Ann: BWX response to claim from Waterloo Capital Partners, page-53

Hi Cirrusplane,
See AFR article 18/7. Bennelong state that other parties have entered the data room, they are working closely with the board and that the offer is undervalue. They would be comfortable with the holding should no offer reflect proper value.
See disallowed/business/companies/how-a...fit-bwx-met-its-waterloo-20180711-p4zqqw.html
Allegations that shareholders had significant savings figures withheld that were provided to private equity investors. The below are a couple of quotes from the article - need to read the whole article for complete context. Note they are allegations. They indicate that the company may be worth more than what was presented. Those entering the data room may pick up on this.

"Humble confirmed to shareholders the company was "on track" to hit a $1 million cost-saving target. But Fabregas' pile of documents includes a presentation used to court private equity investors where savings of $4.7 million were spruiked as well as another $2.6 million in revenue synergies.
Likewise Fabregas claims the company provided brand by brand profit descriptions to the private equity investors whilst refusing to do so for local investors or the analysts expressing frustration at the lack of detail on the earnings call."
"In the face of the presented numbers, the share price tanked from above $7 to less than $5 in a day.
The price drop was noted by Finlay when he wrote to Fabregas on February 25 outlining how a management buyout could work. He proposed a deal that might see the managers pitch up to $7 a share to buy the business.

"Clearly we would start with an offer price more around the $6.50 level. No one knows the business better than us," he says in the email."​