COMMENCED

July 2020

OPENING PURCHASE PRICE PER SHARE

~$0.89

Sandon Capital wrote to the Chairman ahead of the 2021 AGM to explain why it was voting against the Board’s recommendations.  You can read the letter here.

The outcome of the 2021 AGM sent a strong message to the Board that some shareholders, including Sandon Capital, were very dissatisfied with performance and the direction in which the company is heading.

Whilst Sandon Capital continues to execute its activist strategy regarding A2B’s operational performance, a more pressing issue was the announcement from A2B immediately prior to the 2021 AGM of a non-binding memorandum of understanding to swap its “jewel-in-the-crown” property in inner city Sydney.  In the announcement A2B told shareholders that the property was valued at $57 million.

The same property was recently valued by the NSW Valuer-General at $71 million (for the land alone).  Sandon Capital also commissioned research by well renowned independent property valuers which concluded an indicative assessment of the property’s value at $77 million.

Sandon Capital believes the property could even achieve a significantly higher value than this if A2B were to obtain development approval.  There are also concerns about the potential tax consequences of the proposed swap transaction.

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Sandon Capital recently wrote to the Directors raising its concerns and called on them to immediately abandon the property swap transaction.  You can read the letter here.

A2B’s property valuations have been a point of ongoing dissatisfaction amongst shareholders.  Investor pressure in 2021 led to a revaluation of the A2B property asset portfolio from $10 million to $81 million. Sandon Capital believes the portfolio could be worth far more however, and this view on value underpinned the decision to invest.