Hi Clik,
First hostile TO for me i've got to say also. I did a bit of reading as I'm sure most of the team have. But I'll share what I came up with.
Hostile TO's in Aus, are very rarely successful. In 2015, 22 attempts were made on the ASX and ZERO were successful. It seems us Aussies are pretty conservative investors, we tend to follow the boards recommendation. If they say no, shareholders tend to follow.
On the rare occasions they are successful, it usually stems from a deep rooted sentiment of dissatisfaction and mismanagement from the board. I would confidently say, that is not the case here. So it's a long shot for LIT, but given our longstanding belief that Sileach is rubbish and this forum has been calling them out on that for a long time now. They need LMax badly, so to have any chance of success.
LIT need to -
1. Publicly discredit our board, as much as possible.
2. Make their offer look as attractive as possible, they can do this through SP pressure. Upwards for LIT, downwards for LPD of course. This is not hard with these kinds of MC's, for a bigger player.
3. IMO, it is highly likely once they've pressured the SP's enough, we'll see an increased offer from LIT, one that on paper actually seems like a good deal.
4. They will drag this out to frustrate LPD holders. It did state that their offer could remain open for up to 12 months. I don't know what conditions would need to be present to allow this, I'm not sure.
5. They will continue to announce whatever they can, with all the herbs and spices on top, but we can all see through their sheet by now right?
6. Legal may get involved, who knows. Lawyers will make up whatever to get a few billable hours.
What can LPD do-
1. SM taking up full entitlement, will go a long way in my book and seriously dent LITs already slim chances, considerably.
2. The takeovers board. This is not a court but they do hold a lot of sway. They are made up of professionals of high morale standard over various professions. That can make virtually binding recommendations. LPD can make application to the TO board, for a hearing and basically anything can be ruled upon, if LPD can substantiate the fact that such a course is in the best interest of it's shareholders and not the LPD board members personally. It's kind of an integrity unit.
3. We garner the interest of a white knight/sophisticated friendly investor. To take up a position.
4. Carry on the successful development of LMax and soldier on ticking the boxes. Business as usual, we should have enough funds to keep on trucking through to completion of DFS.
As shareholders, to protect our positions we can.
1. Not jump ship to LIT, they're a joke anyways. Other than maybe their Lake Johnston tenement. They have nothing of real value IMO and Lake Johnston has been overdue (as Announced),to see a drill bit for over a year now.
2. Participate in the EO, allow the team to have the resources they need to make magic. Who thought credit raisings wouldn't be part of the journey?
3. REMAIN PATIENT, I've said it many times. This is not a trading stock. We're playing the longer game here. To do it right will take time.
4. Don't sweat the SP. Don't look at it, or exit your position if you can't handle a bit of heat. If the fundamentals change massively and the team are not performing, I'll race you to the door!
But if they are doing all the right things. Don't worry about the SP!
5. This is an accumulation phase leading closer to development. When this pops, it will pop hard and I'm certainly not missing out on that.
6. Hold long and enjoy the CGT discount along with your many bags of luggage.
Anyways sorry clik, I ramble on. I'm sure some of the other guys will have some really good input also. There are some pretty switched on posters around here.
Expand
(20min delay)