'So it could be that an interested party related to Boart may want to take up a bigger stake at a price that nobody else will take up ...'
Good point shark! If I could give your post 10 votes I would ;-)
In the case of APAC/Shougang, if instead of underwriting the rights issue, had they tried to buy a bigger MGX stake from the market they could (potentially) have driven the price higher than the new issue price $0.60 and still might not have been able to obtain the stake they wanted and all the while without helping to improve the value of the company. So underwriting the rights issue at a price nobody wanted was a great strategy.
Let's hope some interested party will employ the same strategy for BLY.
BLY Price at posting:
20.6¢ Sentiment: LT Buy Disclosure: Held
