Two conflicting stories as written up by the Fin Review and announced by Matrix to the asx.
I’d suggest the real story is somewhere in between. If this deal values us at $100m as suggested and gives us a 20% stake in the combined entity, it insinuates the whole thing is worth $500m.
The market values us at $50m, meaning AIS’ value is about $450m, for which they get the remaining 80%. Seems like a bad deal for their shareholders only owning $400m of the combined entity. Why would they vote for that?
Of course the sum of the 2 parts could be at a premium, or they might think they’ll be valued higher trading on the asx, but these things are hard to promote to the shareholders voting on it, you won’t know the value till it starts trading.
That’s why I think there is a lot more to this story. As announced to the asx it’ll either be a good deal to us or them, not both, so I can’t see it being voted up.
Very unusual to have a minnow do a reverse takeover, if they want Matrix they may just have to raise capital and buy us out. Certainly owning shares in an unlisted UK company wouldn’t be very palatable to us.
MCE Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)