AMA

4.35%

4.8¢ ama group limited

ok, so what does STO stand for.. sorry, i'm not the smartest...

First 25 Last

Share
Profile

Follow
RussNLP

19 Posts.

23/05/18

13:43

Post #: 33270549
Share

Originally posted by alfredo9 ↑

I notice that STO has rejected a takeover offer from venture capitalists, on several grounds:

Not good value for shareholders
Implied premium in the bid being steadily eroded by commodity price rises
Unfair to shareholders in that only the largest remain invested in the business and gain from upside
Complicated takeover structure
Target obliged to help the bidder organize its funding so that the bid can go ahead
Target has a great business model which is turning the company around
Target has low costs and great revenue streams so it is a better deal for shareholders if they just keep doing what they do.

I see some parallels in the AMA takeover situation, the difference being that the AMA directors have unanimously embraced the takeover bid whereas the STO directors have unanimously rejected it.

With STO, the bidders can't get the funding they need to buy STO outright so they want STO to help them raise the money, in part by by hedging future production.

With AMA, the bidders won't pay for the whole company but instead want AMA to shed the unwanted parts before a buyout goes ahead.

In each case, you have venture capitalists trying to make money off something they consider to be doing well and have greater prospects. In each case, the losers potentially would be the ordinary shareholders who are (AMA) or would have been (STO) expected to roll with the offer and accept low-ball bids with plenty of tricky conditions.

My belief is that the Blackstone bid for AMA must be amended so that a premium to fair value is evident on an outright purchase of the whole of AMA. Otherwise, it seems to me that ordinary shareholders will be denied the opportunity of profiting from AMA's dominant market position going forward, just as STO's shareholders would have been denied a similar opportunity in that company's future prospects.

Expand

ok, so what does STO stand for.. sorry, i'm not the smartest person here

AMA Price at posting: 97.5¢ Sentiment: Hold Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

TVN

Tivan and EARTH AI gear up to commence fresh drilling at Sandover lead-silver project, NT

Has uranium run out of steam? An update on nuclear markets & developments ahead in FY25

LLL

Leo Lithium announces major divestment of flagship Goulamina project to Ganfeng

The Big Deal: Free-to-air TV swings the axe, but will it be enough as enormous sports deal bills loom?

KGL

KGL sniffs 19% Cu from drilling at Rockface play in NT

STN

Saturn’s stars have aligned for the gold explorer’s Apollo Project

Climate change to drive market trends to the moon

RHI

Red Hill Minerals Signs $6.5 Million Agreement with Peel Mining to Explore Curnamona Project, NSW

Week 27 Wrap: "Election year" is here as UK Labour win contrasts France; Trump wins immunity & annual report season hushes ASX

ITM

Fast-track assaying yields 182 g/t gold for iTech at new NT play

There are more pages in this discussion • 11 more messages in this thread...

First 25 Last

Add AMA (ASX) to my watchlist

(20min delay)
Last 4.8¢		Change 0.002(4.35%)		Mkt cap ! $86.70M

Open	High	Low	Value	Volume
4.8¢	4.9¢	4.8¢	$30.93K	642.2K

Buyers (Bids)

No.	Vol.	Price($)
3	58694	4.8¢

Sellers (Offers)

Price($)	Vol.	No.
4.9¢	121295	1

View Market Depth

No.	Vol.	Price($)
1	17132	0.048
1	250000	0.047
3	226000	0.046
5	635221	0.045
2	265822	0.044

Price($)	Vol.	No.
0.049	121295	1
0.050	385000	4
0.051	534782	2
0.054	200000	2
0.058	51741	1

Last trade - 16.10pm 05/07/2024 (20 minute delay)

AMA (ASX) Chart

ok, so what does STO stand for.. sorry, i'm not the smartest...

Tivan and EARTH AI gear up to commence fresh drilling at Sandover lead-silver project, NT

Has uranium run out of steam? An update on nuclear markets & developments ahead in FY25

Leo Lithium announces major divestment of flagship Goulamina project to Ganfeng

The Big Deal: Free-to-air TV swings the axe, but will it be enough as enormous sports deal bills loom?

KGL sniffs 19% Cu from drilling at Rockface play in NT

Saturn’s stars have aligned for the gold explorer’s Apollo Project

Climate change to drive market trends to the moon

Red Hill Minerals Signs $6.5 Million Agreement with Peel Mining to Explore Curnamona Project, NSW

Week 27 Wrap: "Election year" is here as UK Labour win contrasts France; Trump wins immunity & annual report season hushes ASX

Fast-track assaying yields 182 g/t gold for iTech at new NT play

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

ok, so what does STO stand for.. sorry, i'm not the smartest...

Top Stories

Tivan and EARTH AI gear up to commence fresh drilling at Sandover lead-silver project, NT

Has uranium run out of steam? An update on nuclear markets & developments ahead in FY25

Leo Lithium announces major divestment of flagship Goulamina project to Ganfeng

The Big Deal: Free-to-air TV swings the axe, but will it be enough as enormous sports deal bills loom?

KGL sniffs 19% Cu from drilling at Rockface play in NT

Saturn’s stars have aligned for the gold explorer’s Apollo Project

Climate change to drive market trends to the moon

Red Hill Minerals Signs $6.5 Million Agreement with Peel Mining to Explore Curnamona Project, NSW

Week 27 Wrap: "Election year" is here as UK Labour win contrasts France; Trump wins immunity & annual report season hushes ASX

Fast-track assaying yields 182 g/t gold for iTech at new NT play

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News