Ann: Change in substantial holding from AAR, page-5

Hi joeh. Let me address your questions in this way.

• according to the latest announcement AAR has managed to get acceptances or purchase sufficient MXR shares to have gained that 48.5 +% of MXR. That is a fair chunk of the company but it is not yet a total controlling stake.
• If it manages to get over the 50% threshold by a slight fraction then it will have enough voting power to control the decisions of the Board and would be entitled to further positions on the Board so that it was in a controlling position and could dictate what was to happen at MXR.
• If it does not get beyond (say) having 52% of the MXR shareholding then MXR would still exist but it would be very much under the wing (and whim) of AAR. AAR would run MXR as a subordinate company or whatever arrangement they came up with to link the two companies together. I think that if you don't accept their offer then you are still a shareholder in MXR but would find that MXR would be no longer independent.
• The other possibility is that their raid on MXR ends up being successful and by early March AAR is able to announce that it has got a fraction over 90% of the MXR shares and therefore can proceed to compulsory acquisition of all outstanding MXR shares from remaining shareholders. Legally you have no choice but to accept their offer then.
• So anywhere between 50% and 90% is the area where an MXR shareholder who does not want to accept their offer can hang out and say NO!

It is always possible that if they get over 50% they may be satisfied with that. Then again they might some months down the track want to get hold of the whole lot so they come back with a better offer in the hope of getting to over 90% and then to compulsory acquisition.

That is my take on the situation. I hope that helps. Someone else might give their insight if I have missed anything.