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The Warehouse & Arvida offers Why our exchange is getting wiped [VIDEO] · The SME Stream

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  Speaker 1: The information provided in this program is of a general
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  Speaker 1: nature and is not intended to be personalized financial advice.
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  Speaker 1: We encourage you to seek appropriate advice from a qualified
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  Speaker 1: professional to suit your individual circumstances. We need to talk
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  Speaker 1: about takeovers because some of our major listed companies and
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  Speaker 1: our targets, both the Warehouse and our Veta could be
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  Speaker 1: offloaded from our exchange. It's not great for you as
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  Speaker 1: a How do you feel about that? Do you think of?
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  Speaker 2: You think it isn't right? So you're wake up of money.
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  Speaker 2: That's not really the thing that you want to see. However,
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  Speaker 2: it's part of an economic cycle. It's part of a
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  Speaker 2: market cycle. We're just going to make sure alongside the
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  Speaker 2: industry that we go and find those businesses that you
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  Speaker 2: know that can come in.
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  Speaker 1: Bullianing is serving up hot tech deals. Do do the warehouse?
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  Speaker 1: The warehouse where everyone gets a bargain. The Warehouse could
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  Speaker 1: get wiped from investors, with its founder and significant owners,
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  Speaker 1: Sir Stephen Tindall and a private equity firm launching an
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  Speaker 1: offer to take at private. They're willing to pay the
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  Speaker 1: outstanding investors at premium between one dollar fifty and a
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  Speaker 1: dollar seventy a share, valuing the warehouse between five hundred
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  Speaker 1: and twenty and five hundred and ninety million dollars. The
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  Speaker 1: retailer has been underperforming. It's sold off Torpedo seven and
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  Speaker 1: shut down its online business, themarket dot com this year.
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  Speaker 1: Those failings led its longtime CEO, Nick Grayston to depart immediately.
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  Speaker 1: The board is now cleaning the company up, putting the
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  Speaker 1: focus on its three core brands, the Red Sheds, Bluesds
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  Speaker 1: and nol leaming. I was meant to interview the chairwoman
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  Speaker 1: of the Warehouse, John Withers, this week, but with the
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  Speaker 1: situation unfolding, she can't speak publicly, as much as she
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  Speaker 1: was looking forward to communicating the changes the company's making.
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  Speaker 1: Avida is also under offer in a two billion dollar
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  Speaker 1: deal from an American firm. A reprising of the retirement
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  Speaker 1: village sector means that share price was cheap and private
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  Speaker 1: equity clearly sees it as an opportunity. It follows the
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  Speaker 1: takeover of MetLife Care in twenty twenty by a Swedish
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  Speaker 1: firm for one point three billion dollars, but the stock
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  Speaker 1: exchange has barely found replacements to help revive it. There
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  Speaker 1: was a direct listing last week but it was the
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  Speaker 1: first in almost two years. So I asked the ended
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  Speaker 1: X chief executive Mark Peterson, how he plans to fight
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  Speaker 1: for investors.
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  Speaker 2: We work hard towards you know, finding those businesses. I
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  Speaker 2: think the industry, you know, when you think about the
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  Speaker 2: investment banking teams, the lawyers, the accounting firms, everybody wants
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  Speaker 2: the market to be bigger. I think it is going
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  Speaker 2: to be a collective effort actually for that to occur.
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  Speaker 2: We're doing a lot of work around making sure we've
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  Speaker 2: got some settings right, and we've got a government who's
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  Speaker 2: actually really interested in making sure they are set right.
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  Speaker 1: So that's really positive.
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  Speaker 2: So hopefully, hopefully we have turned to corner.
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  Speaker 1: What about more government asset sales potentially, Hey, we bank,
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  Speaker 1: we've had ports and power companies partially listened before. Are
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  Speaker 1: you seeing potential appetite there that excites.
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  Speaker 2: You or we've certainly been speaking to government about the opportunity.
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  Speaker 2: You know, we think public markets are incredibly important to
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  Speaker 2: New Zealand, and you know, when you're you know, in
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  Speaker 2: a tougher economic environment, you've really got to prioritize where
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  Speaker 2: you invest. You know, if we if we think about
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  Speaker 2: you know, school's education, health. You know they are top
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  Speaker 2: priorities for New Zealand and maybe there's a way we
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  Speaker 2: can actually reader react some investment into that. So the
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  Speaker 2: idea is there, and you know, let's see what the
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  Speaker 2: government wants to do.
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  Speaker 1: Are you telling them doors open, come on them whenever
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  Speaker 1: you like?
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  Speaker 2: Sure, we're seeing public markets are incredibly important and can
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  Speaker 2: help facilitate it.
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  Speaker 1: I think we need to just briefly talk about takeover
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  Speaker 1: as Mark too launch this week and one day the
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  Speaker 1: warehouse on the table and also our veda. It's not
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  Speaker 1: great for you as a how do you feel about that?
