Originally posted by gcc6
Don’t quite understand the SPs of exu and rms.
By my calculation ...
Exu, 12c x 4 shares = 48c. Minus cash 5c x4 =20c curtesy of rms. Total 4 shares after cash component is 28c. You swap that 28c for rms at 39c currently, so there’s another 11c (2.8cps) or 23% gain to be had.
Where’s the rms sp going whether t/o is successful or not? Rms is down about 10c due to this t/o. Mr Zeptner can’t increase the offer anymore without having to resign!
Where’s exu sp going if t/o fails to get up?
AND YOU WANT MORE?!!!
Not sure about your accounting skills there? it's a 4:1 scrip + 5cps so the cash is not factored in to the valuation of the share price?
As the original offer currently stands, the valuation is actually less attractive to EXU shareholders as time goes on; not sure if its some heavy's in RMS taking advantage of arbitrage or similar.
RMS closed at 38.5c today so divided by four the real price of EXU would be 9.625cps at today's valuation if their initial offer stands i.e. a 28% premium to the SP at time of the T/O (7.5c) or ~30% less than the cornerstone investment made by ALK.
This is why the cash component to the offer is important to shareholders as it protects the baseline of our initial investments.
I was always of the opinion I'd consider an offer between 17cps - 20cps, and depending on Mace I'll see how we go with this. Something in the vicinity of
3:1 and 5cps I'd probably accept.
