ARV - Arvida Retirement Villages

[ronaldson]

lol looks like they released the news to save the stock price going new lows

Yes, and the fizz has already left the bottle! Back under $1 - only consolation is the DRIP issue price has been fixed at $0.9277 and the share price had drifted below that earlier today.

But lots of bids for shares that are undervalued on the NZX are coming out of the woodwork lately!

[sb9]

What’s this fascination abt 1.70 figure both for ARV and RAK, yet both Boards chose keep quiet until needed to disclose to the market.

[nztx]

The Office Boy finally turfed out the rubbish & low & behold someone dug up something interesting ?

A taste of $1.70 probably would have been welcomed by those who got to suck the Kumara on the CR a while back
closer to the 200 Peg

[Bjauck]

Yes, and the fizz has already left the bottle! Back under $1 - only consolation is the DRIP issue price has been fixed at $0.9277 and the share price had drifted below that earlier today.

But lots of bids for shares that are undervalued on the NZX are coming out of the woodwork lately!

The NZ share market with its “disclosure rules” is becoming the coconut shy sideshow at the fair. Casually lob a few balls at the coconut listings and a company may fall.

[troyvdh]

For once I agree with balance ..something smells...isnt the NTA 2 dollars.Im VERY familiar with this company.

[flyinglizard]

inside trading

[Baa_Baa]

inside trading

Big call, illegal as well. How?

[troyvdh]

Fair call Baa.

[Greekwatchdog]

For Bars take on it.

Arvida Group (ARV) turned down a highly conditional non-binding NZ$1.70 per share takeover bid from an offshore infrastructure fund in September. The bid represented a ~+36% premium to its September price of ~NZ$1.25 (~+89% premium to its last undisturbed price of NZ$0.90). ARV said it has no reason to believe anything further will proceed from this bid; there is a big step between a firm offer and a highly conditional unsolicited non-binding bid. Asset multiples across the sector, and for ARV specifically, remain compressed creating an attractive backdrop for takeovers. We note that since the offer ARV has reported a ~+NZ$130m increase in net debt over the last six months, ahead of expectations and a subdued 1H24 result. Apart from a deep discount to book value, ARV's high level of (admittedly long dated) embedded value may have attracted a patient buyer.





Why ARV?
We believe the infrastructure bidder could have been attracted to ARV's ~-20% discount to its potential long-term cash release from its currently built up embedded value and development work in progress. ARV is the only stock in the sector trading at a material discount on this measure. While the bid was at a ~+10% premium to this value, a patient investor could extract this cash while still being left with the underlying business. ARV is also trading at ~0.5x its book value, a sector and historic low.

[bottomfeeder]

Anyone got an idea who the offeror was. Looks like, from the exchange rate, it may have been the US. You would think they must already be on the share register, under the 5% threshhold. Unlikely that someone looking at that price would give up so easily. They must be waiting for the dust to settle, before the machinations start. I would say they will buy and sell to keep the price down until they are ready to take out a major player or two. Then whammy a hostile takeover. Sounds so simple to do.