Ann: Target's Statement and Independent Expert's Report, page-9

DYOR:

($1.4b carried forward tax losses)/(9.5b shares) = 14.7cps
How is that fair?
Am I missing something?

Refer to page 109 in the appendix of the the following:
"Target's Statement" report.

"Taxation
As at 31 May 2018, Atlas Iron has approximately $1.4 billion of carried forward tax losses. BDO Corporate Tax (WA) Pty Ltd has assisted us in assessing Atlas Iron’s ability to utilise these tax losses as at 30 June 2017 and has concluded that the losses can be used against future profits. Therefore, based on the
forecast cash flows included in the Adjusted Atlas Model, Atlas Iron has an effective tax rate of 0% over
the forecast period.
Given the nature of the continuity of ownership test, Atlas Iron’s ability to utilise carried forward tax
losses must be assessed at each reporting date, therefore there is a risk that this may change. However,
given the tax advice obtained for the most recent tax period, we consider that we have reasonable
grounds to assume this assumption will hold over the forecast period."

Already posted on HC:
https://hotcopper.com.au/threads/an...4305513/page-15?post_id=34364745#.W0v0PtIzaUk