CDL & CDI ... Another Great Result

[nztx]

No complaints on the 'being steady' & 'performing' parts .. if even a bit on the light side in times
when the residential property market is reportedly on fire & going great, firing on all guns ahead ..

Somehow many might be hoping / expecting such exciting vibrant market conditions to be showing slightly
better in CDI's neck of the woods ..

but that may still show up .. who knows .. or maybe not ..

[macduffy]

Somehow many might be hoping / expecting such exciting vibrant market conditions to be showing slightly
better in CDI's neck of the woods ..

Let's wait for the next report and trust that the lack of builders/tradesmen doesn't hold back CDI's ability to sell sections.

[DarkHorse]

For me ACC's purchase of 7 million shares in October - to own over 14 million in total (Dec a whisker below 5%) - was a a great vindication that the company is being run well, regardless of majority holder (ACC have great track record and do their homework).
With a very lean management structure, consistent EPS growth over 10 years, undervalued assets on the balance sheet and booming land prices, "more of the same" (as nztx put it) sounds fine to me

[LaserEyeKiwi]

I think they are likely to get gobbled up by MCK fully at some point over the next 12-18 months. CDL is trading at such a ridiculously low earnings multiple - BEFORE SUBTRACTING THE CASH PILE - that MCK would be stupid not to scoop up the remaining shares.

[podg]

you know, i must have thought that same thing about 6-8 times in the past 10 years. still nothing

I think they are likely to get gobbled up by MCK fully at some point over the next 12-18 months. CDL is trading at such a ridiculously low earnings multiple - BEFORE SUBTRACTING THE CASH PILE - that MCK would be stupid not to scoop up the remaining shares.

[BlackPeter]

I think they are likely to get gobbled up by MCK fully at some point over the next 12-18 months. CDL is trading at such a ridiculously low earnings multiple - BEFORE SUBTRACTING THE CASH PILE - that MCK would be stupid not to scoop up the remaining shares.

I think you need to look at the bigger picture:

Yes, CDL (NZ) is majority owned by MCK (NZ)
However MCK (NZ) is majority owned by MCK (UK).
MCK (UK) is majority owned by CDL (Singapore) and
CDL Singapore is majority owned (through a number of funds) by the Kwek family.

Big picture is: whatever is good for the Kwek family is going to happen.

I do not see how it would matter to them at all whether (a miniscule part of) their wealth is hidden in CDL (NZ) or in MCK (NZ).

So - why should they bother?

[Scrunch]

I think they are likely to get gobbled up by MCK fully at some point over the next 12-18 months. CDL is trading at such a ridiculously low earnings multiple - BEFORE SUBTRACTING THE CASH PILE - that MCK would be stupid not to scoop up the remaining shares.

I wouldn't be surprised to see them taken over, but IMO its more likely to be a private equity offer that is sufficiently compelling that MCK directors support it. If MCK were inclined to make a full takeover offer, it probably would have happened already. As podg notes above, similar conditions to the current one's have existed many times in the last 10 years. Also until we have a confirmed normal border and normal international tourist flows, MCK is likely to keep good cash balances as a buffer for an uncertain future.

[BlackPeter]

I wouldn't be surprised to see them taken over, but IMO its more likely to be a private equity offer that is sufficiently compelling that MCK directors support it. If MCK were inclined to make a full takeover offer, it probably would have happened already. As podg notes above, similar conditions to the current one's have existed many times in the last 10 years. Also until we have a confirmed normal border and normal international tourist flows, MCK is likely to keep good cash balances as a buffer for an uncertain future.

No takeover without the majority shareholder agreeing and selling out. Why do you think the majority shareholder Kwek Leng Beng should bother (https://en.wikipedia.org/wiki/Kwek_Leng_Beng)? Any indication that he needs cash? I am pretty sure he topped up his fortunes last year as any other billionaire did as well.

[Southern Lad]

Does CDI have a greater value to one of the larger group home builders (e.g. Fletcher Homes, GJ Gardener, Stonewood, etc.) that could justify a takeover (or purchase of underlying assets) at a price higher than NTA?

Securing exclusive building rights over land would enable them to unlock further value through the margin generated on buildings as well as the land.

[BlackPeter]

Does CDI have a greater value to one of the larger group home builders (e.g. Fletcher Homes, GJ Gardener, Stonewood, etc.) that could justify a takeover (or purchase of underlying assets) at a price higher than NTA?

Securing exclusive building rights over land would enable them to unlock further value through the margin generated on buildings as well as the land.

Possible ... but I think you still don't understand that CDI is a very small gem in huge international property empire majority owned by the Hong Leong group which is owned by the Kwek family in Singapore. Selling this little gem (even above NTA) would be for the Kwek family like it would be for McDonalds to sell one of their national leases for a handful of dollars to Restaurant Brand ...

Why would anybody want to sell the milking cow if they can continue to milk it?

Sure - there might be reasons, if the dollars are really convincing, but I would not base my investment strategy on it happening :