brian gaynor: higher bid price a credit to f&p directors - home appliance manufacturer

Haier has realized the complete control of Fisher & Paykel Appliances (FPA)
National Bank of Australia on Tuesday (NAB)
Acquisition of Bank of New Zealand (BNZ).
This coincidence is ironic, because the purchase of BNZ has also attracted great attention from the media, and Haier's acquisition offer coincides with the profit announcement of major overseas State-owned banks, including BNZ.
Ping An Insurance has been in a downturn for years, and its share price fell to 33 degrees Celsius in December 27.
However, this year it gradually picked up, with prices reaching 65 C on August 22, the day before the annual meeting.
The meeting was very optimistic. Ping An's share price climbed to 75c on September 7.
Before the opening of the market on September 10, Ping An Insurance announced that although no offer had been received, Haier had expressed "interest in making an offer for the company ".
Ping An's share price immediately rose 29 cents to 97 cents, which is in line with the normal acquisition premium, up from 20-35 cents before the acquisition. bid price.
Two days later, Haier announced it would buy Ping An Insurance for $1.
20 shares per share, than pre-
The published price is 75c.
The final offer is $1.
28. a shares are 71 higher than the price premium in September 7 and 97 higher than the previous share premium
65 C a annual meeting.
There are many comments on the status of Ping An Insurance as a national symbol.
However, the fact is that Ping An Insurance operates in a highly competitive industry and has experienced major financial difficulties and has not paid dividends since 2008. Haier's $1.
28 compared with the expected net profit of $47 in March 2013, the company's A-share price was $0. 927 billion. 6 million.
This is the expected price-earnings ratio of 19.
5, in the current environment, this is very attractive for electrical manufacturers.
The independent directors of Ping An Insurance should get a bouquet for the way they handle the situation, especially their positive outlook at the annual meeting and their determination to get a high premium from Haier.
With Fisher & Paykel Healthcare, the Fisher & Paykel name remains on NZX (FPH)
The company has made far more profits than its sister companies in recent years.
The market share of FPH is $1.
3 billion, $0. 375 billion more than Ping An's acquisition value.
Haier announced that it had acquired a stake in Ping An Insurance 90 and would force the acquisition of the remaining shares in November 6.
It was 20 years ago that the NAB announced that it had reached the 90 of BNZ.
NAB launched a bid to BNZ on July 21, 1992 at a price of 80 C per share
Bid price per share 79c.
The proposal valued the bank at $1. 48 billion. The Crown (which owned 57. 3 per cent)
Ricky White's Faye (27 per cent)
They immediately announced that bids would be accepted.
There are many controversial features of the acquisition, including: the price premium is very small.
Unlike Ping An Insurance directors, independent directors of BNZ have hardly tried to persuade NAB to raise prices.
The independent assessment report was prepared by the Bahrain brothers in Sydney.
Although the offer was made by an Australian company, the company is based in Australia.
Despite Baring's net profit of $0. 135 billion, the company assessed future BNZ maintainable revenues between $0. 18 billion and $171.
March 1992 for 1 million.
NZX asked Baring to prepare a supplementary report after the shareholder complaint.
On October 30, 1992, a special shareholders' meeting convened by shareholders was held at the Michael Fowler Center in Wellington.
However, due to the official and Fay holding of more than 84 shares by Ricky White, the NAB was able to reach a 90 stake and began a mandatory acquisition after seven days.
Compared with some other acquisitions, it is difficult to feel uneasy about the acquisition of Ping An Insurance, especially BNZ.
Ping An Insurance competes in the global market, While BNZ operates in a comfortable domestic environment and always has the potential to significantly exceed Baring's "future maintainable revenue of $0. 135 billion to $0. 18 billion ".
Since 1992, BNZ has remitted $5. 521 billion in dividends to the NAB and reported net profit of $0. 741 billion in September 2012.
According to the valuation of ASX listed banks, BNZ is currently worth about $8. 5 billion.
As a result, from the total expenditure of $1. 481 billion, BNZ delivered more than $14 billion worth to the NAB.
The latter figure includes the dividend and the current estimated value of the Bank of New Zealand.
At the Business Herald on Monday, an article by Kirk Hope, chief executive of the Bankers Association, was rather lame in an attempt to justify the banking industry's huge profitability.
Hope is a former employee of Westpac.
He wrote: "Given the size of their business and the state of risk, our bank has earned realistic returns for their shareholders.
"It is hoped that the profitability of our major banks will be commended because they have contributed significantly to our economy.
He concluded: "While providing returns to shareholders, it is important in the following areas
In New Zealand, banks do far more than that.
"If banks are so important and profitable, why should we sell them to Australia at a very favorable price?
As shown in the attached table, the net cash income of the four major state banks in Australia for 3. 501 billion years was $2011/12, or 16.
A year-on-year increase of 6 percentage points.
By contrast, the four major NZX listed companies
Auckland International Airport, Contact Energy, Fletcher House and telecom-
Net profit for the same period was only $1. 054 billion, accounting for only four banks.
Three of New Zealand's four largest companies are the former government.
Part of the reason is that we have not created many high growth companies in the private sector.
One of the reasons is that our major banks are making slow progress in supporting the start-up
Because they made too much money to lend to individuals to buy.
Residential prices.
It would be noted that banks provide a wide range of services including ATMs, branch networks, online banking, mobile banking, general insurance, life insurance, investment funds and KiwiSaver programs.
ANZ's OnePath and ASB banks are our two largest KiwiSaver providers appointed by the government.
Many KiwiSaver bank funds invest the cash portion of their portfolio back into the bank, which can be large amounts of money.
The bank then lent the money to their clients.
No wonder our main banks are so profitable.
It is important that our banks make profits, but the profitability of Australia's four major banks should be better balanced.
Our State Bank in New Zealand
State-owned banks and NZX listed companies.
Kiwibank reported net income of $79 million for the most recent fiscal year, significantly lower than the earnings reported by the big four Australian banks. owned banks.
The Bolger government and the determination of Fay, Richwhite to sell BNZ so much is a huge disappointment
Close to the bottom of the earnings cycle-20 years ago.
Brian Gaynor is an executive director of Milford Asset Management.
Bgaynor @ Milford assets.