I stand by my comment on mgmt getting a free ride if the offer goes through. Securing funding and developing a mine require considerable effort. Running a cash box is easy, and history in the private equity industry shows managers have the most to gain from such entities.
By accepting a less than adequate offer for a great project, management/board are foregoing production upside in return for not having to deal with the pointy end of a development. I could understand if it was a great offer.
Ultimately, this offer may be the right decision. It is difficult to determine if the muted price action this morning is a low probability outcome on the offer or a statement on the amount being offered.
If you sell a known quality asset at a deeply discounted price and buy an unknown asset at a deeply discounted price are you ahead?
china deal?, page-29
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Last
$1.12 |
Change
-0.060(5.11%) |
Mkt cap ! $433.6M | |||
| Open | High | Low | Value | Volume |
| $1.14 | $1.16 | $1.11 | $4.128M | 3.670M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 39996 | $1.12 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.13 | 12789 | 1 |
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| Last trade - 16.10pm 19/07/2024 (20 minute delay) ? |
| CHN (ASX) Chart |