Those statements are reasonable based on information available...

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27/04/21

19:22

Post #: 52760748
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Originally posted by jphill: ↑

On 9 March 2021 the Board stated that it ... ‘has carefully considered the scheme and has concluded that the scheme is in the best interest of Mainstream shareholders ..... the offer provides liquidity and certainty that they may not otherwise achieve by retaining their Mainstream shares.’ The offer price was $1.20 per share.
On 27 April 2021 the Board stated that it ... ‘has carefully considered the scheme of arrangement in the Revised SID (Revised Scheme) and has concluded that the revised scheme is in the best interests of Mainstream shareholders’
The latest bid is an 87.5% increase on the value recommended by the Board on 9 March. They owe anyone who sold on their recommendation some sort of apology or explanation of their gross undervaluing of the company even with their suggestion that they were open to higher offers. Why did they not refuse the first offer and how come they failed to see the dramatic revision in the company’s value?
Why should we accept this bid?

Phill

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Those statements are reasonable based on information available at that point. The shares were overvalued at 70c given the profits reported, so it is all about the prognosis of future profits different bidders think they can generate which is all speculative. You may as well complain that when the share price was 40c the company didn't flag that it would cross $1 in a couple of years.

MAI Price at posting: $2.24 Sentiment: Hold Disclosure: Held
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0 Great analysis

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