imho $3.00 or $3.60 is a low Ball offer by SVW/KS.
Coates which has a market dominate position has in recent times purchased Monash Hire, and Tru Blu Hire with ACCC approval 13/9 that was not reported to market,and Coates is going gangbusters atm,is worth at least $3.00 to $4.00
About $1.00 out of very $3.00 in hire goes to Coates that is set to explode as the infrastructure spend picks up and some hire market participants consolidate.
Boom Sherrin equipment hire with about 7% market share will over time either exit the market or lose market share as they stop purchasing new equipment to replace run down fully depreciated items.
SRH & MAH have their own problems and about the only one with its house in order is EHL but the party will stop for them once the boom fades away.
Essentially NHR stakeholders are not getting compensated for their stake in NHR which includes the 'company transforming' deal of Sykes Group and Rotair.
The bid by SVW is all about picking up Coates on the cheap as either a forerunner for a relist on the ASX so KKR can choose to sell down and exit the Australian hire market or a listing of Westrac spun out of SVW.
NHR Price at posting:
$3.14 Sentiment: Hold Disclosure: Not Held
