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MPH, MAGNA PACIFIC HOLDINGS LIMITED
twotoneh
post Posted: Jul 25 2007, 01:35 PM
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Subbii and all other MPH posters,

We'll finally get our hands on those juicy DES shares! cool.gif

The announcement we've all been waiting for:-
Ceasing to be a substantial holder

Lionsgate has sold most if not all of their holding. Presumably it was mostly Prime taking up the bulk of it, as it released in an announcement a couple of days ago.

So, the lion has put its tail between its legs, let out a timid whimper, and left the jungle. Good riddance!

The only sad thing is that they actually made quite a nice profit out of the whole affair, even accounting for all of their (annoying) legals. thumbdown.gif

Anyhow, to focus on the positive, destra gets the jewel in the crown and the cowardly lion is the loser ... wouldn't have it any other way!

More to the point, us MPH shareholders get the real jewel in the crown, which is the DES scrip. Great company, it's going to make the money the MPH shareholders were hoping for. There are many predictions of $1 or over, and they seem to just build and build ...

It's been a fascinating drama to watch ... all good fun, with the happy ending.

I'm sending out the proxy vote & scrip+cash forms out today (and faxing it, just in case!).

Cheers all.

 
subbii
post Posted: Jul 16 2007, 11:55 PM
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In reply to: twotoneh on Monday 16/07/07 02:35pm


Hi twotoneh,

This is getting very messy isn't it... I'm with you, I just don't get the DES purchase of 19.9%. The only explanation that is logical is that they are trying to send a message to Lionsgate; I guess they are saying "we have 19.9% plus we are willing to pay a higher price and now you can't get to 100% so just accept our offer and go away". It's certainly a very aggressive move on the part of DES.
I would have thought that DES could have waited until the scheme meeting in the hope that it would be approved, of which there was a good chance. Maybe DES suspects that Lionsgate was on the verge of making a new offer, after all they were buying shares on market at around 45c, and they are just making a preemptive move...
The situation now is very uncertain, if Lionsgate votes against the scheme then it would need almost every other shareholder to vote for the scheme to see it go through, but as you point out in your post, retail participation is expected to be low, maybe DES will take the initiative and contact all MPH holders to explain the situation and the importance of voting.
If the scheme does fail, then where does that leave us? Any new offer from DES would need to be above 55c by law. Any new offer from Lionsgate would have to be at least 45c. So in the short term, the price of MPH should hold up if the scheme fails. But sadly, it would mean that I would miss out on the DES shares that I've been hoping to get. The worst result would be an ongoing stalemate between the two, an outcome that would see many of the recent buyers sell out and which could weigh on the MPH price. My opinion is that if the scheme fails, then DES will make a more traditional takeover and try to get at least 50% of MPH, which would give them control of the company.

I am just wildly speculating anyway. This whole drama has taken so many twists and turns that it is impossible to predict the outcome, and I suspect there is much going on behind the scenes that we are not being told about. Lionsgate are proving to be petulant, stubborn cheapskates, the king of personality traits that lead me to believe they won't succumb graciously thumbdown.gif

Still can't complain too much, MPH was 45C last week... tongue.gif

 
twotoneh
post Posted: Jul 16 2007, 02:35 PM
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In reply to: twotoneh on Friday 13/07/07 03:01pm

Subbii,

I may have been a bit premature predicting the imminent addition of more DES stock to the portfolio ... it appears it's a bit more complicated than that (as appropriate for this soap opera). The critical bit is the 'Destra does not propose to vote the shares acquired today' part.

I've had a dialog with someone from another site, that has gone like this:-

>>>>>>>>>>>>>>>>>>

Subject: weekend afr
==============

(other user)
========
Interesting snippet in weekend AFR, suggesting that there is still a bit to play in this deal.

DES now have 19.9%, Lionsgate have 14.2%.

It seems that if Lionsgate vote "no", then the scheme of arrangement will fail (since DES's 19.9% is excluded, and retail participation will probably be low ... especially if they buy a few more shares).

Will be interesting to see if Lionsgate did buy more on Friday afternoon ... if they did, then the floor price for any subsequent bid is 55c.

My reply
======
I don't get it ...

If the DES 19.9% purchase puts the scheme of arrangement vote at risk, why do it?

DES appeared to be in the box seat, especially after the Prime purchase to water Lionsgate down (i.e. officially to inject funds into MPH!), why would DES then make a move like this, at a 5c premium to what the shares where effectively worth, it if puts the deal in jeopardy?

(other user)
========
I dont believe it is as simple as "putting the scheme at risk".

