Colorado Group Limited

By Intelligent Investor · 13 Sep 2006

By Intelligent Investor ·
13 Sep 2006

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Cadence Opportunities Fund Limited - CDO

Current price

$1.80 at 16:40 (19 April 2024)

Price at review

$4.66 at (13 September 2006)

All Prices are in AUD ($)

In our last review of this footwear and clothes retailer we suggested there might be more to come from the current takeover bid from Affinity Equity Partners. Its $4.50 offer was too low and has been increased to $4.70, which now includes the payment of a 53 cent fully franked special dividend. We think the new bid is still too low, but the board doesn’t and has recommended it. Affinity has also waived some of the conditions and extended the offer to 22 September, with further extensions likely.

The share price has increased slightly since our last update, in issue 204/Jul 06 (HOLD—$4.60), but is still below the takeover price. Taking into account the special dividend, the offer proceeds are worth slightly more than the current share price.

While a higher bid is now unlikely, we suggest you continue to HOLD, with a view to accepting once Affinity gains control of the company.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.

Colorado Group Limited

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Colorado Group Limited

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