Well, I wish I could say when the suspension will be lifted. Hopefully soon! According to DB, he is waiting for advice from ASX on certain matters. I just don't know to be honest. But I think DB must know MEC shareholders are tired of waiting.
Yes MEC was the majority shareholder in Advent in 2010. How it got to 48.2% (I think is the precise share right now) was during the "dispute" period when other companies / entities (including BPH) increased their share in Advent whilst MEC had no opportunity to invest further, so our interest fell to a "non-controlling" interest. MEC controlled Advent prior to that, and that's pretty much how the mess we are in now started after the board (illegally) removed DB, lost control and then started down the path of "divestment" of Advent shares.
The share is still 48.2%, which amounts to something like 29% of MEC's capital committed to Advent. It has a maximum of 30% under the PDF Act. We all love our CGT free gains, so I surely we are all keen to keep this. PDFs are meant to invest in a range of ventures and I guess the 30% is designed to ensure "diversification". That's my take on it anyway.
That doesn't mean MEC's interest in Advent will fall to 30%. But seeing MEC cannot take part in the Advent offer going now, and it has no funds anyway, it may very well fall to the 30s% as BPH, GBA and others put money into Advent. DB confirmed to me that under the current situation, BPH's interest in Advent will rise and MEC's interest will fall. I haven't done the calculations to work out by how much. The interest MEC has in Advent will continue to fall, in my understanding, unless the company gets approval to go above the 30% limit (and it needs the money then), or it grows (which it needs money for and probably other investments). I have wondered whether MEC, if it raised money, could invest in Advent via BPH or GBA, but I can't find an answer to that.
I am so sorry to hear about your wife. We have something in common there but two years apart. Going more into PEP11 was our last financial discussion prior to my wife's passing, so I hope I can see it through successfully. If you still hold MEC shares, keep them. I'm sure you will have your second chance to do right by your investment. I hope so, many times over my friend. It seems we both owe it to the beautiful person we should have spent the rest of our lives with to make something of this. It's never guaranteed when so many variables are at play, but my fingers and toes are crossed for us all.
All the best!
MMR Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
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