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Great Ajax Corp T.AJX


Primary Symbol: AJX

Great Ajax Corp. is an externally managed real estate company. The Company’s primary business is acquiring, investing in and managing a portfolio of mortgage loans. The Company operates in a single segment focused on re-performing mortgages, and to a lesser extent non-performing mortgages and real property. The Company primarily targets acquisitions of re-performing loans (RPLs), which are residential mortgage loans and non-performing loans (NPLs), which are residential mortgages. It invests in single-family and smaller commercial properties directly either through a foreclosure event of a loan in its mortgage portfolio, or, less frequently, through a direct acquisition. It may acquire RPLs and NPLs either directly or in joint ventures with institutional accredited investors. It may also acquire or originate small balance commercial loans. Its manager is Thetis Asset Management LLC. It conducts its business through its operating partnership, Great Ajax Operating Partnership L.P.


NYSE:AJX - Post by User

Bullboard Posts
Post by dt_coreon Aug 26, 2013 12:29pm
574 Views
Post# 21697905

Banks Pitching AJX?

Banks Pitching AJX?
Word on the street is that due to the lull in mining, lots of bankers are looking to other smaller/mid cap companies for M&A work. Apparantly AJX has become a "top of mind" name that bankers are pitching to their clients as an acquisition target. This includes strategic buyers AND private equity. Note: To be clear, this is NOT AJX management looking for a buyer, rather this is bankers pitching potential would be buyers to make an offer or to try and open a dialogue with AJX. Remember there is a poison pill in place so nothing would ever come of it unless management/board recieved an offer they couldn't refuse.


So what does that mean for AJX? Given management has stated they are not interested in selling the company it doesn't mean much at present time. But if the right offer comes a long you'd think that might be the start of a dialogue with the board. Probability is higher now than it has been in a while given restructuring is done but I think management's idea of "fair value" may be higher than what buyers are willing to pay today so I'd give it a low probability unless the share price gets up to the $1.50 range (which would make the premium more palatable to the acquirer)

So net, net management/board has no plan to sell the company BUT offers are likely to start coming in and could potentially incent the company to reconsider it's position.

Bullboard Posts