CNP - Centro Properties Group

[ROE]

Ok so CNP has just gone into a trading halt till the 15th..

This is quite possibly the next chapter, the asset value of CNP is around $3.50 per share so I am hoping for some serious premium to the current price for any offer or strategic break up..

The only downer for me was the nasty sell off yesterday for no apparent reason other than the actions of a leaky market??

Who else is on this punt???

fortune favours the brave!

benwex

No one knows the exact asset value of this stock since the whole debt thing goes up in the air.... that valuation is based on some crazy premium, try value it again today against the debt you wont get any where near that amount.

this is not a brave move, it's a gambling move since no one knows the valuation of the stock

 

[doctorj]

Ahhh the old trading halt over the weekend trick. For those that don't know, you can only be halted for 3 days without going into suspension (which is a bad thing) so taking a halt over a weekend gives you 2 extra days to sort your stuff out.

My money is on a T/O offer or an offer for some of their better assets.

 

[Fed23]

I would hate to be in this stituation. I wouldnt be able to sleep until the 15th.

I do hope good news comes out but I dont think you would get anything more than $2 a share at it's best. Everyone knows this company is down and out so they will snap up malls for cheap.

 

[TheRage]

Maybe the trading halt relates to their ACCC dealings, or maybe to their ability to refinance or maybe.....

Too many maybe's for me. Good luck to anyone holding I hope you don't get burnt.

 

[zebop]

Heard on Fox this morning that halt MAY have something to do with MFS funding management. Possibly taking over as responsible entity for 35 of unlisted closed end Centro property syndicates ?
Maybe this is a turn around...not sure?

 

[adobee]

I heard that there are two equity offers on the table from american companies for CNP, and this should equate to positive news..

 

[UPKA]

I heard that there are two equity offers on the table from american companies for CNP, and this should equate to positive news..

if the offer is good, what if CNP is selling off its assets at basement price...? I think the market is waiting for a true valuation on the company, so any bid would clear out the uncertainty a bit more..

 

[Broadside]

Ahhh the old trading halt over the weekend trick. For those that don't know, you can only be halted for 3 days without going into suspension (which is a bad thing) so taking a halt over a weekend gives you 2 extra days to sort your stuff out.

My money is on a T/O offer or an offer for some of their better assets.

the freefall yesterday has me leaning towards bad news rather than good, I sold out of my small position yesterday accordingly.

 

[Go Nuke]

Yes it does usualy seem that "the market knows" and if there was a sell off then perhaps it is bad news.

On the other hand, like myself the trading halt over the weekend like this would give me a coronary with the volitility of CNP.

What is it they say...money invested is money you can afford to lose?

Too risky for me, but goodluck to those that hold!

 

[adobee]

I heard that there are two equity offers on the table from american companies for CNP, and this should equate to positive news..

I am only running of rumours of what people have heard.. but yesterday I heard that CNP had been talking with administrators thus the large decline in share price as some people who got the leak got out.. Then today I am told they have two equity offers from american companies.. I have just been told that this was also reported on abc radio about an hour ago by a college who went out to an appointment and had the radio on in the car..

I cant confirm it and it is rumour.. but if on abc radio it may have some merit..

 

[ROE]

I am only running of rumours of what people have heard.. but yesterday I heard that CNP had been talking with administrators thus the large decline in share price as some people who got the leak got out.. Then today I am told they have two equity offers from american companies.. I have just been told that this was also reported on abc radio about an hour ago by a college who went out to an appointment and had the radio on in the car..

I cant confirm it and it is rumour.. but if on abc radio it may have some merit..

History told me, when you take trading halt over the weekend it usually bad news..if it's good news it usually done during the week and they take it out for a day or 2

 

[reece55]

Heard on Fox this morning that halt MAY have something to do with MFS funding management. Possibly taking over as responsible entity for 35 of unlisted closed end Centro property syndicates ?
Maybe this is a turn around...not sure?

See MFS announcement - they have confirmed that they are looking at doing this.......
*****
CENTRO UNLISTED PROPERTY SYNDICATES - INDEPENDANT RESPONSIBLE
ENTITY PROPOSAL
In light of general market speculation yesterday, and media reporting today, MFS affirms
it has made a specific proposal to a range of Centro entities for an MFS entity to
become the independent Responsible Entity only of approximately 35 unlisted closed
end Centro property syndicates. MFS has on a number of occasions previously taken
such an appointment as a new Responsible Entity in similar circumstances. The
proposal only relates to a potential role as an independent Responsible Entity and does
not relate to any real estate acquisitions from the Centro group. MFS does not intend
to comment further on such proposal at this time.
*************

Cheers
Reece

 

[Judd]

All I can say is that one of our listed managed funds (AFI) unloaded all of its CNP holdings. At July 07 its CNP holdings were valued at $27M and by 31/12 got rid of the lot for $18.7M. May have known something as they have been holding Centro in its various guises for over 5 years.

