JHX sprang out of the blocks on Monday, opening up $1.77, or 4.9%, after the board offered an olive branch to extremely disgruntled shareholders in the form of a promise from Chairman Anne Lloyd stating that “the board has no intention to seek ASX Foreign Exempt Listing status” and, more importantly, will “hold a shareholder vote before making any decision to change our ASX listing status”. Unfortunately, the despised $14bn takeover bid for Azec Group is still going ahead, and the stock remains over 25% below when the announcement was made – the board have clearly forgotten they should be acting in the best interest of shareholders, the actual owners of the business.
- We are cognisant of the fact it may take a long while for confidence to return to this previously much-loved building company.
MM is cautiously long and bullish towards JHX
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