Ann: EG Deal Update, page-6

i have a great deal of respect for Indian business men and the EG Group did not get to where it is today by luck.

At the end of March Oliver's said they had $650,000 left in cash. I suggest that the rent for 25 Oliver's outlets alone would probably consume this amount in 3 months (say after 1st June) let alone all the other expenses. if that is the case they must be coming to the end of their cash reserves.

Oliver's said they were in breach of the agreement so presumably EG do not have to go ahead with the deal.

Is it correct EG own most of the sites so even if Oliver's did go into Administration the receivers could not sell to anyone else as EG own the
sites and would have to approve a new purchaser? Therefore it seems to me EG have Oliver's in a checkmate situation.

If the above is correct why would then EG Group wish to pay $27.5 million @ 10 cents a share (the original deal) or even 4.1. cents worth $11.91 million as per today's market cap.

Being very clever business men I think EG would wait and let Oliver's go into administration and then pay the receivers (a negotiated fee) and get the whole business for a very small price. A new company would not have the hidden tail of any "pop up surprises".

What do I not get or have missed.