thanks for very good assessments and interesting new thread.
A couple of comments:
1. Dis: The ann. says: "The Directors of AKW intend, subject to the necessary approvals, to issue the GGP shares issued as part consideration for this transaction in specie to its shareholders,".
They seem to be saying all the shares, and not just one, will be issued. Also they do not make any mention of combining this with a new share issue, though I realise that they have previously advised of a rights issue.
my thoughts perhaps they are trying to reward/placate LT shareholders who have suffered over the years from value losses.
So are you talking from your prior experience of the way these matters are normally dealt with?
2. Dis and BB: There is also a $1.0m loan facility, on the negative side, which would also detract from the valuation.
3. Unfortunately we do not know what the current cash position is (at least i don't), so there may be already some extra cash in the kitty on the plus side.
On balance at present, i am inclined to favour the good value scenario, even after taking account of all liabilities .
GGP Price at posting:
2.6¢ Sentiment: None Disclosure: Held
