Mate that was one of the first things I looked for as I too would be up for some massive CGT payment. However, it is all good. See the section on scrip for scrip relief.
Anyway, I expect this all to go through with only an immaterial percentage voting against. But still, a few things grabbed my attention.
I thought this section of the independent report is very interesting. I am not surprised by it. We know the road ahead is all up, so it kind of goes against the grain a bit?
"
Based on our valuation analysis, the impact of lithium price movements is more pronounced on the value of a share in Galaxy than it is for a share in the Proposed Merged Entity. For example, a +/-10% change in the forecast lithium price results in a change of approximately 21%/-23% to the value of a share in Galaxy compared to a 14%/-17% change to the value of a share in the Proposed Merged Entity. Consequently, in a higher lithium price environment than we have assumed, we expect that the value of a share in Galaxy would likely increase by more than the value of a share in the Proposed Merged Entity. Shareholders accepting the Proposed Scheme may therefore be forgoing upside value. Conversely, if lithium prices were to decline, the decrease in the value of a share in Galaxy would be greater than for a share in the Proposed Merged Entity. In this situation, accepting the Proposed Scheme provides Shareholders some downside value protection from falling lithium prices"
They also think right now we are valued at $3.80 on the high side. Right were we are today. Doesn't factor in our value with prices going up very well in my opinion. Every the slimy donut thinks we are worth more than that.
Also, this is very interesting. We will now be exposed to even more tax adding already more to the foreign risk profile of Arg.
"
On 2 June 2021, a bill was passed in the Argentinian Senate to increase the top Argentinian corporate tax rate to 35%. This corporate tax rate had previously been expected to reduce from 30% to 25% with effect from 2021. This change had a material impact on our estimated value of a share in both Galaxy and the Proposed Merged Entity. It is not clear to us the extent to which this change is reflected in the current share prices of either Galaxy or Orocobre at the date of this report"
What they give us, compare to what we give them seems a bit uneasy - straight off the bat it is 50/50ish, but look how much more we bring to the table.
Also, interesting that while ORE has 75% of Nahara, they don;t actually control it. That in essence is a risk to us through anti-EV Toyota.
A few things for us holders to think about.
