kwaidan1...I have done my sums...and don't think a blocking...

kwaidan1...

I have done my sums...and don't think a blocking stake is possible in GUJ.

Need to pick up something like 11-15m shares (or options to convert) on market to have a real chance...and I suspect as soon as they see you building such a stake on the register, they would act to negate you in one way or the other anyway.

INR might ultimately be a better play in this regard...take a blocking stake there instead...but here we have an even greater liquidity problem andno options to help with the volumes.

I think we are basically fc.uked!

Best approach therefore may simply be an awareness campaign to make existing GUJ holders see just how much we have been screwed...and encourage a strong NO vote...because as it stands, the parent is showing a certain degree of distain for all holders of GUJ.

The whole process is embarrassingly transparent...and painfully not in the best interests of GUJ shareholders, which puts the entire management "support" for the deal under a real shadow.

I can't wait to see the "independent" experts opinion on this...lol...GUJ get to provide the lions share of future upside, including significant resources and infrastructure with direct port access and "critical mass" to the combined entity...AND provide much needed liquidity to the INR register...and what do we get for up-sizing INR in this way?

Well...what we get is an entirely manufactured and underdone offer price, significantly below "fair value", which gives us an inequitable entry into into an illiquid, underperforming stock that without GUJ and her shareholders will never reach critical mass, never attract serious investors, never gain entry to the ASX300 let alone ASX200...and take ultimately, take considerably longer and considerably greater ecap ex to ramp up to full production.

The synergy makes sense...and is good for everyone including GUJ holders...but it is much better for INR holders, which you may note the parent holds a much larger interest in!

Realistically, GUJ and her shareholders would have been much better off going it alone...and perhaps taking out INR down the track...but with a management intent on adding value to shareholders and not just the parent compnay.

At the end of the day, both companies are a screaming buy...way undervalued...but I would advise everyone to stay clear, for the simple fact the parent company is their own worse enemy here, killing all forms of interest with their obvious agenda.

Aussie funds, instos and most sophisticates will underline the current activity as a big red flag for future reference...and unless they rectify such concerns, this cannot be undone and will result in the company never seeing the sort of interest and associated volumes typically seen in stocks with similarly priced market caps.

They think they are being smart...saving a few million...yet this behavior will trim hundreds of millions off the INR price in the years to come!

I do hope they realise this.

Exposure to INR from GUJ will be an excellent investment going forward...I have no doubt about this...but given what GUJ brings to the table, we should be getting much more than an insulting 3 for 4 shares on the deal, into a stock that barely trades $30k per day!

I really do have to wonder who advises some of these corporations...as some of them seem to do everything they shouldn't in terms of creating market interest and ultimately future wealth...for themselves as much as everyone else.

Anyway, this is an investment for me, with significant future production and associated dividends my focus...so I could care less what the daily girations do...but if current activity is any guide to what shareholders can look forward to, one is forced to ask the question; just how will they treat shareholders when dividends are finally available?

And this is the key...the market has a memory like an elephant and I suggest current activity will not be forgotten, resulting a permanent "risk discount" applied to the stock indefinately.

Cheers!