Founded by Max Farndale 1947 - 2018
Dec 14, 2017 - Rubicon's proposal to sell a 45 percent stake in local Clearwood manufacturing business falls within the independent adviser's valuation range. The forestry biotech's shareholders will vote on the transaction at a special meeting in Christchurch on Jan. 12 on whether to approve the sale of its interest in Tenon Clearwood Ltd Partnership for US$14.2 million, which is the cost of its investment in the company in April, plus its share of the reduction in the company's net debt since then. That is estimated to be worth a combined US$15.3 million. The buyers include affiliates of Rubicon's two biggest shareholders, Knott Partners and Libra Fund LP.
Rubicon's independent directors have recommended investors take the deal, with Steve Kasnet saying the deal fell within Grant Samuel's independent valuation range of the stake, the exit would provide funds to make two looming payments on its ArborGen business, and simplify the company's structure providing the opportunity to cut costs.
"We believe that these three factors – the removal of any overhang in the stock price relating to uncertainty as to the funding source of the deferred ArborGen acquisition and subordinated debt payments, simplifying Rubicon to be a pure-play on the ArborGen business, and the achievement of cost savings, will all be beneficial to building positive momentum in the RBC share price," Kasnet said in a letter to shareholders. "The sale will then make Rubicon a ‘pure-play’ for investors on the ArborGen business upside, and with Rubicon’s financials moving forward then only being ArborGen-based, investors will have greater transparency of ArborGen’s financial results."
Grant Samuel valued Clearwood at between US$51.3 million and US$61.5 million, with Rubicon's stake worth between US$13.6 million and US$18.2 million.
"In Grant Samuel’s opinion, based on the analysis of the merits outlined above, the terms of the proposed transaction are fair and reasonable to the shareholders of Rubicon not associated with Knott and Libra," the report said.
If the deal doesn't go ahead, Grant Samuel anticipates Clearwood will need more capital to reduce its level of debt.
Grant Samuel has valued the business twice in the past 12 months in relation to the sale of former NZX-listed Tenon's business sales. The most recent of those was earlier this year, ending an 18-month process run by an investment bank.
Kasnet said because the offer was the same price as the earlier transaction, the independent directors chose not to run another sales process as there was no benefit to shareholders.
Rubicon shares were unchanged at 19.5 cents, and have dropped 11 percent so far this year.
Source: Sharechat || December 14, 2017 |||
Dec 14, 2017 - The New Zealand Productivity Commission today released its draft report - Measuring and improving state sector productivity. “The state sector spends more than $40 billion every year on public services. Measuring productivity is essential for knowing if the money is being well spent.” Says Chair of the Productivity Commission, Mr. Murray Sherwin.
“Constantly improving productivity across an economy is the essential source of improved incomes and wellbeing. While most businesses have a pretty good idea of their productivity performance, the public sector is much less likely to focus on its productivity. In part, that is because it can be harder in the public sector to measure what is being produced.”
“The Commission has worked with government agencies to develop a number of case studies. These illustrate the methodological issues encountered when measuring the productivity of public services. We found that much of the data required to measure productivity already exists. It can be dispersed and not readily accessible but those matters can and should be fixed.”
The draft report is available online and seeks stakeholder views on lifting state sector productivity.
“Measuring productivity is not an end in itself. Rather it’s a starting point for discussing better ways of doing things. Stimulating innovation in the state sector is key to improving productivity. There are many examples of local innovation but they don’t tend to spread very far or fast. This needs to change if we want a more efficient and effective state sector.”
The inquiry terms of reference asked the Commission to provide guidance on how to measure productivity in “core” public services (health, education, justice, social support) and provide advice on developing the systems, culture and capability to measure and improve state sector productivity.
Submissions on the draft report are due 1 March 2018.
| A Productivity Commission release || December 14, 2017 |||
Dec 14, 2017 - Alliance Group is exceeding its target for achieving gains from its business strategy and forging ahead with plans to further lift the co-operative’s performance, farmer shareholders were told at the co-operative’s Annual Meeting in Te Anau today. Murray Taggart, chair of Alliance Group, said the co-operative’s ongoing programme of strategy projects captured $48.8 million in value this year.“The value captured from our strategy projects is a major factor driving our ability to offer competitive farm gate pricing and invest in the company.“Alliance’s improved profitability means we will be distributing $11.4 million in pool payments to our farmers’ bank accounts this week“Once again, this demonstrates the fundamental benefit of a co-operative, where every dollar we make is either reinvested for the future or returned to farmers.”The company experienced a more positive trading environment during 2017, said Mr Taggart.“Although market volatility and weather events remain a constant threat, the level of supply and demand for our farmers’ produce look set to underpin strong pricing, particularly for sheepmeat and venison.“However, we are acutely aware of the impact the drier conditions are having on our farmers’ businesses and we’ve responded by bringing on additional processing capacity across our plant network.”Alliance Group Chief Executive David Surveyor said the co-operative is moving steadily in the right direction, but the company would not be resting on its laurels. “We have successfully navigated the first phase of transforming the business and we are now focused on stage two to ensure this transformation is sustainable.“We recognise there is a lot of hard work ahead of us to lift the performance of the co-operative to the level our shareholders expect. The good news is there are a number of exciting and innovative initiatives in the pipeline.”The key priorities next year would be growing the value add part of the business and capturing more value from the co-operative’s global markets, said Mr Surveyor.Alliance Group has already invested in developing a food service business in the UK and purchased the Goldkiwi Asia business in Singapore, now known as Alliance Asia.“Strengthening Alliance’s in-market presence is vital if we are to capture greater value and these investments are only the first steps down this path.”Alliance is also exploring opportunities to capture more revenue from co-products.“Our $800,000 investment in a new blood processing facility at our Mataura plant is just the start. We have a number of other exciting value capture projects underway.”The pool distribution payments will be paid into farmer shareholder’s accounts on Friday 15 December. The distribution will be as follows: Lambs: $1.80/headSheep: $1.00/headCattle: $10.00/headDeer: $7.50/headCalves: $1.00/head Directors Dawn Sangster and Russell Drummond were re-appointed to the Board unopposed in October.
| An alliance Group release || December 14, 2017 |||
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242
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