Ann: Proposed Merger with GTC Legal Group, page-17

First 17 Last

Share
Profile

Follow
bigmac2013

51 Posts.

19

20/10/22

18:20

Post #: 64306541
Share

Originally posted by Bigstockpunter: ↑

Umm - not sure this is a great transaction for AFL shareholders.

50m new shares issues at 20c each. If the transaction had been done at 40c per share then only 25m would be issued thereby improving the existing shareholders position as the dilution would have been less. And the EBITDA accretive % would have been much more significant.

The issue of shares at 20c is a contradiction to the rational for the buy back. If the buy back is announced at 25c for the reason the shares are cheap how do you justify issuing 50 m shares at 20c?

Another purported reason for the transaction is that it will provide "Greater liquidity for shareholders through increased market capitalisation and capital market significance". The 50m shares that are being issued are being held in escrow for 12 months. How does this achieve greater liquidity?

Confirmation that the original thesis of being a family law specialist was flawed. Operate for 3 years and the share price is pretty much back at issue price. So the point about the "Strengthened board and leadership team with proven track records in legal market disruption and consolidation" must refer to the GTC team?

AFL is on its first strike for the remuneration report. I wonder if they get a second at the upcoming AGM?

I note incentives at ALF are driven off EBITDA hurdles. This acquisition should result in the hurdle being met. But there is no proviso "providing no more shares are issued"..... I wonder if the independent expert will address this or this potential conflict was considered (with ALF director's recusing themselves") when the AFL board considered this. Perhaps not due to the statement "The Proposed Merger is unanimously endorsed and supported by the Board of AFL."

Separately, how are the lawyers at AFL going to react. As with any change some will take it positively but I am concerned about those lawyers who joined a family law firm because they wanted to practice family law (and nothing else) and are now in a very general personal services firm. It is so true for professional services firms - the entire firm leaves everyday and the firm only has value if they turn up the following day. How many will jump ship and start their own family law firm?

The flip side is that it is perhaps an opportunity to buy a good business (and its management) that is truly disruptive and in a growth phase. But if it was so good why would the existing owners sell?

Thoughts on the above?

Best BSP

GLTAH, DYOR, NFA

Expand

no good answer really, but definitely not a deal AFL made from a position of strength.

AFL Price at posting: 21.0¢ Sentiment: Sell Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

MGU

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

BOE

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

GRX

GreenX picks up prospective copper project in Germany

VMT

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

NXG

Cost blow-out for Rook I uranium project sees share plummet for NexGen

There are more pages in this discussion • 1 more message in this thread...

First 17 Last

Add AFL (ASX) to my watchlist

(20min delay)
Last 13.5¢		Change 0.000(0.00%)		Mkt cap ! $12.32M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

Buyers (Bids)

No.	Vol.	Price($)
3	179000	12.5¢

Sellers (Offers)

Price($)	Vol.	No.
13.5¢	33986	2

View Market Depth

No.	Vol.	Price($)
3	179000	0.125
4	174454	0.120
1	26095	0.110
1	3500	0.105
0	0	0.000

Price($)	Vol.	No.
0.135	33986	2
0.140	190431	2
0.150	363313	1
0.170	8000	1
0.175	40500	1

Last trade - 10.00am 02/08/2024 (20 minute delay)

AFL (ASX) Chart

Day chart unavailable

Ann: Proposed Merger with GTC Legal Group, page-17

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

GreenX picks up prospective copper project in Germany

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Proposed Merger with GTC Legal Group, page-17

Top Stories

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

GreenX picks up prospective copper project in Germany

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News