MPG - Metro Glass

[Balance]

https://www.prnewswire.com/news-rele...300634803.html

Another Bain Capital deal - bought in 2014 for $230m, sold for $1.2 billion in 2018.

These boys know what they are doing and they have a different investment time horizon and strategy than your average quarter by quarter 'watch the sp' investors.

[Leftfield]

https://www.prnewswire.com/news-rele...300634803.html

Another Bain Capital deal - bought in 2014 for $230m, sold for $1.2 billion in 2018.

These boys know what they are doing and they have a different investment time horizon and strategy than your average quarter by quarter 'watch the sp' investors.

Sssoo you'll be buying in too Balance?

[Balance]

Sssoo you'll be buying in too Balance?

Ahem - long and wrong but bought a few more yesterday.

[Leftfield]

Ahem - long and wrong but bought a few more yesterday.

Could be worth a punt to follow Bain, but not for me. Wish you well.

[Balance]

Good finish to the day - well bid at 44c and sellers retreating to 47c.

Wonder if Bain may attempt a takeover on their own once they reach 20% first.

[Balance]

Crescent Capital that used to own Metro have bought the Viridian assets from CSR for A$155m. Viridian the past 2 years has had ebitda of A$20.3m in 2017 and A$18.1m in 2018 so the price is 8.0x EV/evitda based on the last 2 years operating earnings.

If we applied that valuation to Metro it would $1.25 per share ($41m ebitda x 8.0 less $95m debt)

At $0.44 Metro must be being looked at by FBU, probably APL, maybe Bain. Apply a discount for the market uncertainty and at 75c+ they are a steal, especially for APL (not sure they have the capacity) or FBU...

Look to me like Bain is front-running for any potential bidder for MPG.

http://www.scoop.co.nz/stories/BU181...lass-stake.htm

Bain sold 8.2m shares at $1.70 at the IPO - now they can buy back 20m shares at 40c!

Crescent buying into Viridian and Bain buying back into MPG suggest they both see huge upside in the businesses - typical counter-market sentiment players who buy when others are panicking.

[Scrunch]

"Look, Jerry, I'm looking for negative control, no more than 30, 35 percent. Just enough to block anybody else's merger plans and find out from the inside if the books are cooked. If it looks as good as on paper, we're in the kill zone, pal."

NZ legislation makes it hard to get and stay in the 30 to 35 percent zone. If that's someone's plan, its not a good one.

[Balance]

NZ legislation makes it hard to get and stay in the 30 to 35 percent zone. If that's someone's plan, its not a good one.

You can - with other shareholders' approval at an EGM.

[Balance]

Could be worth a punt to follow Bain, but not for me. Wish you well.

I do not like to swim with the reef fishes and be panicked into the mouth of the hungry sharks.

46.5c now - 25% gain for those who swam against the reef fishes bailing out at 37c.

Looks to me like Bain is happy to continue buying - crossings of 200,000 shares done at 46c.

Question is - will they have to pay up to 50c in the short term to get their 20%?

[Leftfield]

I do not like to swim with the reef fishes and be panicked into the mouth of the hungry sharks.... Looks to me like Bain is happy to continue buying - crossings of 200,000 shares done at 46c.

Question is - will they have to pay up to 50c in the short term to get their 20%?

I think the real question that needs answered if you are holding MPG shares is, "what do Bain intend to do with MPG? (and is it worth me waiting to find out?")

I'm not a holder, but if I was, I would probably use the Bain offer as an opportunity to sell-out due to the uncertainties and time frame before Bain can improve MPG's performance (if it can.)

In the meantime, hopefully your average holding cost or loss situation has improved.