Hedge funds sold to DES - these guys may have been angling for a higher bid (from Lionsgate) as they would probably not be holders of DES scrip (also DES illiquid and difficult to short).

DES now has a blocking stake, so Lionsgate will find it hard to bid, unless they are satisifed with control but not ownership...


<<<<<<<<<<<<<<<<<<

The drama continues! It does seem that DES is going to be the eventual winner, but I can't really predict how it will play out. Anyhow, it makes for interesting viewing and it isn't exactly hurting the MPH (or DES) share price at the moment (yes, it's come down from Friday's high, but it is still well up there).

I'd be interested to hear your thoughts (and anybody else's, if they'd like to join in) ... unsure.gif

Cheers.

 
twotoneh
post Posted: Jul 13 2007, 03:01 PM
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In reply to: subbii on Friday 13/07/07 02:03pm

The announcement:-

QUOTE
destra Acquires 19.9% of Magna Pacific

13 July, 2007; Destra Corporation Limited (ASX:DES), Australia’s leading independent
digital media company, today announced that it has acquired 19.9% of Magna Pacific
(Holdings) Ltd (ASX:MPH) at an average price of $0.5482c.
Destra does not propose to vote the shares acquired today at the Scheme of
Arrangement meeting scheduled for Monday, July 30, 2007.


So there you have it ... is it too early to start singing 'Ding-dong! The Witch is Dead'?!! tongue.gif

Cheers (and hello to a new chunk of Destra shares in the portfolio cool.gif)

 
subbii
post Posted: Jul 13 2007, 02:03 PM
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In reply to: twotoneh on Friday 13/07/07 10:40am

WOW!! what a day!!

Interesting that around 20% of MPH traded today. Someone wanted them very badly.

Don't know what to make of it, DES in a trading halt also, very strange.

Who can it be, DES, Lionsgate, a new player?????

Very exciting. Finally good to see our patience paying off twotoneh...

Looking forward to tomorrow lmaosmiley.gif

 
twotoneh
post Posted: Jul 13 2007, 10:40 AM
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Something big is about to happen!

The MPH SP has shot up to 55c lmaosmiley.gif (7.5c increase on an already good price from yesterday), DES has been up to 40c from 36c ...

I can't wait for this next chapter to unfold. cool.gif

Cheers.

 


subbii
post Posted: Jul 4 2007, 11:56 AM
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In reply to: twotoneh on Wednesday 04/07/07 01:08am

Hi tt,

You're right, it is a friendly player. I apologise to the MPH directors for doubting their intentions biggrin.gif

Nice to see DES move up on the news as well. Now if only Lionsgate would bugger off...



 
twotoneh
post Posted: Jul 4 2007, 01:08 AM
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Subbii,

The 'Black Knight' strikes again! ... TOV Media Rel: Panel Receives Application

For a company that could easliy have made a higher bid but hasn't, and should count themselves lucky they conned Macquarie Bank into selling them a large chunk of MPH for what ended up being peanuts, they sure make a lot of noise! thumbdown.gif

Anyhow, the good news is that the latest play has nothing to do with Lionsgate (probably against them, if anything). Who could it be ... Destra themselves going for some pre-voting MPH action, or another related (presumably friendly) player?

It's all good drama ... a bit of fun to watch, as long as we get the happy ending. Let's hope so.

Cheers.

 
subbii
post Posted: Jul 2 2007, 04:27 PM
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In reply to: twotoneh on Monday 02/07/07 03:50pm

Hi twotoneh,

I got the scheme booklet in the mail this morning and can confirm that it will make a good doorstop once this is all over biggrin.gif

As you say, it seems that MPH is very keen on the deal, all directors intend to accept, it is within the independent experts range, etc etc...

I hope that I am being too cynical and that the placement is of great benefit to MPH and that it's an opportunity so good that it is worth upsetting Destra. If thats the case, then DES should be more than happy to pay the extra funds and continue with the deal; which in the long run will be good for all DES shareholders. It is interesting that DES was up today...

We'll know a lot more tomorrow...


 
twotoneh
post Posted: Jul 2 2007, 03:50 PM
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QUOTE (subbii @ Monday 02/07/07 03:36pm)

Subbii,

Right from the start of the destra offer, MPH seems to have been pretty keen on the deal, if the announcements can be believed.

I don't know if you've had a look at the electronic version of the 'ASIC Registration of Explanatory Memorandum' they're going to be sending out, but it's 253 pages worth! It seems that a lot of time and energy has been spent trying to get the deal to proceed, I would be surprised if they were now trying to ruin it ... but then again, maybe I'm not cynical enough.

I am a little concerned as well though ... unsure.gif

Cheers.

 
 


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