I find it strange that people consider shares very risky and yet property is absolutely safe. Where there is poor management and/or large amounts of debt involved nothing is sure or safe.

For those retails holders (including retirees) in CNP who put money into these "defensive" investments to obtain an income stream, they must be worried and, sadly, I think the reality will be that they have done their dough.

 

[Bushman]

See MFS announcement - they have confirmed that they are looking at doing this.......
*****
CENTRO UNLISTED PROPERTY SYNDICATES - INDEPENDANT RESPONSIBLE
ENTITY PROPOSAL
In light of general market speculation yesterday, and media reporting today, MFS affirms
it has made a specific proposal to a range of Centro entities for an MFS entity to
become the independent Responsible Entity only of approximately 35 unlisted closed
end Centro property syndicates. MFS has on a number of occasions previously taken
such an appointment as a new Responsible Entity in similar circumstances. The
proposal only relates to a potential role as an independent Responsible Entity and does
not relate to any real estate acquisitions from the Centro group. MFS does not intend
to comment further on such proposal at this time.
*************

Cheers
Reece

Interesting - I am assuming that it is all the Australian and New Zealand syndicates that were originally bought from MCS. Syndicates vehicles 37 and 38 created post merger have strong US property interests.

There is also likely to be the sale of the unlisted Australian Wholesale Fund - CAWF. This entity owns the plum Aussie assets including Bankstown, Roselands, Colonaddes and the like. A-grade retail properties.

The halt has also extended to CER so it could also be the announcement of an equity or JV partner.

Anyway we will all know next week.

 

[The Mint Man]

Trading Halt, any thoughts?? A mate dropped 10k into these yesterday arvo... I'm thinking either good news or bad news will be heard soon...

One of my workmates (and his father) was considering doing almost exactly the same thing, all be it after the 'dead cat bounce'. I advised against it but not sure if he took that advise.

 

[tronic72]

I have a question...

If it was bad news, wouldn't the company wait until the 11th hour to give it? At this time the company still have over one month to broker a deal.

Just putting it out there.

 

[Julia]

See MFS announcement - they have confirmed that they are looking at doing this.......
*****
CENTRO UNLISTED PROPERTY SYNDICATES - INDEPENDANT RESPONSIBLE
ENTITY PROPOSAL
In light of general market speculation yesterday, and media reporting today, MFS affirms
it has made a specific proposal to a range of Centro entities for an MFS entity to
become the independent Responsible Entity only of approximately 35 unlisted closed
end Centro property syndicates. MFS has on a number of occasions previously taken
such an appointment as a new Responsible Entity in similar circumstances. The
proposal only relates to a potential role as an independent Responsible Entity and does
not relate to any real estate acquisitions from the Centro group. MFS does not intend
to comment further on such proposal at this time.
*************

Cheers
Reece

This announcement from the company doesn't seem to have impressed MFS shareholders too much: MFS down nearly 10% today.

 

[stockwhizben]

Article in sydney morning herald for those interested
Im from melb and checked The Age and not in there. Not sure if in any other Melb papers so here's link

http://business.smh.com.au/beam-me-down-please-scottie/20080111-1lia.html

 

[shinobi346]

CENTRO looks poised to reject Gold Coast-based MFS's bid
http://www.news.com.au/couriermail/story/0,23739,23040759-3122,00.html

I'm glad I got out of this one. Before the halt Centro was trading at 86 ¢ and CER at 58.5 ¢.

 

[Doris]

CENTRO looks poised to reject Gold Coast-based MFS's bid
http://www.news.com.au/couriermail/story/0,23739,23040759-3122,00.html

I'm glad I got out of this one. Before the halt Centro was trading at 86 ¢ and CER at 58.5 ¢.

Am I going senile? I don't recall Andrew Peacock ever being PM!

Quoted from Courier Mail site above:

MFS, chaired by former prime minister Andrew Peacock, told the ASX it had "made a specific proposal" to become the manager of "approximately 35" of Centro's property syndicates.