The background is a hostile bid by Red5 to ( which I win about 10% of the shares in Bulleyes) to get rid of the bulleyes directors and place their own guys on on the board. It appears that the hostile takeover can be traced back to Chinese connections , which value bulls eye at 1.6 cents a share. The current directors value Bulleyes at 26 cents a share, and therefore, aren't pleased by the offer. I reckon RDG are acting as a white knight by acquiring 30% of BML, Burns probably a mate of one RDG directors , and They are throwing BML a life line.
Is this good for us shareholders? Well the agreement states that RDG will get all the contracts associated with the mine development, so in that respect they are buying an income stream. It's a surprising turn of events, the market has clearly responded positively at this stage, but it does seem odd that RDG have to invest to win contracts. In the end though, Nothing really surprises me about how cozy it all is in the WA mining sector, how about we get on with it, and improve shareholder value.
RDG Price at posting:
2.4¢ Sentiment: Hold Disclosure: Held
