"AMA, a bit like IOF, has gone nowhere for the past three years"...

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RussNLP

19 Posts.

28/05/18

19:35

Post #: 33342081
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Originally posted by alfredo9 ↑

Blackstone has lobbed another takeover bid for an Australian company, this time a $3bn bid to buy IOF, an REIT with a decent office portfolio. The IOF directors are supporting the bid which includes a 10% premium to the previous closing price. As a result, IOF jumped 13% today after going nowhere for the past couple of years.

AMA, a bit like IOF, has gone nowhere for the past three years. Without knowing the ins and outs of the bid to buy IOF, I cannot help but draw a negative comparison with the bid to buy AMA. The bid not only has no premium built in - it practically suggests a negative premium (call it a discount). The bid is conditional on a demerger and is set up to cherry pick the most lucrative part of AMA, with no regard for the other 15% of the business or a final dividend to shareholders for the past year's operations. AMA is devalued by the market as a result.

Blackstone is said to have $450bn worth of investments under management. Their $0.5bn bid for 85% of AMA represents one tenth of one percent of their current asset base. This lowball offer has knocked 20% off the AMA share price since March and I am totally at a loss to understand why the AMA directors would support it and recommend it to shareholders. In my opinion, they should be re-evaluating the deal and doing what the STO directors did in a similar situation, which is to recognize a grab for what it is and reject it.

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"AMA, a bit like IOF, has gone nowhere for the past three years" ---- i don't have the exact data at hand, but the market cap in june 15 was 214 mill, not the 509 its now floating around.. not sure if that matters. but thats not bad growth I would of thought.. . getting 86 cents PLUS some new ama shares with a reported value of say 30 cents is around money.. but there are some burrs for sure.

AMA Price at posting: 97.0¢ Sentiment: Hold Disclosure: Held
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(20min delay)
Last 6.1¢		Change -0.005(7.58%)		Mkt cap ! $286.9M

Open	High	Low	Value	Volume
6.6¢	6.6¢	6.1¢	$585.7K	9.331M

Buyers (Bids)

No.	Vol.	Price($)
5	799857	6.1¢

Sellers (Offers)

Price($)	Vol.	No.
6.2¢	63150	3

View Market Depth

No.	Vol.	Price($)
4	59761	1.050
3	2596	1.045
3	3726	1.040
2	2898	1.035
1	50000	1.030

Price($)	Vol.	No.
1.055	77023	3
1.060	53603	4
1.065	51503	3
1.070	2503	1
1.080	1158	1

Last trade - 14.35pm 26/11/2024 (20 minute delay)

AMA (ASX) Chart

"AMA, a bit like IOF, has gone nowhere for the past three years"...

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