Aveo Can Unlock 70% Upside by Addressing Its Unique Ownership Structure, According to Metrica, page-52

To me there is a credibility issue , (look at the discount to NAV) what AOG and Mulpha do is looked often as not in the best interest of retail shareholders , even if AOG does a buy back it still has a credibility issue .

However if Mulpha sold or swapped a proportion of its float in AOG with the likes of Ryman or Summerset even with a sweetener of performance options with say a 2 year escrow period several positives would be signalled to the market :
1) An investor with enhanced industry experience would be coming on board with the probability of a board position to impart that knowledge .
2) The share registry would be more balanced
3) The loan to value ratios would not be impacted as with a buy back as its a swap /buy in .
4) The negative connotations associated with the AOG/Mulpha relationship would be reduced
5) The discount to NAV per share should reduce with positive implications for raising capital and reducing WACC due to higher equity levels
6) A new major shareholder like Ryman would be able to improve its NAV to Capitalised value given from memory its currently trading at 4 times NAV while AOG is at a 50% discount to capitalised value .
7) There could be potential future synergies between the likes of Ryman and AOG for industrial supplies , allocation of resources , expansion into China of Ryman .


The major negative is a further short term drop in share price due to this being looked at as a discounted placement in another name , due to performance options , but an inducement is needed to get the ball rolling .

However I feel the positives outweigh the negative which would result in the share price rising .

So essentially AOG could facilitate by buying off market Mulpha shares then redistributing the shares to the likes of Ryman so that the buyback is not impacting AOGs available cash and use an escrow period to bed in the new major shareholder and impart their industrial experience