Orion Health

**moimoi** · 18-09-2018, 12:45 PM

Perhaps its because unless your buying for a quick flick into the probable buyout offer then the company appears near uninvestable. The unknowable is what value is the market going to ascribe to the loss making Populations and Hospitals business(s).

There is currently little visibilty how long they'll take to reach profitability (if ever), and for how much longer they will keep spending like drunken sailors on "developing" the product.

The whole thing may not last much longer on the NZX anyways. The controlling shareholder is selling 20% or 19.5M of its 97.5M shares. Not only does this inflate the "buyback" figure to encourage others to accept, it also raises near sufficient cash to buyout any pesky minority holders remaining at the 90% level of compulsory aquisition and take it private.

**whatsup** · 24-09-2018, 03:49 PM

So why is OHE selling at a 20% discount to its buy back indicated price, does not the market believe the project ?
Roll on Friday , lets hope that there is some good news update for us long sufferers ?

**Balance** · 25-09-2018, 07:14 AM

Originally Posted by whatsup

So why is OHE selling at a 20% discount to its buy back indicated price, does not the market believe the project ?
Roll on Friday , lets hope that there is some good news update for us long sufferers ?

20% discount? Maybe not.

Firstly, share buyback range has dropped from $1.24 to $1.29 to $1.16 to $1.26.

Secondly, there is no certainty that the final buyback price will be within the new range! Could be lower (subject to adjustments) in which case the company will seek shareholders' approval on the buyback price.

Thirdly, the transaction is still subject to a number of conditions outside of OHE's controls - including OIO approval. Those who went through the Tegel situation will appreciate that this can be most unpredictable!

Also, McCrae will continue to be CEO when it is clear that he is not leadership material and has overseen a catastrophic destruction of shareholders' wealth.

Guess those who were brave enough to buy OHE shares at between 60c to 70c (where big volumes were done) are happy to take their gains and move on now that the value of OHE is 'established' and it's clear that nothing is going to change with McCrae in charge.

Just my take on this sad saga.

**Jonboyz** · 01-10-2018, 10:03 AM

AGM: Orion Health saved?

"The mood was generally downbeat as investors scoffed into the sausage rolls after the main AGM presentation..."

SOURCE: https://www.nzherald.co.nz/business/...ectid=12133606

**babymonster** · 01-10-2018, 04:17 PM

well... just can crossed my fingers.

**Balance** · 01-10-2018, 04:34 PM

Originally Posted by babymonster

well... just can crossed my fingers.

Reading the NZ Herald article, seems to me that McCrae is undertaking privatisation by stealth.

Under his leadership, OHE has burned through $125m of the IPO money while he has extracted over $2m of salaries & fees since listing. The BOD took over $700k of fees last year!

Chairman Ferrier's fees were $195,000 per year!

Cannot see him (McCrae) being prepared to carry those kind of fees post share buyback in a severely slimmed down OHE, can you?

If I had shares, I would hold and see him out - he is sure to privatize post the share buyback and will pay more than the share buyback price imo.

**RupertBear** · 01-10-2018, 04:48 PM

Originally Posted by Balance

Reading the NZ Herald article, seems to me that McCrae is undertaking privatisation by stealth.

Under his leadership, OHE has burned through $125m of the IPO money while he has extracted over $2m of salaries & fees since listing. The BOD took over $700k of fees last year!

If I had shares, I would hold and see him out - he is sure to privatize post the share buyback and will pay more than the share buyback price imo.

Thanks for sharing your thoughts Balance, I was considering bailing out today and putting whats left of my investment somewhere else as I can see this dragging on for quite sometime and the sp staying stagnant or going down. Hmm not sure

**Balance** · 24-10-2018, 10:43 AM

http://nzx-prod-s7fsd7f98s.s3-websit...705/289085.pdf

OIO approval received - this is the one condition which McCrae referred to as probably the most opaque with no idea of time line.

So shareholders could very well get their payout by Christmas 2018.

**RupertBear** · 24-10-2018, 10:48 AM

Originally Posted by Balance

http://nzx-prod-s7fsd7f98s.s3-websit...705/289085.pdf

OIO approval received - this is the one condition which McCrae referred to as probably the most opaque with no idea of time line.

So shareholders could very well get their payout by Christmas 2018.

Hope so, would like to see the back end of this mutt.