They are not seeking the approval of the BOD of MEL so it is essentially a Hostile Takeover offer . Given the past history probably very little chance of a Friendly offer getting agreed to .
The offer only requires more than 50.1 % acceptance and they already have nearly 20% in the bag . However they have to get an ASX waiver or get MEL shareholder approval to be able to accept the offer of the shares that Purcell controls in MEL .
MEL at 2.7 cents per share was valued at less than its shares in BYE and its cash . However it does not have much else of much value outside of those assets . The offer is no doubt predatory , MEL is not much more than a piggy bank at the moment .
At the present MAY price it values MEL at 4.4 cents but the question is what would be MAY share price be after the TO with its huge dilution and going forward ?
MAY has some interesting projects but none of them have any clarity of how they will be advanced at this stage . They are still trying to farmout their Cuban drilling prospect . The results of their Beehive seismic is pending and whether or not Santos and / or Total will farm in and drill .
Anyway put a bit of much needed life into the SP today .Maybe others may have their eyes on MEL that have a more transparent valuation than MAY . I doubt the Purcell would be a reluctant seller at the right price .
MEL Price at posting:
3.3¢ Sentiment: None Disclosure: Held
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