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TUA:NZ - Turners Auctions


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Turners Auctions is a wonderful business we have owned for the last four years that is now subject to a take out offer for $3.00/SH plus $0.15 special dividend. They are like Lancashire Holdings in the sense that they have paid out almost all their cash flow, more than their earnings, to shareholders in dividends for about a 10%+ yield since we have owned them.  They have a de facto monopoly of the auto and other equipment auctions in NZ with lowest costs and highest reach in the country as their internet coverage makes anything being auctioned from their many locations available for bidding by buyers not physically present.


The solid take out offer is almost certain to be accepted.  It has support from the two largest stockholders who own almost half the shares.  Picking up shares if the price should drop below the take out price could be low risk merger arb  :)

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