PGC - Licenced to Bank

[percy]

When PGC flogg off 20% of their BSH holdings to instos, what price do you expect the instos to pay? ... I'm 99% certain it'll be at a significant premium to today's close at 78 cents which is mainly derived from building society account holders selling and the majority of them probably never owned shares in their lives and are likely to be as well informed as those that sold to Whimp in his rediculos low-ball offer!

Fun and games ...

It is not a done deal that PGC will flogg off any BSH shares to institutions. I will repete that.It is not a done deal that PGC will flogg off any BSH shares to institutions.The PGW deal, should it go ahead will mean more money for PGC, and so the need of extra cash deminishes.therefore PGC shareholders could/will get more BSH shares.Go back to my post 541.

[SCOTTY]

could you elborate on the 22 cents for BSH formula. as i see it sometime ago it was suggested that the ratio for shares might be as high as 1/4 and this would mean that for many purchases of the shares they would be better off to have sold PGC at 40.

BSH trades at .88, so if you buy at .33 and get a 1/2 or 1/3 share split where is the profit in this? can some expert explain.
many thanks

steve

Hi Steve.

The way I see it is this:

The asset backing (book value) of PGC is I think about 52c per share. It will be more if the PGW stake sells above 60cps.

Each PGC share currently has between .25 to .265% of a BSH share. The NTA of the BSH shares is 88c (they are below this today) at say .25%, this would account for 22c of each PGC share asset backing. After the distribution of the BSH shares (@ say .25% you should get at least 1 BSH share for every 4 PGC shares) to the PGC shareholders, the NTA of PCG should drop by the 22c and the shareprice should also reduce by this 22c. On todays price of 35c, PGC should drop down to 13c. The asset backing of PGC would be 52c less the 22c = 30c and theoretically costing you only 13c.(on todays price of 35c). I think the 30c assets backing is very real and probably undervalued.

Because the BSH market is now established and there is a good chance of selling the PGW stake I don't see any need for PGC to place any BSH shares which in my opinion rightfully belong to the PGC shareholders and should be distributed accordingly. There would be cash from the PGW sale in PGC for future divies and other business oportunities or for distrbution to the poor old long suffering PGC shareholders.

This is just my opinion.

Regards

[percy]

Hi Steve.

The way I see it is this:

The asset backing (book value) of PGC is I think about 52c per share. It will be more if the PGW stake sells above 60cps.

Each PGC share currently has between .25 to .265% of a BSH share. The NTA of the BSH shares is 88c (they are below this today) at say .25%, this would account for 22c of each PGC share asset backing. After the distribution of the BSH shares (@ say .25% you should get at least 1 BSH share for every 4 PGC shares) to the PGC shareholders, the NTA of PCG should drop by the 22c and the shareprice should also reduce by this 22c. On todays price of 35c, PGC should drop down to 13c. The asset backing of PGC would be 52c less the 22c = 30c and theoretically costing you only 13c.(on todays price of 35c). I think the 30c assets backing is very real and probably undervalued.

Because the BSH market is now established and there is a good chance of selling the PGW stake I don't see any need for PGC to place any BSH shares which in my opinion rightfully belong to the PGC shareholders and should be distributed accordingly. There would be cash from the PGW sale in PGC for future divies and other business oportunities or for distrbution to the poor old long suffering PGC shareholders.

This is just my opinion.

Regards

Thanks SCOTTY. Approx 43cents buys a $1. Beats half price day at ballantynes.!!!!!

[mouse]

Thanks SCOTTY. Approx 43cents buys a $1. Beats half price day at ballantynes.!!!!!

That is the point. It does not really matter if we get 20 shares or 2 in BSH. The shares we do not get in BSH leave more value in Pyne Gould. At 36cents a share at present, or lower, they are a steal. Roll up!, Half Price Sale.

[percy]

that is of course assuming that BSH is a success and stays at .88, only then will 43 cents buy a dollar.

Looks as though my record for getting it wrong stays intact.!!! With BSH holding SP dropping we are,or must be getting close to only half price,or more.

[SCOTTY]

NZX Market update today has the information that we have been waiting for:

http://file.nzx.com/000/101/4635101.pdf

[percy]

NZX Market update today has the information that we have been waiting for:

http://file.nzx.com/000/101/4635101.pdf

A good announcement.All PGC's BSH shares to shareholders.Loved Real Estate CreditGroup statement " Surplus assets will be realised.and it is intended that any resulting proceeds will be returned to shareholders."

[percy]

percy, hang in there mate.

Thank you.!!!

[Grantas]

Reading the market update I have difficulty in getting my head around the "P note" and its repayment. Its issued by a wholly owned subsidary of PGC to a wholly owned subsidary of BSH and is to be repaid by proceeds from the sale of PGW shares (wholly owned by PGC). Anybody explain how this works?

End plan is for PGC to have the Perpetual Group (587m under management) and the Torchlight Group (no idea of what it manages), with PGC being run by four directors. I have a concern that if the share price doesn't stay realistic to asset value then this company may eventually go private.

[percy]

Good point, i dont think they would be a very popular group of directors if that ever happened and people lost millions are after already losing millions. The P Note is a bit like an on loan between a company, a shareholder trust and beneficaries.

on another subject it reminds me how you would avoid the 33% tax rates on trusts , now if you want to avoid the tax rate on trusts thereby creating on demand loans to the other party who might be being tax at a lower rate, say the B type person in the trust, If you are the both the T person and the B person then you could create an on demand loan to yourself and avoid a **** load of tax.

Glad you can work it out.I thought Marac owed PGC $30mil,that's how wrong I am.!!!!!!