However, don't get too excited about AGS receiving a T/O bid. Its a long shot. Heathgate already have 75%, control and are operator, so why overpay for the remaining 25%?
AGS' best hope is with the terms of the JV and the termination provisions therein. I suspect that AGS as the extremely inexperienced junior that it is has inadvertently signed up to a JV with some ordinary performance terms (with respect to Heathgate as operator) and termination provisions.
Headed for the courts is not a desired option for AGS. It means that there are insufficient mechanisms in the JV agreement to ensure Heathgate behave themeselves and operate the JV with transparency. There is a chance the court says tough bikkies to AGS, you willingly and knowingly signed up to a JV with cr_ppy terms, now you'be got to live with it.
AGS Price at posting:
53.5¢ Sentiment: LT Buy Disclosure: Held
