This has all the hallmarks of a game of who blinks first:WestOz...

This has all the hallmarks of a game of who blinks first:

• WestOz almost certainly have the power to prevent the Scheme receiving shareholder approval. WestOz are holding out for an increase in consideration, which in return they would change their No vote to Yes;
• The bidder may be reckoning that if they hold out that WestOz will fold and accept $1.01 because fund performance will take an instant hit if the Scheme is not approved and WestOz will be locked into a hostile minority shareholding that they can’t readily liquidate for $1.01;
• WestOz’s performance outperform management fee is calculated on a 30 June year basis so time is on their side in that they have until 30 June 2021 to recover any short term value loss. Apex and management won’t want to muck around for another year seeking to harm WestOz if the Scheme fails. WestOz in any case can boost valuation of their funds by continuing to buy ZEN shares on market and pushing up the share price if the Scheme fails.
• Are PEP prepared to let the Scheme fail? Apex have already squeezed PEP’s percentage share of the bidder and they don’t need to involve PEP in a new Scheme to follow up a failed first Scheme.
• Does WestOz have other investment opportunities identified that they could deploy the ZEN proceeds into that would earn a superior return than staying in ZEN for the next few years or until another higher offer emerges?
• Given the target returns that Private Equity firms chase, presumably they would rather pay more to secure the outcome than let the opportunity lapse, not to mention walking away from the dollars they have spent on the Scheme so far.
• Has anyone seen any comment on how Microequities Asset Management (with a disclosed 8.66% shareholding) sees the Scheme? If they were also to early vote No, the bidder would surely be forced to increase the Scheme consideration.
• Or maybe there are discussions happening behind the scenes that has agreed in principle an increased scheme consideration that is delayed being announced while it is going through sign off by all the stakeholders in the multi headed bidder?