MB blogging has finally proved too much for the handsome McGrathmageddon, and the firm is set to return to private hands:
McGrath is set to return to private hands with a consortium of Knight Frank and Bayleys offering to buy the company in a deal that would value it at about $95.5 million following years of speculation about the company leaving the ASX.
The move, if approved, would end McGrath’s tough run on the ASX where it failed to meet expectations and was circled by private equity firms for several years. Institutional investors had heavily backed the McGrath’s $130 million float in 2015 and were eager to tip in much more. But McGrath sunk on its first day of listing – falling 12 per cent from its $2.10 offer price and tumbled to as low as 18 cents a share during the COVID-19 pandemic.
So, those persuaded by the McGrathmageddon float will only lose 71% of their capital (minus a few divis) over eight magnificent years:
The new buyers must see a renovator’s delight.
