re: vrlpa does not have yield its a trade
sabretoothed:
You are 100% correct in your comments, Unlike others that own VRLPA and are hoping for a visit from the tooth fairy you see things the way they are. The Village people have effectively and legally screwed the VRLPA holder with the help of the ASIC.
I would add the following:
1. Control
The Kirby`s and Graham Burke have effective control of Village. As soon as they get 50.01% they have absolute control and can basically do what ever they want.
2. Dividends
I doubt that the common shareholders will ever see a dividend again either. Period. IF they pay a dividend on the common then the dividend provisions kick in on the prefs. IMO the Village people do not want to give anyone other than themselves one red cent if they don`t have to.
They have many other ways of pulling money out of the business than to pay a dividend. Bonuses, options, huge salaries.
For example:
The Village people currently own about 120 million shares of common which they control the company. If they paid a one cent dividend they would collect about $1.2 million. However that $1.2 million would cost them another $1.2 million to the other common holders and over $24 million to the preference holders. Thus to pay a one cent dividend they would get $1.2 million and the other holders over $25 million.
Paying a dividend would also increase the price of the preference shares which is not in their best interests.
Better to pay themselves a *bonus* for doing such a rotten job of running the company. Maybe another $24 million this coming year.
Now if that is not opression of minority shareholders, then I don`t know what it is...
3. Takeover
Anyone that is even thinking of a Village being taken over has rocks in their heads. The word here is EGO spelled in capital letters. The VILLAGE people want to be famous and known to the entire world as MOVIE PRODUCERS. The ONES that brought MATRIX to the WORLD for ALL to see. Remember they are the CHOSEN ONES. That is why they get $24 million in compensation and the shareholders get a big fat zero.
With a holding of a little over $150 million, they control a company with about $1 billion in sales. They effectively control a stock market cap of over $1.1 billion.
Common: 240 times $1.25 = $300 million Pref: 240 times $0.80 = $192 million Austereo 420 times $1.47 = $617 million
Total: $1.1 billion +/~
Minorities have no rights and no alternative than to sell their shares if they do not like what the Village people are doing.
Whay would they sell out for a couple of hundred million when they have almost TOTAL control??? They will not.
4. Austrereo
Village owns between 57% and 60% of Austereo, which if you read the Financial review today, is supposed to be a hot takeover prospect. The head Village person at Austrereo says it is not for sale.
The value to Village of AEO at the current price of $1.47 (Last year it was almost $1.00 higher - gee I wonder why it fell .......) is about $370 million or about 75% of the total market cap of Village common and prefs.
The NTA of the company are $1.89 per share ~ amazing isn`t it? A media company selling under book value. I can not think of many of those in Australia let alone the enire world! A media company selling at a 22% discount to its book value!!!! Amazing what the influence of the Village people can do to a company!
IF the company were sold and I am pretty sure that if someone dangled a half billion dollars under the Vilage people`s nose they would take it.
That would allow the Village people all the money they need for MOVIE PRODUCTION for the next several years. Shareholders would see none of it though.
VRL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
