I suggest that AVB holders should appreciate that this is very good news.
Another important milestone has been achieved for Pedra Branca.
The local population sees the benefits for them and are getting right behind it. In my book at least, that is good news surely?
Should the opposite have occurred and the locals were there to protest and shout it down, to oppose it.. then PB would have had major problems. .. something that would surely be a bad thing for those intending to hold on to AVB shares, and Not Accept.
It should be celebrated and not denigrated!
Surely it adds yet more $value to the already mooted high value of AVB shares.. greatly supporting the Not Accept case!!
As for BPAA's comment :
"I see it touching 16s if no other offer comes along giving holders some doubt over future pricing and forcing them to think about accepting the offer."
OK I concede another offer may come along... but I am not holding my breath
I do not think anybody is "forced" to do anything... let alone rethink their decision to Not Accept. "Oh I changed my mind because I was "forced" to do it!" ... not really.
A move downwards in the AVB share price closer to the Offer closing would be quite normal.... not a "manipulation". Yes I agree though, 16c is quite possible... of course.
One does not need an excuse to rethink not accepting the Offer. However I would have expected total solidarity from those posters hard-pressing the Do Not Accept case..!
The twist in the tail of this announcement, as is so often the case with AVB, is again the no-holds-barred warning that finance could be through a pro-rata share issue.
"The financing strategy for Pedra Branca is dependent on the outcome of the current OZ Minerals takeover offer. Should that offer not proceed, Avanco will seek to raise finance, including through the issuance of equity and / or the assumption of debt. The target project development timetable will be subject to finance timing, availability and terms. "
It also suggests that PB start could be delayed if it has to go out with the begging bowl again for loan funds, like it did at AN.
The AVB management guys are simply pushing back... when you push them. At least that is how I read it.
Anyway.... I never knock good news. Great stuff.
AVB Price at posting:
17.3¢ Sentiment: None Disclosure: Not Held
