Horizon in Sight for Vision Eye Institute

Well that was one of the more obvious takeover arbitrages. As we said in a previous wire and our most recent monthly report, $3bn Chinese company Jangho wasn’t going to settle on a 20% stake in Vision Eye Institute. After the market closed yesterday, Vision announced a cash bid from Jangho at $1.10 per share, a nice healthy premium to the previous closing price and very healthy premium to the ‘undisturbed’ price of less than $0.70 a few months ago. There is some chance of a higher bid but this one has the unanimous backing of the Vision board so will likely go through otherwise. That would see the sun set on what has been one of Forager’s most successful investments. Our initial interest was sparked thanks to a little piece Matthew Kidman wrote in the Sydney Morning Herald when the share price was $0.27 and the price-to-earnings ratio less than 3. Nice work Matt, I hope you made plenty yourself. Here is the 2012 article (VIEW LINK)

Steve Johnson
Founder & Chief Investment Officer

Steve began Forager Funds in 2009, and now manages approximately $350m across two funds. Offering a listed Australian Shares Fund (FOR) and an unlisted International Shares Fund, Steve focuses on long-term investing in undervalued companies.

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