The issue with PGF is that its not trading at a massive premium unlike WAM. So offering its scrip will not be as fair/favourable to PGF. The argument could be that taking over it will increase the asset base and reduce the expenses ratio. The other justification is the absorption of franking credits. It depends how much PM Capital wants it.
My feeling is WAM has probably won the battle and will push for the break fee to be waived as soon as they reach 20pc as they would effectively block PGF scheme. Alternatively PGF could launch a similar off market takeover and try to grab as much as they can.
PAF Price at posting:
$1.11 Sentiment: Hold Disclosure: Held
