Simonds Group is worth more than 40¢ a share, shareholder MJH Group said on Tuesday after blocking a buy-out offer by the family of founder Gary Simonds.
MJH Group, the largest volume builder in NSW, amassed a near 16 per cent stake in its struggling Victorian counterpart and held enough of a voting share to stop the bid by Simonds and Roche families to privatise the company at less than a quarter of the $1.78 price at which it floated in November 2014.
"We bought into the business prior to the scheme being announced," MJH chief financial officer Nick Elkington told The Australian Financial Review.
"We saw really good value in it when we bought in. We continue to see really good value for companies operating in the largest housing market in Australia. There is a lot of opportunity there for it to be worth more than the 40¢ offered."
MJH, which bought into Simonds Group after the decline that saw its price fall as low as 15¢, said the business had more potential as the largest player in the country's largest housing market.
Victorian planning authorities approved 36,377 new standalone homes over the 12 months to September, more than the 28,894 given the tick in NSW.
Mr Elkington declined to comment on what his company's strategy would be now. On Tuesday, SR Residential declined to comment on whether it would make a new, higher offer.
"It's academic now," a spokesman said. "The scheme is failed."
Simonds shares fell 1¢, or 2.8 per cent, to 35¢ on Tuesday, adding to Monday's 10 per cent decline.
Simonds is only due to communicate to shareholders next at the end of January, when it holds its much-delayed annual general meeting for the year to June.
