Forum Archive Index - April 2003

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi DR,

> 
> The current Mcap of BIL appears to be about NZ$ 560m (200m pounds
> max). The current value of BILs 220m THO is at least 250m pounds. So
> the rest of BIL is worth nothing in the eyes of the market. 
>
>

That sounds about right.  But provided BIL can meet their interest 
repayments (and I have done some homework that says that they can) 
and sell Thistle at somewhere near its asset backing within the next 5-
8 years there will be some value left in BIL.  This is why IMHO, BIL 
International shares are worth a punt.

>
>
>BIL wants to get hold of THO cash.
> 
>

Yes they do, but there are other ways of getting it.   They could get 
Thistle to pay out a bumper special dividend for a start.   But the way 
BIL are going about it (a full takeover), BIL will get some of Thistles 
cash, but also its liabilities.   BIL do not need Thistle's liabilities.  

>
>
> A more practicable solution would be for BIL to give 1 THO for every 6
> BIL shares held by each shareholder to do as they must with. Any 
> surplus / deficit to be traded to balance. For small holdings(say less
> than 500 THO) could be given cash.
>
>

Fantastic idea.   I nominate you to stand for the board of BIL, DR!   

Unfortunately you won't get elected though.   Camerlin want to extract 
the maximum value from BIL having a strategic stake in Thistle.   
Distributing the shares pro-rata would destroy any strategic stake 
value.   When they do find a buyer for Thistle, then  what's the bet 
those BIL directors cash up millions of BIL share options (diluting the 
reward of the other shareholders) as a gratuitous self congratulatory 
gesture?

>
>
> Chances are the THO share price
> would rise once the Camerlin holding is released to a third party.
>
>

Actually I think the minorities might have to be taken out completely.  I 
think there is a rule that if you bid for a company on the LSX and get 
30% plus then you are required to go for 100%.     Can anyone 
conform that?

IIRC the original BIL bid for Mt Charlotte Hotels (as Thistle was then) 
was actually a mistake.  BIL made what seemed a silly low bid, not 
expecting to gain control of the company, yet ended up with it.

SNOOPY



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