Ann: Zoleo JV Arbitration Update, page-29

First 29 Last

Share
Profile

Follow
padrinomessina

88 Posts.

55

26/05/24

15:15

Post #: 74013515
Share

Originally posted by Septic14: ↑

If your speculation that RP is loading the jv with its own expenses is correct (and this seems a likely cause of the dispute), then the jv profitability is understated. Similarly, the jv valuation would be artificially depressed based on historic understated earnings. Makes it hard for RP to justify a high price which is karma really, if they want to sell the 50%. But on the other hand, it also makes it hard for BCC to justify a sale to RP for a higher price than the profit declared justifies.

Therefore, I'm imagining that the real task for the arbitrator is trying to value the company to account for any manipulation of profit by RP historically.

In the negotiation, RP has the advantage of knowing how much the profit truly is, since they managed the jv, while BCC can only make judgements of that.

If I were the arbitrator, I'd be trying to establish the max price RP would buy 50% for, or the minimum they'd sell for (representing the value RP as the party best able to value it comes up with), and give BCC as the deceived party the option to choose to buy or sell at that price. Dreams are free!

Interesting situation.

As a shareholder, I still think exiting the jv to RP leaves Zoleo in the hands of the company better qualified for consumer marketing in the largest ( ie Nth American) market and therefore best able to make a decent return, and best able to justify a high valuation.

Expand

both BCC and RP manage the JV company. Both Michael and Simon from BCC are directors on the board of Zoleo Inc.

BCC Price at posting: 12.5¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

MGU

New results confirm Buena Vista's iron grades potential

MRC

Mineral Commodities to shut down Tormin mineral sands project as oil spill contaminates beach

Trimmed CPI figure provokes market jump of 1%, but inflation pressures remain a reality

KOB

Koba, formerly a cobalt player, gears up to become newest explorer in the uranium state: South Australia

1CG

One Click Group jumps 4% after ending quarter with $2.4M in cash; $1M in revenue and 150K+ users on board

There are more pages in this discussion • 39 more messages in this thread...

First 29 Last

Add BCC (ASX) to my watchlist

(20min delay)
Last 16.5¢		Change 0.005(3.13%)		Mkt cap ! $14.25M

Open	High	Low	Value	Volume
16.5¢	17.0¢	16.5¢	$16.26K	98.46K

Buyers (Bids)

No.	Vol.	Price($)
1	50254	16.5¢

Sellers (Offers)

Price($)	Vol.	No.
17.5¢	8999	1

View Market Depth

No.	Vol.	Price($)
1	50254	0.165
1	30000	0.150
1	103448	0.145
2	29499	0.140
1	7407	0.135

Price($)	Vol.	No.
0.175	8999	1
0.180	22662	2
0.195	7500	1
0.200	25000	1
0.220	40000	1

Last trade - 10.48am 31/07/2024 (20 minute delay)

BCC (ASX) Chart

Ann: Zoleo JV Arbitration Update, page-29

New results confirm Buena Vista's iron grades potential

Mineral Commodities to shut down Tormin mineral sands project as oil spill contaminates beach

Trimmed CPI figure provokes market jump of 1%, but inflation pressures remain a reality

Koba, formerly a cobalt player, gears up to become newest explorer in the uranium state: South Australia

One Click Group jumps 4% after ending quarter with $2.4M in cash; $1M in revenue and 150K+ users on board

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Zoleo JV Arbitration Update, page-29

Top Stories

New results confirm Buena Vista's iron grades potential

Mineral Commodities to shut down Tormin mineral sands project as oil spill contaminates beach

Trimmed CPI figure provokes market jump of 1%, but inflation pressures remain a reality

Koba, formerly a cobalt player, gears up to become newest explorer in the uranium state: South Australia

One Click Group jumps 4% after ending quarter with $2.4M in cash; $1M in revenue and 150K+ users on board

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News