August capital limited

[traineeinvestor]

New takeover offer - at about $1.00 which is half the previous offer. Mostly scrip.

http://nzx-prod-s7fsd7f98s.s3-websit...659/324454.pdf

Disclosure: not held

[thegreatestben]

Good for me with an avg. buy of 76c but maybe not for many who were in before Covid?

[traineeinvestor]

To correct my earlier post - it's a "takeover notice" not a "takeover offer."

"The takeover notice is not a takeover offer. If Centuria proceeds to make a takeover offer, it must do so within the period that begins 14 days and ends 30 days after today. Shareholders should be aware that Centuria is not legally obliged to make an offer during that period and, if it does not do so, Centuria’s takeover notice will lapse."

With the shares trading at $0.92 against a formal offer price of $1.00 (per takeover notice) or $0.95 (based on CNI's last traded share price on Friday), the market seems to be expecting that the offer will proceed.

[thegreatestben]

Do they need 50.1% support to go ahead? The document I'm looking at suggests between centuria and the men at the top have over 40% holding. That doesn't leave much to chance?

[traineeinvestor]

Do they need 50.1% support to go ahead? The document I'm looking at suggests between centuria and the men at the top have over 40% holding. That doesn't leave much to chance?

The headline condition is Centuria reaching 90% of total shares in issue. They can waive that subject to getting to at least 50.1%.

There is also a laundry list of other conditions including "no material adverse change"

[Tradernoob]

Anyone want to share their thoughts on the latest announcement with Centuria?

[thegreatestben]

An extra 2 cents, seems like it's a done deal.
Share price has bumped accordingly.

Anyone have any thoughts on the value of the Centuria shares being offered?

[dibble]

An extra 2 cents, seems like it's a done deal.
Share price has bumped accordingly.

Anyone have any thoughts on the value of the Centuria shares being offered?

Not easy, need to track both CNI share price (moving around a bit lately) and the exchange rate (remember to choose the most relevant exchange rate ie the one you have access to if you did it on your own) on your spreadsheet so offer value (originally estimated at $1NZ) is far from static.

[traineeinvestor]

Underwhelmed.

CNI shares have slipped from AUD1.91 when the offer was priced (per announcement and offer document) to AUD1.75 today. They have just gone ex a 5.2cent fully franked dividend (which means it will be about 6 months to wait until the next divided). Also note that NZ shareholders will not benefit from franking credits on CNI's future dividends. The ASX 200 has risen modestly during that time.

The value of the offer is: (AUD1.75 * .392 *1.07) + NZD0.22 = NZD0.95.3.

That said, CNI now owns or has acceptances for a total of 63.9% of AUG's issued capital so I can't imagine they will be under any pressure to raise the offer to get to 100%.