Is the offer not 0.365 plus the 0.07 dividend then?Reading the...

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firecall

14 Posts.

25/05/19

15:17

Post #: 38742770
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Originally posted by Downanout: ↑

You will have the opportunity to vote your shares, at the scheme meeting, but if the scheme is approved, eventually your shares will be compulsorily acquired at the approved price.

"Under a scheme of arrangement, approvals are required from both target security holders and the Court.The Court must first approve the despatch of the scheme booklet to members and the convening of the meeting of target security holders. For the scheme to be approved, a resolution in favour must be passed at meetings of each class of target shareholders by both:

75% of the votes cast on the resolution;
and more than 50% in number of the target shareholders voting on the resolution (in person or by proxy).

If target shareholders approve the scheme, the target will then return to Court for a second time to seek Court orders approving the scheme."

https://www.minterellison.com/articles/takeover-bid-v-scheme-of-arrangement-structuring-a-friendly-acquisition

I am pretty underwhelmed by the deal. They are not paying much of a control premium to acquire LGD.
It looks opportunistic to me.
If was $0.365 cash plus a 7 cent fully franked dividend, then I would be more enthusiastic.

(By the way, I used the delay entailed in the compulsory acquisition process to my advantage when WMC was taken over. It delayed the acquisition of my shares and hence the realization of a capital gain into the next financial year, which was to my advantage at the time.)

Cheers

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Is the offer not 0.365 plus the 0.07 dividend then?

Reading the PDF, I took that to mean they would be:
Legend shareholders offered $0.365 per share, representing a 22.1% premium to the one-month volume-weighted average price of Legend's shares
Legend may declare and pay a fully franked special dividend of up to 7 cents per share in cash which wouldreduce the Scheme Consideration by the amount of any such special dividend
LGD Price at posting: 37.5¢ Sentiment: None Disclosure: Not Held
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Is the offer not 0.365 plus the 0.07 dividend then?Reading the...

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