LPC

[Snoopy]

Raf Manji, the CCC Financial Controller, will soon be managing my LPC interests, after his arm's length clean out of those 'filthy capitalistic scum' minority shareholders. And good on him for dealing to them!

The City Council is financially cash strapped. So what I would do is dip into the LPC cash piggy bank to equalise the pain with the rest of the city.

Quoting our mayor in the press today
"Christchurch Mayor Lianne Dalziel has said the council is considering releasing up to $400m from its commercial and investment arm as it addresses a funding shortfall and the city looks to rebuild from the damaging 2020 and 2011 earthquakes."

So the raping and pillaging of LPC is confirmed under council ownership. Even though Northington's valuation report said it wasn't possible to decouple the LPC insurance capital from what is a going concern. How could Northington's have been so naieve? Unless of course they were really working for the people who paid them instead of minority shareholders, in which case the whole Northington evaluation makes perfect sense.

SNOOPY

[Marilyn Munroe]

This is interesting. An on-market sale has been made at $4.10, although for a small parcel.

This is greater than the CCHL offer of $3.95.

Boop boop de do
Marilyn

[Snoopy]

This is interesting. An on-market sale has been made at $4.10, although for a small parcel.

This is greater than the CCHL offer of $3.95.

Yes Marilyn, something is afoot. The only explanation that makes sense is that someone is going for an alternative valuation. And they are having a good bet it will be more than $3.95.

SNOOPY

[percy]

Yes Marilyn, something is afoot. The only explanation that makes sense is that someone is going for an alternative valuation. And they are having a good bet it will be more than $3.95.

SNOOPY

Something afoot?
You must be joking!
243 shares at $4.10 is $996.
Just some one p,ssing in the wind !

[Marilyn Munroe]

Riddle me this. If the Northington Partners report is an accurate reckoning of the value of Lyttelton Port why are CCHL spending $3.95 to purchase a $3.50 value?

Boop boop de do
Marilyn

[Snoopy]

Riddle me this. If the Northington Partners report is an accurate reckoning of the value of Lyttelton Port, why are CCHL spending $3.95 to purchase a $3.50 value?

$3.95 for 20% of the company and about $2.20 for the remaining 80% of the company comes to ....... less than $3.50.

SNOOPY

[Snoopy]

Looking again at the "Takeover code approval order 2000", with 1st June 2013 amendments myself: I can't find the 50% must not accept for an alternative determination to be able to be called either.

The closest I can find is section 23. But that only applies if the offeror does not control "more than 50% of the voting rights in the target company". Since CCHL controls 79.7% of shares,this clause does not apply! It will be very unfortunate if Northington's have misread this clause as applicable, when it is not.

I have reread the takeovers code yet again.

http://www.legislation.govt.nz/regul...rder_resel&p=1

Section 23, that I referred to above, is a minimum acceptance condition of the offer. The offer has now been declared unconditional. So the above clause has done its job. Now we move onto the compulsory acquisition stage.

Compulsory acquisition is a separate part of the act (Part 7). The contents of the acquisition notice are set out in act section 55 (under Part 7). Clause 56(1) lays out that we 'holdouts' must received the same consideration as everyone else. Clause 56(2) lays out that

"Subclause 56(1) applies only if acceptances of the offer were received in respect of more than 50% of the equity securities that were the subject of the offer in the class in respect of which the consideration is to be determined."

This has now happened. So I think Marilyn, and any other holdouts out there, this means we are now denied the option to go for an alternative valuation.

Darn it! (with my shareholder hat on)

Woo hoo! (with my ratepayer hat on. You capitalist scum should never have imagined that you could take on the Peoples Republic of Christchurch and win!)

SNOOPY

[Marilyn Munroe]

Woo hoo! (with my ratepayer hat on. You capitalist scum should never have imagined that you could take on the Peoples Republic of Christchurch and win!)

SNOOPY

Marilyn shakes her tiny capitalist jewel encrusted hand at Commrade Aviator Hero Snoopy. May you join your doggy cosmonaut commrade Laika and be shot into space in a Sputnik capsule.

Boop boop de do
Marilyn

[Snoopy]

Marilyn shakes her tiny capitalist jewel encrusted hand at Commrade Aviator Hero Snoopy. May you join your doggy cosmonaut commrade Laika and be shot into space in a Sputnik capsule.

Boop boop de do
Marilyn

Wrong answer Marilyn. You were meant to review the takeovers code again, point out my foolish misinterpretation in getting the wrong end of the stick, then dazzle me with your alternative path to getting the whole of LPC revalued. I am still holding on to my compulsory acquisition form hoping you can come through.....

SNOOPY

[Marilyn Munroe]

I am still holding on to my compulsory acquisition form hoping you can come through.....

SNOOPY

Sorry Snoopy, I have capitulated and sent in my acceptance. I sent the form away last week, I haven't got the check yet.

I tried to work out how the statement in 1.4.3 of the Northington Partners report arises from the code but my brain started to hurt.

My bigest beef in all this is the valuation method adopted by Nortington Partners. A discounted cash flow valuation is not an apropriate valuation method when a match to LPC is availiable and publicly quoted on an open market. I refer to Port of Tauranga. Sure it is not an exact match but it should not be beyond the skills of a experienced analyist to make appropriate adjustments.

A car anology often helps. Just imaging that you are selling a Toyota Corolla in a relared party transaction which happens to be beneficial tax wise. Now imagine the reaction of the tax department when you explain to them the price of the transaction is something you just sort of plucked out of thin air and the fact cars of the same age make and model have been sold through a vehicle auction at twice your imaginary value is of no consequence.

Northingtons are asking us to accept an abstract method delivers a better measure of value than one set by the market.

Boop boop de do
Marilyn

Edit: Just checked my bank a/c the money turned up today(Tues).