TAW (ASX) Ann: Tawana &amp; Alliance to Merge and Capital Raising &amp; SIA

Originally posted by RelentlessAU ↑

After taking the time to read through the presentation and announcement regarding the merger, I am starting to believe this is indeed a positive move for both companies.

TAW may experience some ST pain as investors may look at the 37c per share and sell without doing their DD whilst forgetting about SpinCo.

However, no doubt AMAL will experience some pretty nice gains considering what they are getting out of this deal. Heck, they are getting Mark freakin' Calderwood. However, if AMALs SP goes on a bit of a run, at the end of the day, TAW holders will get 1.1 shares of AMAL.
Something to keep in mind also is that TAW will have 4 members on the board out of 7. AMAL will have 2 (1 who needs to be a resident in Singapore) and Burwill 1.

Using the information above, it would be fair to say that the new merged group will be run very similar as to how TAW has been run in which, lets face it, is a large factor as to why we are invested in TAW in the first place.

We will now also own 100% of the Bald hill resource. Once the resource upgrade cones out, I imagine AMAL/TAW will suddenly be on a few more radars.

Finally, i'd like to refer you all to page 5 of the TAW/Alliance merge announcement.

“Both companies have successful track records of creating substantial value for shareholders and, together, we will retain this focus. Our ability as a Merged Group to capture future growth opportunities in the high growth lithium market will be significantly enhanced. The exchange ratio of 1.10 is calculated on the basis of merger of equals, adjusting for each company’s working capital, cash and debt position, provides Tawana Shareholders with approximately 50% of the Merged Group.”

I haven't done any research regarding the financials of AMAL but I seriously doubt that they wouldn' have come into consideration when offering the 1.1 AMAL shares.

Put simply, this is still a strong Long Term hold

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Also our OZ Doz is forecast( today by Westpac & Morgan stanley 3 months ago) to drop to 74 cents by this years end & 70 cents in 2019 .... so big boost in income from Spod sales to Burwill.

Not sure how this works out against Singapore dollar ...when we get AMAL's shares in october-ish ..Any FX traders here ?