Parsad Posted September 4, 2014 Author Posted September 4, 2014 Congrats! I'm a little confused on what exactly's being announced. Are you announcing a private (public?) placement of the stock? Or that you guys own this company and we can buy shares along side of you through our brokers? Is this open to US investors, or just those in Bermuda? All of the above! Will be open to Canadian and U.S. accredited investors. There is a secondary option for international investors through a capital raising we will be doing in Hong Kong...I'll explain that at the time. The private placement will get you in at a set price...the same as us and all other existing shareholders. You can buy in the open market as well, but it is unlikely you will get this price, since we and other shareholders will probably buy any stock available at the private placement price. We may increase the private placement size, as I'm being overwhelmed by responses since last night. I've got you guys all in order and the documents will be sent in that order, but it may take me a few days to confirm your email, as I'm tied up on a number of things as you can probably understand. Cheers!
kiwing100 Posted September 4, 2014 Posted September 4, 2014 Congrats! I'm a little confused on what exactly's being announced. Are you announcing a private (public?) placement of the stock? Or that you guys own this company and we can buy shares along side of you through our brokers? Is this open to US investors, or just those in Bermuda? All of the above! Will be open to Canadian and U.S. accredited investors. There is a secondary option for international investors through a capital raising we will be doing in Hong Kong...I'll explain that at the time. The private placement will get you in at a set price...the same as us and all other existing shareholders. You can buy in the open market as well, but it is unlikely you will get this price, since we and other shareholders will probably buy any stock available at the private placement price. We may increase the private placement size, as I'm being overwhelmed by responses since last night. I've got you guys all in order and the documents will be sent in that order, but it may take me a few days to confirm your email, as I'm tied up on a number of things as you can probably understand. Cheers! Hi Sanjeev, Email sent. Does that mean that investors in the private placement will be owning shares in a company listed on the stock exchange in Hong Kong?
cobafdek Posted September 4, 2014 Posted September 4, 2014 Congratulations! And don't forget to set up for your public vehicle a second class of Korean-style preference shares for us super-deep value investors!
JBird Posted September 4, 2014 Posted September 4, 2014 Congratulations! And don't forget to set up for your public vehicle a second class of Korean-style preference shares for us super-deep value investors! Hahaha yes!
Philip Morris IV Posted September 4, 2014 Posted September 4, 2014 Congratulations! And don't forget to set up for your public vehicle a second class of Korean-style preference shares for us super-deep value investors! Had a good LOL at that one! Congrats Sanjeev -- great news and am excited for this new saga.
ERICOPOLY Posted September 5, 2014 Posted September 5, 2014 I have arrived at a name for Sanjeev's new company: "Alpha Holdings" I know, Sanjeev will be thrilled! Not only is that right up his ally, it can be listed as 'AH' so alphabetically it trumps 'BH'.
Parsad Posted September 5, 2014 Author Posted September 5, 2014 I have arrived at a name for Sanjeev's new company: "Alpha Holdings" I know, Sanjeev will be thrilled! Not only is that right up his ally, it can be listed as 'AH' so alphabetically it trumps 'BH'. LOL! Not unlike Buffett, it wasn't GEICO that he managed to control, but Berkshire Hathaway. He retained the name to remind him what an awful purchase it was. Our circumstances are very similar...it wasn't Russell Breweries that we managed to control, but a distressed business where intrinsic value was considerably underwhelming like Berkshire in its original state. We will keep part or all of this company's name in the future to remind us of the same thing. I will give you one anecdote that will illustrate the culture we are trying to create. I've refused a CEO's salary, because I denied our controller a pay raise. Instead, I've told the board that I would like to get paid $500 less than our controller annually, and will not take a pay raise until he gets one. I will give you one further anecdote to illustrate the type of people we are trying to retain and hire. When I became involved with the company's finances a few months ago, our controller had not been paid for 10 weeks...in fact, none of the core employees had been paid for 10 weeks, but they kept on working! We've caught up on all of their salaries after I became involved, and retained those employees. They could not be happier and morale could not be better. I told them I cannot believe they did not leave and promised them they would always be paid every pay period going forward. Cheers!
