RHG Group

Who would have thought it would end like this? RHG, the old Rams Hoan Loans business, which one wag described as the worst float in history, has accepted a takeover offer from the Resimac Syndicate, which will pay shareholders 44.1 cents per share plus a fully franked 3-cent dividend (ex-date 31 Jul). It’s a quiet end to a remarkable saga.

For a scintillating tale of sin, redemption and, ultimately reward, few pieces of fiction come close to the dramatic reality of RHG’s life as a listed company. We recommend reading old reviews from the company page for an account of the sorrows and rewards of sharemarket investing.

Members who followed our last buy recommendation on 28 Apr 11 (Speculative Buy - $1.05) will earn a 58% return when the deal is completed. Those on lower tax brackets would have done even better from the $1.215 of fully franked dividends.

The cash component of the bid will be paid in mid to late October, bringing to an end this remarkable tale. Farewell RHG; we have accumulated both profits and wisdom from your short listed life. The share price is up 8% since 4 Apr 12 (Sell - $0.425) and it’s time to CEASE COVERAGE.