""They have full control of the company. Why would they buy it...

""They have full control of the company. Why would they buy it out and give any cash to minority holders?"

1. To alleviate themselves of the administration and responsibilities of being a public company.
2. Profit. They buy it now cheaply and retain all future profits for themselves, assuming earnings increase going forward."


Seems so simple but not IMO real world and not historical MO.

1- No real burden and shell has value to justify. Realistically still have 90% same controls required as a unlisted public company just not ASX specific rules. Yes if they go back to private company they have less administrative burden but then lose acces to markets and cash raising ability if they want to use vehicle. That lsited vehicle a-clean shell worth a couple of mill so worth retaining / maintaining . So how to clean up the legal case when I guess you have a very cashed up opponent on a point of principal who won't let go unless gets some form of payment knowing it will cost YOW hundreds of thousands in legals , possibly flighst for witnesses ( probably unwilling witnesses now as have nothing to do with business) . USA legal stouches are best avoided unless you are the big dog and have plenty of revenue to keep em going. That legal case may very well prevent on sale of business?

2 They IMO can use fees to releated entities and Dir Fees , wages advisory etc etc to mop up any extra cash YOW can generate so not likely minority holders wiill get their hands on it IMO. Then if should ever become a real cash generator they could lend to their other shells .

IMO these holders are not company makers they are company corporate raiders ( destroyers) by assett stripping .IMO that is their trade be it because of simplicity or not having the time and skillset to run and grow business but history shows IMO they want to buy, strip sell shell or in past backdoor and repeat . If they now are business builders ( of are stuck and have to because of buy in price etc) then you have to believe they have skills and motivation to do that. Time will tell.

None of this is officially dodgy if done correctly but not the norm and as such should be looked at with a different investment horizon IMO and suitable discount applied like you are seeing in marketplace as no one but insiders knows true direction and ability to get any possible future profits out. You have to work out if it is window dresssing to onsell or if it is truely a growing sustainable business. I am not sure as so much depends on way it is managed and marketplace, court case outstanding and key clients continueing . Kinder and others have control of the space and pricing marketing power along with shelfspace .. YOW must get digital asset driving growth as they can't compete in store on planogram and they haven't managed it to date except in short bursts at great cost IMO

As you have seen these guys are smart enough to "steal" company cheaply to get control but did some damage by management losing focus IMO and you would hardly expect them to be generous to other holders . If they are smart enough to put one over on a listed company managemnt then I don't like minority holders chance of putting up much of a fight no matter what direction they decide to do with YOW.

IMO they bought and bid on YOW for cash and some of that went out the door on distribution and now they are stuck with business they are trying to make appear as a turnaround . It got complicated for them as not a lot of natural fit buyers ( bolt on) for the choccy business as it really is a digital business that has choccy attached as tool IMO. Sales shrunk and cut costs out of business but it is a volume business so now to keep costs low and get volume back. without the required marketing cost as per unit it is too expensive. ?? That is the game

So I am happy for you to put up any research on current owners and management showing their sucess in returning funds to holders of company and growing a business they have bought? how results of their other vehicles and the way they reward holders?

Are you smarter and more determined than a corporate raider ? How will riding on their coat-tails give me a return? Will teh markeyt ever value it a s anormal company with normal metrics ? That is the questions you should ask yourself .