Strachan based his assessment prior to the meeting of AZZG noteholders on the deal being attractive to noteholders. He was wrong about that because Aurora played hardball. So JC has upped the offer to match what appears necessary to get Aurora onside. Since 64% of noteholders were willing to go along anyway, he may succeed this time unless Aurora spit the dummy.
What some may not have noticed is that the resolutions are about completion of sale. It is unclear what the position will be if a JV partner comes along.
JC needs to clarify the detail of 'friction costs', some are just tax. Strachan and JC both explained that the interest of MCG is not an equity position but a residual fee above book value that was a condition of the loan. That leaves open how book value should be calculated as at end 2015, or April 29.
AZZ Price at posting:
50.0¢ Sentiment: Sell Disclosure: Held
