at seasonal debt peak level).
Agria will want maximum capital repayment (it desperately needs the cash) while the other shareholders will want a sound operating business (ex S&G) with appropriate leverage.
So what's appropriate leverage?
Using the company's forecast of $25m - $30m EBITDA for F19 = EBIT of $16m - $21m.
Allowing corporate interest rate these days of around 4% pa - 5% pa, it can be seen that PGW can comfortably leverage up to $100m a year.
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19-04-2019, 11:45 AM
#4459
Member
Originally Posted by Balance
The commentary is consistent with when PGW reported its interim results in March this year.
The company's debt is always highest around the interim results (peak summer seasonal working capital requirements) and then, drops to a lower level on balance date (winter).
So, I think we can safely assume that PGW's capital repayment will be between $210m (zero debt for PGW) and $292m ($82m of debt at seasonal debt peak level).
Agria will want maximum capital repayment (it desperately needs the cash) while the other shareholders will want a sound operating business (ex S&G) with appropriate leverage.
So what's appropriate leverage?
Using the company's forecast of $25m - $30m EBITDA for F19 = EBIT of $16m - $21m.
Allowing corporate interest rate these days of around 4% pa - 5% pa, it can be seen that PGW can comfortably leverage up to $100m a year.
So if we take the midpoint of $210m and $292m = $251m and divide by 755m shares would give us a capital return of 33c/share.
The remainder of the company, recapitalized with $41m should be worth about 40 cents so 77 cents all up. I would be happy with that.
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20-04-2019, 08:40 AM
#4460
Originally Posted by freddagg
So if we take the midpoint of $210m and $292m = $251m and divide by 755m shares would give us a capital return of 33c/share.
The remainder of the company, recapitalized with $41m should be worth about 40 cents so 77 cents all up. I would be happy with that.
Your numbers have lost me.
40c + 33c = 73c
40c = $302m valuation for residual Rural Rump business?
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