I have only been in one takeover where the company I owned was taken over by another ASX listed company, OZL's takeover of AVB where OZL offered a Cash plus script offer which was good because it let all the faithful shareholders of AVB to continue to have a slice of OZL and be able to see the development of their assets.
On reflection the offer probably was a fair one( about 100% premium) even though some shareholders thought the proper value of the company was more.
I have also been in companies that have taken over others, again another script offer when my stock RMS took over EXU and paid what I thought was a fair price even when EXU holders wanted more. Funny they are probably very happy with their slice of RMS as it has been on a run since from around $0.50 to $1.22 and as high as $1.40, and their EXU assets are going to start mining shortly . If the assets stayed with EXU it could have been several years before mining started with high Capex.
So personally I hope WEB get an offer from another ASX Company and would love for it to be a script plus cash offer. The other thing is if it is private equity they may only buy the more profitable parts of the business and could spin it off in an IPO so we could get a slice of the new company by that method.
Would hate it to be a solely cash offer from private equity and no IPO as this would mean shareholders would not have an ongoing interest in the part of whole of the business sold.
Let's hope we see a decent offer ( premium of another 50% at least).
Christopher
WEB Price at posting:
$14.36 Sentiment: Hold Disclosure: Held
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