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AKE allkem limited

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Merger: Yes or No, page-559

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tt2000

5,039 Posts.

1253

04/12/23

09:06

Post #: 71248807
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Originally posted by akgo01 ↑

"I will probably choose the CDIs."

OK. You obviously don't mind your position as a shareholder being degraded to an unsecured creditor whose return is not guaranteed but as risky as a shareholder. You basically don't mind taking the risk of a shareholder but having the right less than a shareholder. And you obviously don't think it is probable that the schemer of this grand scheme will create a grander scheme in which they cull CDI.

I have nothing to say to that. You decide what you think best for you.

"It is also possible to convert CDIs to NewCo stock at any time after the merger."

Oh ... thank you for the information.

Now, to convert CDIs to NewCo shares for Australian residents, please tell me the following:
1/ which broker to use?
2/ what documents are needed? and
3/ how much does one have to deposit (in US$ I would imagine) to open an account with this broker?

Please show me that you really know what you are talking about.

"The other point to make is that the merger gives us increased scale,"

The increased scale benefits that have been touted since the announcement in May are not risk free. It is not guaranteed it will succeed. I have asked the question whether the would-be CEO has a track record showing that he will be able to pull it off. Have you read Section 8 of the Scheme Booklet about the risks?

BHP might still lob a bid? Of course. Other companies we never think of may bid to take over Allkem. And when that happens, if Allkem is still listed in ASX, the bidder will have to offer premium. But with this reverse takeover by Livent, we don't get any premium, but instead we are demoted to CDI holders.

I wil now continue my response to your earlier post.

"No one has been able to make an argument of why NewCo won’t be stronger and survive bad times better than AKE will if it goes it alone."

I certainly can't. To be able to make such an argument, someone has to have good knowledge of the fundamentals of the two companies, which I don't, and the ability to analyse the data and draw a logical conclusion, which I probably can as I was majoring in analytic philosophy. But Kroll has made the argument you are looking for. Just read Section 8.5 Risk factors relating to the business and operations of the Combined Group. It takes 19 pages for Kroll to list and discuss the risk factors that may pull down the NewCo. But it takes less than a quarter page and only 2 paragraph for Kroll to say about risks relating to Allkem as a standalone entity in section 8.6.

So although Kroll doesn't explicitly say that AKE is safer from the risk of failing as a standalone entity compared to the NewCo, we can see he obviously thinks so from the fact that he says very little about Allkem's risks as a standalone entity and he says a lot about the NewCo's risks.

"If anyone can answer why the Hombre Meurto resource isn’t worth having them I’m all ears."

I'd say if the Hombre Meurto resource is worth having, then let's save money and buy it. Allkem earns more money so far anyway.
"An other important point is that not all brine resources are the same quality and worth owning."

Why do you need to point that out? Does Allkem have brine resources not worth owning? Which one?

"What happens if there is a DLE breakthrough that makes spodumene uneconomical?"

That will kill the NewCo, won't it? Because that will make Mt Cattlin and Whabouchi uneconomical. And that will kill the Bécancour conversion plant. Don't you realise that?

"Also, whilst it has been studied and they think impacts will be minimal, are you willing to bet that Livents operations don’t affect SDV in 10-20 years time?"

I have no scientific background. So if the study done by scientists says impacts will be minimal then I believe it. Are you a qualified scientist that you question and doubt this study? Or is that just a tactic to scare me to accept the merger?

Please don't forget to answer my question about converting CDI to NewCo shares. Thanks.

Expand

From the above, I guess you also think 5g is the cause of global warming and everything that goes wrong?

Perhaps you should spend less time on HC and research the rights and ease by which CDIs can be converted.

Either way, which way you vote is going to be irrelevant.

I'm happily buying on the basis the merger proceeds

AKE Price at posting: $8.48 Sentiment: Buy Disclosure: Held
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