LETTER: Bell should deliver, not delist
Business Day shines a light on Bell Equipment’s extraordinary goings on
Well done to Business Day for shining a light on the extraordinary goings on at Bell Equipment.
Since Business Day broke the news that chair Gary Bell is considering buying out minorities and delisting Bell, the share price has increased 80% from R6.48 to R11.65 (“Bell family considers delisting Bell Equipment”, January 14).
Business Day has also provided coverage of Bell pulling out all the stops to keep secret the prepared remarks and Q&A session of its 2.25-hour July 15 2020 AGM.
Moreover, on February 18 2021, it was reported that, in delivering his opening remarks at the AGM, Gary Bell admitted that management had let shareholders down, missed key performance targets and delivered less-than-acceptable results.
Subsequently, in response to a question about the Bell family funding “a low-ball tender offer and forcing a delisting” Gary Bell stated that delivering on strategy would “get the market pricing close to, or very much closer or better than, net asset value (NAV)”.
This is of great significance to long-suffering shareholders as it confirms that NAV of R38.58 is attainable and offers the prospect of a further 230% upside to the Bell share price.
It does not end there — it’s the belief of a number of shareholders that on a strategic sale Bell would realise a premium to its NAV of R38.58 a share.
Shareholders should ensure Bell delivers rather than delists.
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