Valad Property Group's (aka Invalid) chairman, Trevor Gerber, was philosophical yesterday when it came to sentimentalising about the company which has reported more than $1.7 billion of losses over the past three years and seen its security price crash 96 per cent.
"One can dwell on the past but clearly the future is all that's relevant," explained Gerber at a meeting of shareholders.
This was in response to one long-suffering investor lamenting about the lack of any dividend payments from the property concern.
Before security holders finally agreed to put Invalid out of its misery by approving a $1.80 per security takeover proposal by Blackstone Real Estate, Gerber noted how "the history of the company is quite long and convoluted".
"We have laboured as hard as we possibly can to try and create the best possible value outcome for security holders," Gerber said about the $207 million takeover bid, which was a 35 per cent discount to the group's net asset value.
"We have had no sacred cows," the Invalid chairman added.
Before the meeting wrapped up, Gerber thanked staff for dealing with "very difficult circumstances".
His final tribute went to his fellow directors, who he said could "have cut and run" but instead "stayed the course".
But Invalid shareholders will never know how much Gerber and his board were paid in the 2011 financial year for "staying the course". Invalid will never have to lodge a remuneration report thanks to the takeover getting the green light.
In the year to June 30, 2010, fees paid to Gerber more than doubled to $680,000. Invalid's deputy chairman Robert Seidler saw his fees nearly triple to $451,667 for the period.
TICKING BOXES
At the start of the meeting Gerber also provided one snippet of advice to security holders planning to lodge a vote. "Make sure you tick all the boxes otherwise your vote will be Invalid," Gerber said. Sadly, the company known as Invalid never managed to tick many boxes for its security holders.
BEAR NECESSITIES
The former Macquarie banker and QBE director John Green seems to have found a fan in the US political satirist PJ O'Rourke.
One year since being described by O'Rourke as the next Michael Crichton on the cover of his first novel Nowhere Man, Green has managed to get another plug from the US writer. Green's second book, Born to Run, has been described by O'Rourke as "a spectacular political thriller ... it kept me up nights".
But aside from blurbs, Green told CBD that O'Rourke even offered one correction after reading the manuscript of the novel. The US writer pointed out that the region of America mentioned in the novel where a grizzly bear appeared was actually inhabited by black bears.
Described as an "edge-of-your-seat political thriller, action packed with terrorism, treason and murder", the story centres around the US presidential hopeful Isabel Diaz.
Diaz's campaign stumbles when one of her Muslim proteges is accused of diverting funds to terrorists. It also sees an Australian software engineer thrown off a London skyscraper. And then a terrorist attack on New York City using software stolen from the murdered Australian.
The book, which hit the stands yesterday, will be officially launched by the former NSW premier Bob Carr at the Byron Bay Writers' Festival on Friday.
LITTLE AND A LOT
The former federal Nationals leader Mark Vaile is probably not regretting his decision to bow out of politics after the Coalition's loss to Kevin Rudd in the 2007 election.
Vaile is arguably one of the few ex-Coalition politicians to have done better in the corporate sphere during the financial crisis, thanks to his shareholding in the Nathan Tinkler-founded coalminer Aston Resources.
Since listing at $5.96 a share in August last year, shares in Aston, of which Vaile is chairman, have nearly doubled in value. They hit a new high of $11.36 yesterday, taking the value of Vaile's 1.7 million shares in it to $19.9 million.
Vaile's stakes in the other companies on which he has a board seat are relatively paltry. His stake in CBD Energy, of which he is also chairman, is worth $25,156 and his stake in Virgin Australia, of which he is a director, is worth about $8700.
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Frequently Asked Questions about this Article…
What happened to Valad Property Group (referred to as 'Invalid') and why did its shares crash?
Valad Property Group — referred to as 'Invalid' in the article — reported more than $1.7 billion of losses over the prior three years and saw its security price fall about 96%. Those sustained losses and poor performance contributed to the collapse in its share value.
Who made the takeover offer for Valad and what was the deal price?
Blackstone Real Estate made a takeover proposal of $1.80 per security for Valad (Invalid). The bid represented a roughly $207 million takeover and was described in the article as a 35% discount to the group's net asset value.
What does it mean that the takeover was at a 35% discount to net asset value (NAV)?
A 35% discount to net asset value means the $1.80 per security offer was about 35% lower than the company's book value per security (its NAV). In plain terms, shareholders were being paid significantly less than the reported underlying asset value of the group.
How did the takeover affect shareholders' access to remuneration information?
According to the article, because the takeover was approved, Valad (Invalid) would not have to lodge a remuneration report for the 2011 financial year. As a result, shareholders would not be able to see how much the chairman Trevor Gerber and the board were paid that year.
Why did some shareholders accept the $1.80 takeover despite past losses and no dividends?
The article reports the board argued the company had a long and convoluted history and that management tried to create the best possible outcome for security holders. Given the severe losses, lack of dividends and a 96% share-price decline, shareholders ultimately agreed to the takeover to 'put the company out of its misery' and realize value from the offer.
What practical voting advice did chairman Trevor Gerber give to shareholders at the meeting?
Trevor Gerber advised shareholders planning to lodge a vote to 'make sure you tick all the boxes otherwise your vote will be Invalid.' It was a reminder to follow the voting form instructions carefully so votes are counted.
How did Aston Resources perform and how did that affect Mark Vaile's holdings?
Aston Resources listed at $5.96 a share in August of the prior year and its shares nearly doubled to a new high of $11.36. That rise took the value of Mark Vaile's 1.7 million shares in Aston to about $19.9 million, according to the article.
Which other companies and people were mentioned that everyday investors might recognise?
The article mentions Blackstone Real Estate (the acquirer), former Macquarie banker and QBE director John Green, the satirist PJ O'Rourke (who commented on Green's book), Mark Vaile and his holdings in Aston Resources, CBD Energy and Virgin Australia. These names may be of interest to investors reading the piece.
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