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ALZ - Australand Property Group

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Re: ALZ - Australand Property Stapled

nulla nulla said:
Be happy , if 6% on monday represents $5k profit then you probably took $5k profit in the 6% rise on friday. Well done. Plus of course all the divs you accumulated while holding.
Click to expand...

Only held it for 2 days so no dividends to speak of.

Of course it's nice to take profit but I spent most of yesterday's morning looking at the profit that I missed out on... and probably missed many more trading opportunities as a result.

Anyway, it's been over 24 hrs so I think it's time to let it go.
 
Re: ALZ - Australand Property Stapled

skc said:
Of course it's nice to take profit but I spent most of yesterday's morning looking at the profit that I missed out on... and probably missed many more trading opportunities as a result.
Click to expand...


Glad I'm not the only one who does this, MAD still annoys me to this day.
 
Re: ALZ - Australand Property Stapled

What happened to GPT and MGRs interest in ALZ?
Is ALZ still a takeover target?

I would like to short ALZ but it seems a bit risky as another bid could be just around the corner...
 
Re: ALZ - Australand Property Stapled

It might be risky shorting ALZ. GPT is still there in talks with one of the major shareholders and has raised a bit of capital recently from the U.S. I suspect the potential takeover may be holding the ALZ share price up through recent volitility among the rest of the A-REIT's. As always do your own research and good luck.
 
Re: ALZ - Australand Property Stapled

Australand is in a trading halt atm and released news that its major shareholder is selling 20% of its holdings in an overnight transaction. What are the ramifications of this, if any? and how is this likely to effect the stock price when it re-opens?
 
Re: ALZ - Australand Property Stapled

From todays ASX announcement...

"CapitaLand Limited (“CapitaLand”) wishes to announce that its wholly-owned
subsidiaries, Austvale Holdings Ltd and Ausprop Holdings Limited (collectively, the
“Sellers”), have today entered into a placement agreement (the “Placement
Agreement”) with Citigroup Global Markets Australia Pty Limited (“Citi”) appointing
Citi as the sole bookrunner and underwriter for the sale of stapled securities in
Australand Property Group (“Australand”) in a secondary placement exercise
(“Secondary Placement”). CapitaLand, through the Sellers, has an interest of
approximately 59.1% (comprising 341,885,375 stapled securities) in Australand.
2. DETAILS OF THE SECONDARY PLACEMENT
By the Placement Agreement, the Sellers agreed to sell an aggregate of 115.66
million stapled securities on issue (the “Securities”) in Australand and Citi has
underwritten the sale through an overnight accelerated book build process. The
Securities represent approximately 20% of total stapled securities issued by
Australand.
Allocation and pricing of the Securities is expected to take place on 21 November
2013. An announcement of the terms of the Secondary Placement will be made by
CapitaLand following allocation and agreement on the pricing of the Securities.
3. FINANCIAL EFFECTS OF THE SECONDARY PLACEMENT
The financial effects of the Secondary Placement will depend on the pricing of the
accelerated book build process and will be disclosed in the announcement to be
issued by CapitaLand following allocation of the Securities.
4. INTERESTS OF DIRECTORS AND CONTROLLING SHAREHOLDERS
None of the Directors and the controlling shareholder of CapitaLand has any
interest, direct or indirect, in the Secondary Placement save for their interests in
Australand through CapitaLand."

Looks like Capitaland subsidiaries are the holders of the Australand shares and are selling off 20% of their holding (or 20% of issued shares in Australand?). Probably getting a better price than that offered by GPT last December as well. The Australand share price finished down 3.35% today.
 
Re: ALZ - Australand Property Stapled

Does anyone have any insights as to what this might mean for ALZ? Is it a price sensitive announcement or just business as usual. Does it make it a takeover target? etc. etc.
 
Re: ALZ - Australand Property Stapled

edman79 said:
Does anyone have any insights as to what this might mean for ALZ? Is it a price sensitive announcement or just business as usual. Does it make it a takeover target? etc. etc.
Click to expand...

Definitely price sensitive. Looks like it will be done at between $3.685 and $3.75.

Often the market reacts negatively to a major shareholder selling out at below last traded price (as required since it is usually a massive stake). So the share price can move quickly below the price of the block trade.

In this case however, Capitaland has been a rumoured seller for quite sometime, while ALZ just came out with a trading update of sorts, you'd think the market is as informed as it can be.

Having said that, Capitaland is still holding a large stake and the "overhang" thought could weigh on the stock for a while yet.

I don't think it changes much in relation to a takeover, however. Capitaland would be a willing selling at the right price - either through block trade or a third party acquirer...

Let me guess - you are long in a pairs trade?
 
Re: ALZ - Australand Property Stapled



Ha Ha good guess SKC but not quite. Im short ALZ. This might not be the right thread to discuss a pairs trade but what would you do if you were short ALZ and long FDC for example (should I post in the pairs thread?)
 
Re: ALZ - Australand Property Stapled

edman79 said:
Ha Ha good guess SKC but not quite. Im short ALZ. This might not be the right thread to discuss a pairs trade but what would you do if you were short ALZ and long FDC for example (should I post in the pairs thread?)
Click to expand...

I did have a signal to go short ALZ last week but elected not to take it because of the recent corporate activities in the sector.

Depending on the final sale price, the news isn't decidingly good or bad. So play it cool and react only to an over-reaction.

However, if I am short I'd be more comfortable than if I was long. If ALZ looks to open 3-4% lower than I would probably cover at least half. There is a support line right around current level so if broken it could trigger some stops and create a long downward spike intraday, which I'd try to catch with the remaining half.

But it's all just a plan and it ould change depending on the news coming out of the block trade.
 
Re: ALZ - Australand Property Stapled


Block trade went thru at $3.685 or low end of range... opened at $3.65, printed a low of $3.55 and now seems to have settled at $3.60. A pretty good short trade outcome to get good cover in this range.
 
Re: ALZ - Australand Property Stapled

Ok so Stockland come out with a $4.35 bid for ALZ. After a halt ALZ opens down 0.01 at $4.25 on no volume then is promptly sold off to $4.21.... Was the market expecting a better offer from Stockland? I'm confused.
 
Re: ALZ - Australand Property Stapled

edman79 said:
Ok so Stockland come out with a $4.35 bid for ALZ. After a halt ALZ opens down 0.01 at $4.25 on no volume then is promptly sold off to $4.21.... Was the market expecting a better offer from Stockland? I'm confused.
Click to expand...

I think people are concerned that ALZ won't come to the party and SGP has declared this as the final bid. So they are willing to walk away if this price gets knocked back.
 
Re: ALZ - Australand Property Stapled

kefa said:
I think people are concerned that ALZ won't come to the party and SGP has declared this as the final bid. So they are willing to walk away if this price gets knocked back.
Click to expand...

Yep market thinks the TO is a no go and selling accordingly, same with SAI the other day.
 
Re: ALZ - Australand Property Stapled

I wouldn't be surprised if Stockland was in talks with the institutional fund managers that picked up CapitaLand's Australand Holdings back in November 2013 and recently when CapitaLand unloaded the remainder of their Australand holdings.
If those institutional investors were of a mind to support the offer from Stockland, their combined share holding would probably be enough to exert pressure on the Australand Board to open the books for due diligence.
 
Re: ALZ - Australand Property Stapled

sonofna... I sold at $3.82 fully aware of another potential takeover after Mirvac's [?]
 
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