My gut feel is that if minority shareholders voted in favour of the current proposal, that FMS and BBIG will have a binding agreement in place in a matter of months and well before the 30 September 2020 deadline. I believe that if this proposal passes then minority shareholders won't have any opportunity for further say in the matter. BBIG would have all their approvals required for the Act and could proceed with their railway. This is why I believe it is important that minority shareholders ONLY accept a deal that is extremely favourable, even if it is happens as late as next September .
In relation to the PIOP Mining Area Proponent, the short answer is that I'm not sure who it would be at each stage, though I'm confident that if this deal goes through, BBIG/Todd will have control of the Proponent (whether this is through FMS by virtue of the current proposal or through PIOP MineCo) to meet requirements under the Act.
If the current proposal is accepted by minority shareholders, the only further say we would get is choosing whether BBIG retains part of the company or converts to a royalty stream. Though based on recent FMS history, both are likely to be unappealing and we probably won't have any avenues for a third option.
Like many others have posted in this thread, it would take a generous upfront payments and guaranteed minimum net royalties for me to vote in favour of a deal between FMS and BBIG.
The way FMS and the FMS appointed directors have treated minority shareholders (e.g. delisting proposal ruled on by the Takeovers Panel, draconian conditions for the EGM, etc.), I think I would have a huge smile on my face if BBIG don't have a binding agreement with FMS come 1 October 2020. Perhaps without their precious railway Todd would cut their losses and reduce their holding in FMS, allow the appointment of a majority of independent directors and incentivise them by FMS shares or options and seek to build the value of the shares. I'm happy to wait another 10 years for PIOP to be developed if it means FMS reaches its full potential for ALL shareholders.
FMS Price at posting:
5.5¢ Sentiment: Hold Disclosure: Held
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