Not the best....From the "Experts Report" The Independent Expert...

Not the best....From the "Experts Report"

The Independent Expert has reached this conclusion on the basis that the Scheme is not fair but that it is reasonable......

- our assessed value of the Scheme Consideration is less than our assessed value range for Prime shares on a 100% controlling interest basis.

- whilst the value of the Scheme Consideration provides Prime shareholders with a modest premium above the listed market price of Prime shares immediately before the announcement of the Scheme, the premium is significantly below those observed in other change of control transactions

- SWM has significantly higher debt levels than Prime. This higher debt level means that any significant decline in the merged group’s profitability could have significant adverse consequences for the value of SWM shares. In contrast, Prime is expected to repay all its debt during FY20

- SWM’s higher debt level also means that SWM is unlikely to reinstate dividend payments anytime soon, as free cash flow is more likely to be directed towards debt repayments. In contrast, Prime is more likely to be in a position to reinstate dividends, although management may be reluctant to do so given the impact of declining television advertising revenues on profitability

Hopefully another bid gets put up.