Bear in mind I have only quickly skimmed through the announcement, but if you want to realise cash I am wondering whether you are perhaps better off waiting to get WGB scrip and options first, then selling those in a few months.
Unless of course you are desperate for cash earlier. Then there is market movements over that time but I am more referring to the underlying value assuming markets didn't move much.
I am thinking the deal provides an incentive to not tender your shares to get the after tax NTA, and that is mainly to receive the WGB options which have a bit of value. The options sweetener might add a few percent or so if you decided to accept all this via the all scrip method? I guess this is deliberate as WGB wants to hang onto as many new AUMs they can get their hands on.
The only issue with my comments above though is that if the market starts to get annoyed at all this WGB extra supply of new shares out there and we see a larger discount eventuate in WGB than otherwise would have been the case. Generally speaking though I probably have a bias to stay in here until it is finalised. I am not really interested in holding WGB long term, but on balance for most of my shares think I am probably taking the chance that WGB still holds up ok compared with its NTA and I might flick my new WGB shares and options in a few months time.
TGG Price at posting:
$1.58 Sentiment: Hold Disclosure: Held
