3. The "market value" of shares is exactly what they will be...

3. The "market value" of shares is exactly what they will be sold for by a Deed Administrator. Placing a large volume of shares for sale on market may drive the SP down.... BUT an Administrator will NEVER sell shares for less than what the ASX SP is - not without jumping through many hoops first... this would be illegal, negligent and professional suicide.


The "market value" in the scenario suggested is what a willing buyer is prepared to pay a forced seller.

Many a time an off market buyer has purchased a discounted shareholding in order to minimise the negative impact on the share price. I just wished I had some ready examples to present to you, but that would require more effort than I'm willing to expend just to prove this point.

I did point out an example where a willing seller decided to sell their entire holdings of 11.6% of a company on market and the last of their shares were sold for peanuts compared to the market value of the shares when they embarked on their journey. Without going back through all of the substantial shareholder notices I cannot say what average price the got but when they started the share price was at or above $10 and when they finished it was closer to $1, so potentially they averaged say around $6, had they got an advisor to find willing buyers they potentially could have offloaded the lot for around $8 to $9 less advisor fees.