"We don't buy and sell things," Mr Elphinstone said after attending National Hire's annual meeting yesterday. "We are investors for the long term and this investment's not been any different to any others we make.
"We've done the hard yards in this business so I suppose our preference here would have been to have nothing happen."
"You've got to get below 50 shareholders for it to go there and you've got to go below 100 shareholders before you don't have to report a reasonable amount of information publicly.
Imho (A2)the bid has 4 outcomes,with possibly all leading to a higher price.
1-SVW excepts that the takeover hasn't worked and sits with improved holding and possibly creep 3% of an even more illequid stock every 6mths.
2-SVW may extend the offer after 5/12/11 and go uncoditional with a fixed price eg. $3.75
3-SVW lodges a new bid in 3-4mths time to mop up the minorities with an improved price.
4-SVW deals by way of private treaty to the remainng minorities with a vastly improved price.
Less capex on COA may see more cash flow though to paying down the 1.8b debt and ultimately the bottom line in future years,meaning existing equipment may be working harder for longer than would normally be the case until the next round of capex spend to take advantage of the 1.4b in infrastructure projects recently brought forward.
The business is cyclical and very capital intensive,in future years its possible that with a large national infrastructure spend by state and federal govts that debt within COA maybe nearly matching or near sales revenue of just over 1b which will provide a number of opportunities that include future acquisitions/growth and yes.... a possible IPO/ change of ownership at some point in time.
The above doesn't constitute investment advice please read my disclaimer below and always consult a professional prior to making any investment decision if at all in doubt.
