Just reading the Independent Expert's report. It's interesting to see that this report is written for the benefit of TAG shareholders. He did not investigate whether the transaction is "fair and reasonable" to CCE shareholders. Naturally enough he concluded that the transaction is fair to current TAG shareholders, because the estimated value of TAG shares will be quite a bit greater after the transaction than before. To me at least that confirms there will be quite a transfer of wealth from CCE to current TAG shareholders.
We consider the Transaction to be fair. The Transaction is fair because the assessed preferred value of a Tag share following the Transaction exceeds the preferred value of a Tag share before the Transaction.
And we will only hold about 26% of TAG after the transaction. I thought we were supposed to be receiving 1/3 (around 33%):
New shares issued to Carnegie Shareholders (Consideration Shares): 58,507,377
Total shares on issue post-Transaction: 222,835,552
They are raising new funds around 10c, and current TAG SP is around this figure too, so that suggests we receive around $5.8 million in value given our 26% holding in TAG. But in exchange we are giving TAG around $4 million in cash and equivalents (see previous post above), so that suggests to me the EMC business is only worth around $1.8 million if you subtract the $4m cash. And we paid $16m for EMC a few years ago?
I'm no financial genius so perhaps someone else can provide a better explanation of the financials.
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