GSW (ASX) Ann: Response to ASX Query

Originally posted by Distressed Player ↑

Bettt et al on this forum espousing the imminent takeover that's going to burn the shorts - which by the way I understand are at the margin versus the free float here - I am sorry but IMO politely you are sadly mistaken if you think there's a get out of jail free card being handed out here in the form of a takeover anywhere even near the last traded GSW price on the ASX.

I say this having some real life experience in M&A (~20 years) at the coal face and also specifically within the tech space.

I may share some more detailed views later in the week but let me just say this as a basic entree to try to put this message in context and that doesn't need any strategic M&A experience to understand.

For a company to be taken out the acquirer needs to get > 89.99% to trigger compulsory acquisition of the remaining minorities.

Look at the combined CEO and Executive Chair shareholding in % terms. What is it ?

Why would a company's say that it was a risk that it could be taken out prematurely before full value was realized IF the executive management team alone could block the compulsory acquisition threshold being reached ?

It is pretty simple, think about it and the MO of the company promoting this as a 'risk' for investors.

DYOR (legal, commercial and other)

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I am sorry.. but it doesn't matter how much Preliminary homework you do this week to pretend to understand the subject, as a desperate attempt to sway things in the last minute before opening. That research was really left all too late, after you decided to short. As bettt said - it is over. What you guys fail to realise is that they had other companies sniffing out to see a take-over early-on (more than a few months back, actually from the very beginning), it was a legitimate risk because although the real value was after rolling out contracts etc, if they offered enough it could be off the table. They held tight though because that have a Tapestry of Vision. However, what if said take-over becomes so disgustingly generous? That is a very real risk. Those who haven't done their research, also fail to realise one of the world's biggest U.S. VC's wanted getswift early on, however before they had a chance they went to ASX because they wanted to get the ball rolling - they weren't going to wait for the world to come to them, and in doing so it turned negotiations from months to weeks. I am sorry, but the take-over is very real, and it is going to be very generous. Personally, I'm torn between not wanting the take-over to come to fruition so we can see quantum revenue later this year, and accepting the take-over since I know it will be so generous and yes - there will be satisfaction in watching shorters roasting this time around more than any other.