They don't like putting it out in plain English do they!!
Yes $1.35 for those who have accepted, a guarantee that any further offer before December 31 will be atleast $1.35 per share.
It remains to be seen how the $1.35 is achieved. It appears T2 only has to put in atleast $1 per share (as per their bid before the Takeovers Panel became involved). It now seems there are a few options as to how the extra $0.35 cents per share will be sourced. It appears the bidder has been given scope to source this from Realm, either by a dividend or capital reduction. This does not seem fair to me. They are buying us out, but it's likely not all of the cash will be coming from the Bidder. I am certain, my own opinion, T2 will be putting in as little of their own money as possible.
It is not my current intention to accept the $1.35 offer. This COULD change if there are a sharp increase in the number of acceptances, or if the independent directors recommend acceptance.
The Bidder will need to lodge a Change in Substantial Holders notice for every additional 1% of shares they get acceptances for.
A number of forum members have stated their fair value of RRP is well above the $1.35.
$1.35 is still well below the independent experts valuation.
As per the announcement, a new Bidders statement is required to be released to the ASX tomorrow. This may have further details on it around how they intend to fund the extra $0.35.
In the days after this we will get a response from the RRP independent directors.
This will be the announcement I will be keen to read. I assume (and hope) they will recommend continued rejection of the $1.35, but I will be keen to see their comments about their proposed way forward (capital raising).
I believe the fair value of RRP currently has gone well beyond what Taurus thought it would be when they first purchased Foxleigh back in August 2016. There are a number of reasons for this.
The contracted Coal price achieved tells the story.
For the September 2016 (when the acquisition was announced) quarter the contract price was USD$75/ton
Since then it has not been below USD$127.50/ton, and has been as high as USD$180/ton.
USD$159/ton for the March quarter (last advise from RRP).
Reserves up
Mine life up
Exploration up
Productivity and efficiency up
Cash at bank up
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