The takeover recommended by our board would see shareholders given 0.08117 IGas shares for each Dart share.
At current shareprices that amounts to 0.08117 x 116.25 pounds = approx .
That is 17c in Australian $$.
The proposed takeover that our directors were so quick to recommend doesn't come into effect until some time in September, by which time Igas SP could be anywhere. But given the way it has performed for the last few months, there is a reasonable probability it will slump even further.
We've recently seen the slump caused when one Igas shareholder sold just 3.8 million of his shares. When/if the takeover eventuates, the effect of a proportion of Australian shareholders selling their holdings in the English company would really smash the SP of the new entity.
Igas has a lot of debt. Igas shareprice performance is a dog and the deal is ridden with fleas.
I'm having trouble seeing the upside for Dart shareholders.
The lack of vision displayed by our directors is breathtaking - even more so when you remember the way they came to control the company and their explanation for the need for them to do it.
DTE Price at posting:
16.0¢ Sentiment: None Disclosure: Held
