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Should really fall back down to NTA (if not lower)... bit puzzling why it is at a huge premium during these times.
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Originally Posted by trader_jackson
Should really fall back down to NTA (if not lower)... bit puzzling why it is at a huge premium during these times.
In this market anything's possible (if not probable), but IIRC Augusta has been in the process of transforming to a more "asset light" business model which makes NTA based valuations a little less relevant than for most the other listed property companies.
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They typically own 10% of new offerings, latest one delayed of course...
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https://www.nzx.com/announcements/352659
Ouch!
30c per share write down and a 1:1.9 rights issue at 50c.
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Originally Posted by Balance
The presentation was an interesting read. Interesting that Centuria could end up with 24.9% - does NZ have a creeper provision in its Takeovers Code so they can slowly move to a controlling/majority position?
Small nit picking point: I think it says it's being done at $0.55?
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Normally the limit for a shareholding is 19.99% before a takeover is required. There has been a relaxation to 24.99% due to temporary COVID relief. You cannot creep beyond that.
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Member
Originally Posted by Dassets
Normally the limit for a shareholding is 19.99% before a takeover is required. There has been a relaxation to 24.99% due to temporary COVID relief. You cannot creep beyond that.
Not sure all that will matter in due course, if Centuria offered $2, dumped their holding and are sniffing around again at under $1, having done all the due diligence already, they are quite likely launch a new takeover, presumably at much less than $2
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Member
Originally Posted by trader_jackson
Should really fall back down to NTA (if not lower)... bit puzzling why it is at a huge premium during these times.
Probably not the best way to value this puppy, material and growing revenue chunk now from syndicate mgmt fees. Anyone who's been thru a brochure will be aware of the risk of rent reverting to "market rates" somewhere in the ensuing 5 yrs (probably down for near future) yet mgmt fees ALWAYS increase by set % (standard practice as far as i know). So mum and dad investors supporting the dividend.
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Originally Posted by traineeinvestor
Small nit picking point: I think it says it's being done at $0.55?
You are right - thanks for correction.
Interest to note for those who have invested for dividends and yield :
1. AUG has paid out 16.375c in dividends (dps) since NPT became Augusta.
2. AUG is now requiring holders with the 1:1.9 rights issue to front up with 28.95 cps to plug the $27m hole and pay down debt!
Net net - holders are down 12.575 cps in 3 years!
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When you read the recent announcements regarding cancelled deals, one would have to think , have they been reckless with the purchasing or intended purchases over the last year or there abouts?
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