Oh good, FH recommend Somers
Item Details
Existing Shareholders offered the
ability to participate in capital
raising
Both proposals offer existing shareholder’s a pro rata ability to
participate in the some or all of the capital raising.
Based on Argonaut’s analysis, post recapitalisation, the
Somers’ DOCA proposal has been assessed to offer a superior
value to shareholders relative to the Minjar proposal.
While both offers provide creditors with the opportunity of being paid a 100c in the dollar, and
notwithstanding the apparent timing advantage to creditors in the Minjar proposal (subject to
the adjudication of the Mozambique Capital Gains Tax by the Trustee), we consider that the
Minjar proposal currently remains more uncertain as the Somers’ documentation is fully
executed and in a form acceptable to the Administrators and the Company with a deposit paid.
In these circumstances, we currently recommend that the Somer’s proposal be adopted by
(20min delay)