Easy pickings

The first bit of news is that AEP has been able to mop up enough shares to get to 63.68% of PGC's shares. It has been explained to us that it is also now time to hatch that which has been counted or put another way, pay for those shares. It has always intrigued us that never was funding mentioned or even asked about by investors who are handing over their shares. Although one can put it down to pure speculation the analysis that we've seen suggests that with $150m here and $150m there, soon you are talking real money. With a business structure as convoluted as this and debt behind debt, like this,  it might not be so simple to fork out the twenty odd million. What seems like a pittance in the world of Kerr/Darby/Baker Street might turn out to be what breaks the camel's back.



The theory is that Baker Street does not have more funds to add and the evidence is in the terms of their deal. Kerr/Darby is underwater on most if not all of their property investments as a general reading of news around the property would indicate; start here. and here and here. It is possible that recent deals by Torchlight, like this one, and this one is a way to maintain control over the mortgages and to hopefully get more assets in the process to back them up. PGC is critical in this regard and if the theory that Kerr and Darby might be running short on cash holds any water then would be-funders would want to see a guarantee AEP can get control over the assets of PGC which is supposed to support yet even more funding. Heartland shares could be sold, but then the control over the real $1.6Bn prize is slipping. There are still a few shareholders that stands between the top of Everest and AEP, which might prove to more expensive and tougher to shake than the 63.38%

Those were the easy pickings for AEP.

Irvine has left the house and follows the resignation by Mogridge from Heartland and Torchlight. Not a moment to soon, some say and now Mogridge is the next one to go. It is apparent he is neither independent and will go to ludicrous lengths to push the AEP agenda. We have asked around and to date nobody has been able to inform us of a single instance where a director of a company advised his shareholders to sell shares in the hope of buying it back a few weeks later at a cheaper price. We are surprised that none of the established protectors of corporate integrity in New Zealand has spoken out about this..The Press, Shareholder Ass, Stock Exchange..cmon people, say something!

Even so, for the minority shareholders the easy pickings are gone. Mogridge's time has run out and according to some he is already heading for the exits, which we frankly don't believe. Even so, the easy pickings are gone.

Cheerio,
jA

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