Since the "independent expert" values the share between $0.13...

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lteh

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11/03/23

14:14

Post #: 66712924
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Originally posted by ballybay: ↑

Makes for interesting reading.

So 75% of the debt holders have agreed to sell the SSF debt to Allegro for less than dollar value. Shouldn't we be told how much of a hair cut they are taking?

So none of the hedge funds have agreed to sell their shareholdings to Allegro...that's good news for all shareholders.

So the only shares Allegro can bank on as of today are the boards performance rights or freebies that they havent even earned yet and that's 4.3% of the company AMAZING!

read it yourselves below;

4.2 Conditions of Allegro's Offer Allegro's 1 50.1% minimum acceptance condition ss at the date of this Target's Statement, approximately 94% of S&G Shares are held by hedge funds that also own the entirety of the SSF. As at the date of this Target's Statement, none of these shareholders have publicly stated whether they will accept Allegro's Offer. Allegro has stated in its Bidder's Statement13 that an entity wholly-owned by Allegro Fund IV has made private treaty offers to the SSF lenders to acquire their debt interests in the SSF for a purchase price of less than 100 cents for every dollar outstanding under the SSF, the purchase price of which will be reduced by the Offer Consideration received by the relevant SSF lender for any of their S&G Shares to the extent accepted into Allegro's Offer. Allegro has additionally stated in its Bidder's Statement that SSF lenders representing more than 75% of the value of the SSF have already accepted the private treaty debt offers and that Allegro Funds is continuing to engage with all SSF lenders regarding the potential sale of their debt. These accepting SSF lenders also in aggregate own or control more than 75% of S&G’s Shares.

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Since the "independent expert" values the share between $0.13 and $0.40, can the directors be sued for reporting a net asset value of $1.43 per share in the latest half-yearly report? At least, should they and the auditor be investigated? The gap is just way too wide, more than 10 times the bottom valuation.

BTW, with increasing interest rates, it shouldn't be surprising if the debt is purchased "at a discount". Bond prices fall as interest rates rise.

SGH Price at posting: 55.0¢ Sentiment: Hold Disclosure: Held
5 Upvote

0 Great analysis

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