Ann: Havilah Secures Funding of up to $100M from GFG Alliance, page-109

What HAV's Board should've IMO said to GFG:

"The board believes that GFG's proposal is opportunistic and materially undervalues the company and does not attribute fair value to HAV’s assets, nor their significant future upside. The board therefore unanimously concluded to reject this proposal unequivocally. Shareholders are urged to take no action in respect of this proposal."

Instead, in an apparent betrayal of long-term and loyal shareholders, HAV's Board inexplicably endorses the GFG proposal.

Why couldn't GFG do the honourable thing and use either of "the most commonly used takeover structures: an off-market takeover bid (for either a company or trust), or a scheme of arrangement (for a company)"?

To be honest, I was blindsided by the "less commonly used takeover structure: a shareholder-approved transaction”; IMO a low act. Not an investment risk many foresee.

The disrespect with which GFG and the HAV Board have treated HAV Shareholders is disgraceful. Have they learnt nothing from the Banking Royal Commission? Puts into sharp focus the negative publicity Gupta has received in his home country of India,by UK's Financial Times and Channel 7 in Adelaide to name a few.

@Clark888 after reading your post, came across the following article:

'ASIC warns against "novel" deal structures and dummy underwriting in relation to M&A'- Clayton Utz

http://www.mondaq.com/australia/x/341390/M+A+Private%20equity/ASIC+warns+against+novel+deal+structures+and+dummy+underwriting+in+relation+to+MA

'ASIC's concern appears to be that exceptions in section 611 of the Corporations Act may deliberately be used to acquire more than 20% without having to make a takeover bid.'

I recall you posting: 'If Havilah shareholders are unable to participate in any premium, they may lose faith in HAV Management, its Directors and the market as a whole.'

Many of us had lost faith in the first 2 long ago. If this deal goes through, faith in the market goes down the toilet too. If GFG is prepared to treat HAV shareholders so appallingly now, imagine what it will be like as minority shareholders. Who knows what diminishing share of HAV our investment will represent over time under GFG? Giles bullying shareholders with his 20% holding will pale in comparison.

DYOR