what happens if the no vote succeeds, page-2

These are good questions longt.

In my discussions with Lucio (CEO) and Susan (CFO) a couple of weeks ago I posed similar questions on behalf of shareholders. I said that I was aware that there are a) truth in takeover provisions that limit SGH's ability to raise the offer, absent an alternation offer, and b) there may be time limitations (six months) on when Seven can lob further takeover bids etc.

I have little knowledge in M&A, so asked them
a) if the Scheme does not succeed, whether SGH are legally allowed to engage the company to underwrite a capital raising?
b) what is the present cash flow and cash at bank situation at nexus, whether the Bridge facility has been drawn, and is the additional gas being pumped from Longtom (see previous NBT posts) keeping Nexus cash flow positive.

These were reasonable questions that I felt shareholders had a right to know. Neither I, nor the market, have been given any guidance on these matters.

With this limited background and knowledge, I believe that there are four options in play:

1) We do not get to a vote and SGH find a mechanism to increase their offer (perhaps linked to the recent Shell announcement).
2) An alternative offer appears at the last moment.
3) An "Against" vote wins:
a) Seven continue to finance Nexus while continuing to negotiate with the board and shareholders.
b) Seven force Nexus into Administration
4) A "For" vote wins.

I will not speculate on which I think is the likely outcome, but feel that a middle ground will be trod.

If an "Against" vote prevails, I would say that Nexus will certainly go into a trading halt until the present financial position is clarified and the intentions of the debt holders (SGH) are clarified by the board. This could extend to a suspension if unconditional agreement is not quickly achieved.

This is a very fluid situation, and I'm sure much work is going on behind the scenes by all parties, including NBT.

All I can say is "Watch this space"

FlyingDr