delist, page-40

Stocktipper

The delist price is just the CS guarantee for ATO CGT purposes in the remote chance that a delist from the ASX occurs but the transfer to the nasdaq fails to proceed. In that event CS has to guarantee to buy the shares so we can pay off any tax liabilities. It does not have to be a fair and reasonable price based on forward earnings and is not designed to be exercised anyway. You are correct in assuming detailed knowledge of the deals TZ has signed will lead to a much higher price but of late the price has been capped at the low 4s. Several of us have therefore assumed the offer price/guarantee will be set at the nasdaq float minimum of US$5. Very few shareholders will take such an offer in whole or in part. If CS could be bothered to attract a reasonable number of shares from the 10-15% that remain reasonably liquid then they will be forced to pay something closer to the expected list price, a figure that should become clearer at the AGM and of course the prospectus.