ARV - Arvida Group

[Poet]

I wouldn't think $1.30 would do it, but if that offer does come, even if unsuccessful it should light a fire under the listed RVs.

ARV still in halt but OCA now up 4.2% on speculation that there is a buyer out there looking for an RV to buy

[winner (n)]

And ARV share price big move up

Maybe made the story up to stop farfalle of share price.

Weird share price in 120s about the time of previous appoach

Or am I a cynic

[Shareguy]

ARV still in halt but OCA now up 4.2% on speculation that there is a buyer out there looking for an RV to buy

$1.70 would of been attractive I imagine for a lot of us. Interesting. 

[Basil]

Just like Steel and Tube was worth more than $1.90 is the derisory way I view directors dismissing this offer out of hand.

https://www.marketscreener.com/quote/stock/ARVIDA-GROUP-LIMITED-20708484/consensus/
Professional analysts have a 12 month price target of $1.44 average, and yet the directors think they know best despite the share price being in the toilet.

Delusional is the right word for it, just like the board of Steel and Tube were delusional.  Who are these Muppets acting for, themselves or shareholders?   Crickey, they might even have got $1.90 if they had of haggled with them and everyone would have got a get out of jail free card from this very average company.

[winner (n)]

Just like Steel and Tube was worth more than $1.90 is the derisory way I view directors dismissing this offer out of hand.

https://www.marketscreener.com/quote/stock/ARVIDA-GROUP-LIMITED-20708484/consensus/
Professional analysts have a 12 month price target of $1.44 average, and yet the directors think they know best despite the share price being in the toilet.

Delusional is the right word for it, just like the board of Steel and Tube were delusional.  Who are these Muppets acting for, themselves or shareholders?   Crickey, they might even have got $1.90 if they had of haggled with them and everyone would have got a get out of jail free card from this very average company.

Takeover offers all ready to be rejected seem to follow that Susan Paterson around

STU ERD ......."..

[lorraina]

Next AGM should be eventful.
Current seller wants $1.04.

[winner (n)]

An offshore infrastructure fund eh. ...probably that outfit who took over MET and wanting to them really big

[Mos]

$1.70 would of been attractive I imagine for a lot of us. Interesting.

Agree. Happy to sell into takeover at $1.70 now or wait for long term expected returns. If the would be acquirer can make it unconditional and put it to shareholders, I think they would have a decent chance of succeeding.

[LoungeLizard]

Just like Steel and Tube was worth more than $1.90 is the derisory way I view directors dismissing this offer out of hand.

https://www.marketscreener.com/quote/stock/ARVIDA-GROUP-LIMITED-20708484/consensus/
Professional analysts have a 12 month price target of $1.44 average, and yet the directors think they know best despite the share price being in the toilet.

Delusional is the right word for it, just like the board of Steel and Tube were delusional.  Who are these Muppets acting for, themselves or shareholders?  Crickey, they might even have got $1.90 if they had of haggled with them and everyone would have got a get out of jail free card from this very average company.

Yep, same with SKY who the Directors saw fit to reject a rumoured bid of $3.70 (something like a 50% premium on the sp at that time). Not only that but the SKY Board didn't even extend the courtesy to shareholders and tell them what the value of the bid was. And, post rejection of the bid, the Chairman and other members bought more shares, with the knowledge of the bid price that they refuse to share with shareholders. Some Boards - STU, ARV, SKT - clearly do NOT see shareholders as being their primary responsibly and deserve all the criticism they get.

[Mos]

Yep, same with SKY who the Directors saw fit to reject a rumoured bid of $3.70 (something like a 50% premium on the sp at that time). Not only that but the SKY Board didn't even extend the courtesy to shareholders and tell them what the value of the bid was. And, post rejection of the bid, the Chairman and other members bought more shares, with the knowledge of the bid price that they refuse to share with shareholders. Some Boards - STU, ARV, SKT - clearly do NOT see shareholders as being their primary responsibly and deserve all the criticism they get.

Directors fee preservation? The old turkeys don't vote for Christmas truism?

[Basil]

Yep, same with SKY who the Directors saw fit to reject a rumoured bid of $3.70 (something like a 50% premium on the sp at that time). Not only that but the SKY Board didn't even extend the courtesy to shareholders and tell them what the value of the bid was. And, post rejection of the bid, the Chairman and other members bought more shares, with the knowledge of the bid price that they refuse to share with shareholders. Some Boards - STU, ARV, SKT - clearly do NOT see shareholders as being their primary responsibly and deserve all the criticism they get.

I'd be furious if I was a shareholder.   

Some good questions for shareholders at the next annual meeting.

1. Who are you acting for, yourselves or shareholders ?
2. How do you explain not even putting a $1.70 offer to the vote when that's a vast premium to the market price ?
3. Did you commission a professional valuation of the company from a leading investment bank in coming to a decision to reject the offer and if so who and why haven;t you released that report to shareholders for them to decide?
4. Do you think you know better than N.Z. best analysts who have a consensus view of a target price of $1.44 and if so, what are your professional qualifications valuing companies compared to theirs?

I think if this was the US these Muppets who are clearly acting in their own best interests not shareholders' interests, might find themselves in very hot legal water.  Class action?  I find it staggering this offer wasn't at least put to shareholders for them to decide.

[Mos]

I'd be furious if I was a shareholder.   

Some good questions for shareholders at the next annual meeting.

1. Who are you acting for, yourselves or shareholders ?
2. How do you explain not even putting a $1.70 offer to the vote when that's a vast premium to the market price ?
3. Did you commission a professional valuation of the company from a leading investment bank in coming to a decision to reject the offer and if so who and why haven;t you released that report to shareholders for them to decide?
4. Do you think you know better than N.Z. best analysts who have a consensus view of a target price of $1.44 and if so, what are your professional qualifications valuing companies compared to theirs?

I think if this was the US these Muppets who are clearly acting in their own best interests not shareholders' interests, might find themselves in very hot legal water.  Class action?  I find it staggering this offer wasn't at least put to shareholders for them to decide.

Agree, but reading between the lines, maybe too conditional? If it was unconditional they could put the offer straight to shareholders and take their chances with independent valuers report.

[Basil]

Agree, but reading between the lines, maybe too conditional? If it was unconditional they could put the offer straight to shareholders and take their chances with independent valuers report.

I tend to think you're probably right, but the MET takeover had a vast number of conditions too and still eventually transacted, albeit at a lower price than was originally proposed.

[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.

[Shareguy]

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.

Thanks for posting. Interest rates look to be coming down as is inflation. The Dows up and even my broker has been busy buying for himself. Some say NZ and Australia have small caps on sale.

Rakon now Arvida who's next.....