Thanks for the comprehensive post Old Soul. You nailed it.
NIDO directors unanimously backed the bidders original offer which included statements such as
-Low trading liquidity – Nido Shares have historically had very low trading liquidity on the
ASX. Securities with low trading liquidity can be more difficult to sell on-market, including in
relation to the disposal of an entire shareholding.
-If you do not accept the Offer, the amount you will be able to realise for your Nido Shares is uncertain.
So what have our directors actively done to protect the value of the holdings of minority shareholders?
- undertook a 50/1 consolidation reducing liquidity even further...oops
-taken on massive debt at above market rates lining the pockets of the major shareholder...oops
- failed to purchase any shares themselves whatsoever despite the all time lows.... oops
-putting forward a rights offer that requires minority shareholders to fork up $10 per every dollar invested just to maintain holding percentage...oops
If NDO directors had any hint of credibility they would have had the company independently valued prior to announcing a rights issue that cannot lead anywhere but minority shareholder decimations & compulsory acquisition.
NDO Price at posting:
6.0¢ Sentiment: None Disclosure: Held
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