re: Ann: Proposed Transaction with MPIF - Not... that the Bao...

re: Ann: Proposed Transaction with MPIF - Not... that the Bao unitholders will approve the deal is a no brainer.The real question is whether the MPIF shareholders will. That one is much harder as a 75% in favour vote is required.Interesting to note that the Independent Experts report to the MPIF unitholders valued the distribution stopper at about $1.5 million and I reckon that BAO is effectively paying more than that to MPIF in buying the sale assets at a much higher price than they would fetch from an arms length sale,so logic suggests that the deal should go through. A really smart MPIF unitholder would approve the deal,get the 37 cents cash and use it to buy about 8 BAO shares. Effectively they would be selling the same assets at a 20% disc to NTA and buying them back at a 70% discount!
A better deal for BAO unitholders would have been to offer $1.5 million in cash to MPIF in return for them dropping the distribution stopper.
My best guess is that the distribution stopper is currently costing BAOs market cap about $30 million (4 cents per share)