Not great writing and no context or explanation of the charts but interesting.  Stated timing of some of the share transactions is also quite a bit off. 

Joe Lewis creeping up on AACo from his Bahamas base

Wylarah Station. Picture: AACo

• BRIDGET CARTER

  MERGERS & ACQUISITIONS EDITOR

  @BridgetCarterb

  

  SCOTT MURDOCH

  JOURNALIST

  @murdochsj

  
• 12:00AM DECEMBER 19, 2018
• 1 COMMENT

Bahamas-based billionaire Joe Lewis appears to be ramping up his interest in the Australian Agricultural Company, with shares purchased in recent days taking him closer to securing a controlling stake in one of the country’s oldest operating companies.

It is understood a buyer on Friday snapped up 10.6 million shares through investment bank UBS, with institutions said to be piling into the stock as it declines to low levels.

However, only days earlier, Mr Lewis had also purchased more shares and his stake in AACo now sits at 45 per cent after creeping up about 2 per cent.

Under the ASX creep provisions, a major shareholder who holds more than 20 per cent cannot acquire more than 3 per cent of the stock every six months without launching a takeover.

Analysts say Mr Lewis would be growing in frustration that the value of AACo continues to languish on the Australian listed market, and the next move is likely to be a privatisation of the business and a selldown of the properties.

The properties are held in a trust, which some believe curbs a strong share price performance.

Already, expressions of interest are being called for the AACo Northern Territory Abattoir that may sell for about half the roughly $120 million the company spent on the asset.

Also weary of an underperforming share price in the agricultural sector are the investors in GrainCorp, who are eager to see the company sold to Long-Term Asset Partners that recently bid $3.3 billion for the country’s largest grain handler.

Equities research house PUP Research says LTAP’s offer for GrainCorp looks “very generous” on a multiple of earnings basis.

However, the research house says in a note that given the cyclic nature of earnings, which are currently depressed, earnings-based valuations are never a good measure for GrainCorp and that asset multiples are more appropriate.

PUP Research says on this measure, the offer price also looks reasonable relative to history, but is not as full as the $12.20 a share Archer Daniels Midland bid for the business in 2012, with returns now lower than at that time.