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QUOTE (mercury @ Tuesday 15/02/05 01:02am)


Sorry I made an error in the first part of the calculations as I have taken the wrong figure of 65P($1.40) from previous postings. The actual return is 55P x exchange rate of $2.40 = $1.32


The correct calculations are as follow:




Return of capital:

52% x 0.55P x 2.40 exchange rate = $0.686

48% remainder x 1.80 = 0.864

Total = $1.55


The calculations assumed:

1) Current Exchange rate is applicable : 1 Pound = AU$2.40

2) You have elected for none of your remaining shares to be redeemed in the reduction of investor base.


So the current price of $1.55 has incorporated the possibility of Old Mutual bidding at $1.81 per remaining share. The rest of my comments remain as they are.




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In reply to: brunosch on Tuesday 15/02/05 01:48am


I have taken profit on all my HHG shares @ 1.55 today but I am still very keen as there is plenty of upside after the Life Services sale. Decided to take profit because:

1) Not happy with the handling of Life Services - accepting a lower offer that was increased marginally by the 'break fee'! Reminds me of AMP's sale of Stanbroke to the lower bidder who after settlement broke up Stanwell and sells at a huge profit!

2) 'Compulsory' acquisition of remaining shares (not divisible by 500) unless shareholders elected not to participate! It is okay for shareholdings less than 500 since that the exercise was to reduce small shareholders. BUT what possible justification is there for rounding larger shareholdings to the nearest 500s or 1000s?


Having said this, however I believe that it is just a matter of when bidders will surface for the pures insurance business!


I will be watching closely to renter.





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  • 2 weeks later...

Hi Mercury, Brunosch, and MasteR,

I sold out of HHG a few days ago at 1.57. Reading of the vote and the CEO comments made me feel that this was a good premium to what will be paid as compensation for the 52% of shares.

I still feel that the price will rocket on ex entitlement day, but I have to confirm that this is the date after which shares bought will not be taken on restructure. Please check with HHG as to what the date will be if you are interested in getting back in, as I would hate to be wrong and you lose.

I feel we could see a quick rise in price reflecting takeover potential.


Also keep an eye on TWR and AUW,recently split and presently undervalue for a TO, a symptom of the gloom on the market.

Good luck. Please do your own research.


Ciao, Bello.

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Hi guys,


I'm curious to know why they chose to buy back an arbitary number of shares at an arbitary price instead of just returning capital. Could it be related to outstanding options which would become more valuable if a large number of shares were bought back and cancelled cheaply, thus increasing the value of the remaining shares?


Huntleys have a valuation of $1.70 (without a takeover premium) with a recommendation of "accumulate upto $1.70" and "hold $1.70 to $2.00". The way I see it, if it is worth $1.70 and half the shares are bought back at around $1.30 then the remaining half should be worth about $2.10. Even more to a potential acquirer!


Please feel free to punch holes in my logic!



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In reply to: pkay on Friday 25/02/05 12:01pm

Can anyone please explain why HHG sold Life Services to LCIG for GBP1.07B? HHG rejected RLGÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s indicative offer of GBP1.15B to accept the lower LCIG offer that was increased by a miserly GBP 45 million. Life Services embedded value at 31 Dec 04 increased by 11% from 30 June 04.


The 2004 results show:

# Life Services operating profit up 6% to ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£86million (2003: ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£81million)

# Life ServicesÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢ traditional embedded value ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£1.46billion (30 June 2004: ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£1.31billion)


Roger Yates stated ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Life Services produced a relatively stable operating profit of ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£86million up 6% on the prior year (ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£81million) reflecting the release of prudential margins from the run-off of the closed books and the shareholderÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s share of bonuses on with-profits business.


The second half 2004 profit (ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£54million) was significantly above the first half of 2004

(ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£32million), which had been impacted by the strengthening of annuitant mortality

assumptions for NPIL and NPLL related business in that period.


Life Services capital increased during the year as a result of the sale by Pearl of its

remaining 24% interest in HHG Invest to HHG PLC and the ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£75 million consideration

arising from the disposal of HHGÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s interest in Virgin Money Group (Virgin Money)ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ.




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  • 5 months later...
  • 4 months later...

In reply to: bello on Thursday 25/08/05 11:36am

Hey Bello and any other followers if they are out there.


She has been popping up on my radar screen last 2 weeks.


My feeling, someone has been taking a position....very patiently....but buying non the less.


I still hold 15,000 odd left over from the consolidation earlier in the year....but a take over would be very welcomed by me at $2 plus....but might just slowly work its way there over the next month or so.


Anyone else watching....watching...watching...(wow...a bit of an echo in here!!!)




I hold.

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  • 6 months later...



Hi folks,


HGI ... a brief look at the month ahead and chart

shows, the recent gap at 1.97 is currently being

tested as support.


27072006 ... significant rally from here??


02082006 ... minor cycle


07082006 ... significant and positive move??


17082006 ... minor news??


21082006 ... minor and finance-related??



01-04092006 ... 2 positive cycles and major news/moves??

Spotlight on HGI here ... http://www.sharescene.com/html/emoticons/smile.gif


14092006 ... positive and finance-related cycle??


happy days






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  • 3 months later...

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