Also, let's not forget the very significant votes at the 2016...

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Sceptic111

216 Posts.

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17/05/18

08:19

Post #: 33150829
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Originally posted by damosid88 ↑

The big question for me is what has Greenstone and, to a lesser extent, Glencore got planned. I'm not sure we realise the implications of AVB's second largest holder, a London private equity house that had invested in and held AVB shares for several tough years, coming out with comments in the Australian Financial Review to publicly slap down the takeover offer and the AVB board for accepting. Highly unusual for these guys to go public.

So it suggests to me they were either blindsided by this cosy takeover arrangement that the AVB board signed up to or felt humiliated to be taken for fools by investing their investor's money to prop up AVB through to development of AN, then told to accept a low ball offer as 'thanks' for their support knowing that the real prizes (Centro, PB, Pantera and higher copper prices) were on the horizon. I can understand Appian taking the bait as Michael Scherb has no mining pedigree nor interest in investing long term to grow a company. BlackRock have a foot in AVB and OZL so not a hard decision either and their World Mining Trust is simply interested in investing at the bigger end of mining town and the royalties from AVB were always the main game for them and they will flow through anyway so no loss to Evy and his team or investors.

Greenstone and Glencore of course, are miners and commodity money makers, have history and experience in Brazil, in the Carajas and it is worth remembering Greenstone's partners are ex Xstrata mining executives. Where did AVB get some of their original tenements from?? So they know the potential and it is why they sat patiently on the register for years waiting for the opportunity we all knew was coming (and OZL were smart enough to realise it too).

I just can't imagine Greenstone sitting back now after publicly saying this offer is low ball, and then turning around and accepting it at the last minute. I also can't imagine the Greenstone partners wanting to explain that to their investors who have sat patiently (like us) waiting for a fair pay day and then shrugging their shoulders and signing up.

So Greenstone going public has implications on a number of levels, whatever you want to read into it.

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Also, let's not forget the very significant votes at the 2016 AGM against the re-appointments of 3 directors. It wasn't completely clear, but from memory it looked like Glencore and perhaps Greenstone voted against, so I think there have been ongoing issues between major shareholders for a long time. Also remember the change made to the Constitution (in relation to prohibiting partial takeovers if I recall correctly).

AVB Price at posting: 17.0¢ Sentiment: Hold Disclosure: Held
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