Liberty Posted September 5, 2014 Posted September 5, 2014 Someday Roger Lowenstein and Alice Schroeder will write books about this :D
JBird Posted September 5, 2014 Posted September 5, 2014 I have arrived at a name for Sanjeev's new company: "Alpha Holdings" I know, Sanjeev will be thrilled! Not only is that right up his ally, it can be listed as 'AH' so alphabetically it trumps 'BH'. LOL! Not unlike Buffett, it wasn't GEICO that he managed to control, but Berkshire Hathaway. He retained the name to remind him what an awful purchase it was. Our circumstances are very similar...it wasn't Russell Breweries that we managed to control, but a distressed business where intrinsic value was considerably underwhelming like Berkshire in its original state. We will keep part or all of this company's name in the future to remind us of the same thing. I will give you one anecdote that will illustrate the culture we are trying to create. I've refused a CEO's salary, because I denied our controller a pay raise. Instead, I've told the board that I would like to get paid $500 less than our controller annually, and will not take a pay raise until he gets one. I will give you one further anecdote to illustrate the type of people we are trying to retain and hire. When I became involved with the company's finances a few months ago, our controller had not been paid for 10 weeks...in fact, none of the core employees had been paid for 10 weeks, but they kept on working! We've caught up on all of their salaries after I became involved, and retained those employees. They could not be happier and morale could not be better. I told them I cannot believe they did not leave and promised them they would always be paid every pay period going forward. Cheers! This is really good stuff. Excited for the future.
jouni1 Posted September 5, 2014 Posted September 5, 2014 I will give you one further anecdote to illustrate the type of people we are trying to retain and hire. When I became involved with the company's finances a few months ago, our controller had not been paid for 10 weeks...in fact, none of the core employees had been paid for 10 weeks, but they kept on working! We've caught up on all of their salaries after I became involved, and retained those employees. They could not be happier and morale could not be better. I told them I cannot believe they did not leave and promised them they would always be paid every pay period going forward. Cheers! mind=blown. where i work we have a saying, "they pretend to pay and we pretend to work". glad that there's still motivation left somewhere! truly an unbelievable bunch of people, especially if they don't have ownership stakes in the company.
Aurelius Posted September 5, 2014 Posted September 5, 2014 Congratulations Sanjeev! Tap dancing to work - awesome! I've sent an email as well. But I live overseas - what about us Europeans?
muscleman Posted September 5, 2014 Posted September 5, 2014 How does private placements work? I've never done one before so please excuse me for asking newbie questions. Am I going to fill out some forms and wire my money to some bank account, cross my fingers and hope that after a few weeks, the shares hit my broker account?
Parsad Posted September 5, 2014 Author Posted September 5, 2014 How does private placements work? I've never done one before so please excuse me for asking newbie questions. Am I going to fill out some forms and wire my money to some bank account, cross my fingers and hope that after a few weeks, the shares hit my broker account? LOL! Essentially. The funds go into a law firm trust account. They issue the certificate and it is delivered to your broker, or wherever you desire the certificate to be delivered. Mohnish just did one for $110M...I don't think there were any real issues. We are going to be doing one for $10M...I'm pretty sure we can avoid any problems. Cheers!
muscleman Posted September 5, 2014 Posted September 5, 2014 Hi Sanjeev, just to clarify: When you say "we are set to participate" in the Bermuda vehicle, is that the new public company which is participating or MPIC funds? Public company will be investing directly in Bermuda vehicle. MPIC Funds will be the largest shareholder in the public company. All acquisitions of private enterprises will occur through the public company, while MPIC will continue to manage assets as it does. At some point, Corner Market Capital (MPIC's general partner) will be roled into the company like Hamblin-Watsa was in Fairfax, and it will become another cash flow machine for the pubco. congratulations! Is the company going to be listed publicly at some point?? cheers Zorro Already a public company. Press release will go out in the next couple of days. Will move to a larger listing in the New Year. Cheers! Will this reinsurance company also invest in publicly traded stocks, or only buying out private companies? In other words, will it run similar to Berkshire's model?
Palantir Posted September 5, 2014 Posted September 5, 2014 How big of an investor do you need to be? :)
LC Posted September 5, 2014 Posted September 5, 2014 You can buy shares in the public co at the market price, Palantir. Which is what I'll be doing :)
Parsad Posted September 5, 2014 Author Posted September 5, 2014 Hi Sanjeev, just to clarify: When you say "we are set to participate" in the Bermuda vehicle, is that the new public company which is participating or MPIC funds? Public company will be investing directly in Bermuda vehicle. MPIC Funds will be the largest shareholder in the public company. All acquisitions of private enterprises will occur through the public company, while MPIC will continue to manage assets as it does. At some point, Corner Market Capital (MPIC's general partner) will be roled into the company like Hamblin-Watsa was in Fairfax, and it will become another cash flow machine for the pubco. congratulations! Is the company going to be listed publicly at some point?? cheers Zorro Already a public company. Press release will go out in the next couple of days. Will move to a larger listing in the New Year. Cheers! Will this reinsurance company also invest in publicly traded stocks, or only buying out private companies? In other words, will it run similar to Berkshire's model? Yes, but a wee bit smaller! ;D Cheers!
Parsad Posted September 5, 2014 Author Posted September 5, 2014 How big of an investor do you need to be? :) Accredited, but as LC said, you will be able to buy shares in the open market...maybe not at the same price as the private placement though. Cheers!
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