Via Domainfax:
McGrath could soon be back in private hands with founder John McGrath and former Sydney franchise boss Shane Smollen understood to be working on a deal to take back control of the listed real estate flop.
…At face value, Mr McGrath and Mr Smollen would only need to raise about $50 million to buy back all the shares at current pricing – should the other shareholders agree to sell. McGrath had a market capitalisation of $281 million when it floated in December 2015.
Investment giant Perpetual holds just over 14 per cent and listed investment company Argo just over 7 per cent, both having upped their stakes after participating in the block trade by former sales agents in September.
A senior industry source told The AFR there was a “lot of movement” going on behind the scenes at McGrath.
“Private equity is sniffing around and the shareholders, including John McGrath and Shane Smollen are trying to do something,” they added.
Yeh, yeh. Where headed into the great Australian property reckoning. If you want to buy it wait for it to unfold and pick it up at the receiver.
Never trust a real estate agent.
