It's a good question - what do MIN do. MIN are out of the money but we all know MIN are acting with Gina. Will MIN vote against - I don't think so.
If they did vote against - with 13% and any other retailers, they will most likely have a blocking stake. Why, because SQM and Hancock can't vote, meaning their 13.56% is effectively 21.80%. Remember, you only need 75% to prevent a scheme. It's likely not all the register will vote. If 87% vote, then that effective interest increases to 25.05% and they would have a blocking stake by themselves.
That means it reverts to the off-market takeover offer at $3.65. At which point, SQM/Hancock will get Creasy's, Adelphi and Directors' shares, taking their interest to 60.78%. Not enough for a compulsory takeover but enough for control of the company.
Do MIN stick it out and fight for an interest - not too sure. We know they likely want mining services - so a head nod perhaps and they vote for, arguing that if they didn't they would lose $0.05.
I'm changing to sell unless you hold on longer for 12 month capital gains purposes. I see better options in other lithium stocks.
Interests
%
Vote in Scheme
Effective Interest
1
SQM
19.42%
No
2
Hancock
18.37%
No
3
MIN
13.56%
YES
21.80%
4
Creasy
12.84%
YES
20.64%
5
Adelphi
10.15%
YES
16.32%
6
Directors
2.10%
YES
3.38%
7
8
Control in Takeover (SQM/HAN)
60.78%
AZS Price at posting:
$3.68 Sentiment: Sell Disclosure: Held