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  Speaker 2: You think if you think it isn't right so you
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  Speaker 2: wake up on Monday, that's not really the world the
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  Speaker 2: thing they would want to see. However, you know, markets
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  Speaker 2: are all about people's views on price and people's views
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  Speaker 2: on value, and the market had some of those companies,
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  Speaker 2: especially after harder economic times, price where they were and
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  Speaker 2: that does create some opportunities. So it's part of an
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  Speaker 2: economic cycle, it's part of a market cycle. We're just
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  Speaker 2: going to make sure alongside the industry that we go
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  Speaker 2: and find those businesses that you know they can come in.
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  Speaker 2: They've got different stories to them too, so you know,
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  Speaker 2: you can't just call it a simple sort of issue.
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  Speaker 2: It's a complex issue. But you know, we just got
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  Speaker 2: to keep working.
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  Speaker 1: How do you work at that? Do you fight to
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  Speaker 1: keep them to ensure that they aren't taken over or
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  Speaker 1: but then again, you don't really have much control over
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  Speaker 1: the price that the market demands on the stock, So
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  Speaker 1: then do you just put all of your effort into
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  Speaker 1: fighting to get more listings like this one?
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  Speaker 2: Well, the thing that they exchange to do the most
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  Speaker 2: is make sure people can tell their stories to investors
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  Speaker 2: and help them do that. And that's alongside the broken community,
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  Speaker 2: the analysts and the research folk and the sales traders.
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  Speaker 2: So they're in the business of creating awareness around all
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  Speaker 2: of it as well.
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  Speaker 1: We are too.
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  Speaker 2: But you know, at the end of the day, when
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  Speaker 2: somebody wants to come and pay our price, which is,
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  Speaker 2: you know, a substantial premium over where it's been traded at,
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  Speaker 2: then it's a little hard for us to actually influence that.
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  Speaker 2: That's actually about, you know, other people.
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  Speaker 1: If you had a message to private equity firms, we're
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  Speaker 1: looking at our market going hmm, cheap opportunity, what would
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  Speaker 1: you say with them?
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  Speaker 2: I think the you know, nobody really wants to markets
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  Speaker 2: to shrink, right, so you'd.
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  Speaker 1: Say bugger off.
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  Speaker 2: But at the same time too, it's actually probably more
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  Speaker 2: about what our market can do to think about where
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  Speaker 2: multiples are with valuations are. You know, obviously, if if
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  Speaker 2: the rezerve band gets on top of inflation, the rates
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  Speaker 2: start to come off and money stalls to fow back
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  Speaker 2: in inequities, we get to repricing going on. I mean,
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  Speaker 2: we saw the retirement sector repress completely, you know, off
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  Speaker 2: the back of that.
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  Speaker 1: But so you know, things will chase.
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  Speaker 2: But you know, we just we just need to keep
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  Speaker 2: working hard. The industry needs to really really really work together,
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  Speaker 2: and we find these businesses create these opportunities like these
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  Speaker 2: guys I've got today.
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  Speaker 1: That's kind of part of the issue, isn't It Is
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  Speaker 1: that our exchange is so interest rates sensitive, which is
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  Speaker 1: why our prices have been have had so much pressure
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  Speaker 1: on them, and hence why others are seeing opportunity and
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  Speaker 1: taking them oment.
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  Speaker 2: You will, certainly we've been a yield orientated market and
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  Speaker 2: that does you know, bringing rates and returns if you like,
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  Speaker 2: into play. But at the same time too, hopefully we're
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  Speaker 2: largely through that and.
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  Speaker 1: We can come out the other side positively. So who's
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  Speaker 1: listing next? Mark? I won't tell anyone, we'll keep that
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  Speaker 1: under ask. But there are you know, a seriousness. There's
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  Speaker 1: a lot of people that are interested.
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  Speaker 2: You know, they like the idea of you know, controlling
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  Speaker 2: their destiny, having access to capital, allowing shareholders to come
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  Speaker 2: in and out of the stop you know, the fundamentals
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  Speaker 2: public market. It's all about as well understood and liked.
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  Speaker 2: We're just going to make sure the settings are right
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  Speaker 2: and people can want to do more about.
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  Speaker 1: Can you give us an indication of the type of
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  Speaker 1: industry that is potentially looking to list. Every time we
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  Speaker 1: talk Mark, we talk about how our stock exchange is
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  Speaker 1: not actually reflective of the industry that we have minerallys
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  Speaker 1: today for example, we're only just getting sort of more
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  Speaker 1: of those now. So what sort of industries can we
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  Speaker 1: expect to even hope to see more of on our exchange.
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  Speaker 2: For It's a tough question. A lot of it comes
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  Speaker 2: down to where businesses are in their in their life cycle.
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  Speaker 2: But you know, the types of folks that we're talking
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  Speaker 2: to are everybody from sort of infrastructure through the technology
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  Speaker 2: through to agriculture. But it's the benefit the market benefits
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  Speaker 2: people that are that are really keen on growth, you know,
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  Speaker 2: so growth is probably the key factor.
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  Speaker 1: Well, when they come to you and say they're gonna last,
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  Speaker 1: can you slip my details across the which I'd love
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  Speaker 1: to bring them along, bring along. Thank you, Marg, good
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  Speaker 1: to be here for share your time, no trouble,