I was told about TAW from a friend of mine in Singapore back in September 2017 and after doing a bit of research made my first purchase early in October 2017.
It wasn’t until I read Von Yeol’s excellent report about Mark’s presentation at the recent the battery conference and UY Scuti’s posting from Burwill’s Annual Report (Links Attached) that I thought TAW might become the subject of a takeover as it was substantially undervalued in comparison to it’s peers.
https://hotcopper.com.au/threads/ann-tawana-to-spin-out-cowan-yallari-and-mofe-creek-assets.4093936/page-113?post_id=31959430
https://hotcopper.com.au/threads/burwill-holdings-ltd.3901157/page-38?post_id=32138152
My conviction that a takeover might happen comes from the last sentence in UY Scuti’s post
“With the strong earnings from the recently-operated lithium mine in Australia and the joint venture plant in China in 2018, the Group will proactively seize development opportunities in related business areas and strive to deliver greater returns for shareholders.”
With Mark setting out the path of likely events to occur in the future I decided to take a top 20 position and commenced my buying on Tuesday. The key observation that I wanted to pass on was that every time I did a line wipe at 46.5cents supply of another 100,000 plus shares came back within minutes. There is no doubt in my mind that there was a deliberate attempt to suppress the price. This was confirmed on the Wednesday morning when I finished buying that the price quickly dropped to 45.5 cents.
Today’s announcement raised one great concern for me. TAW and AMAL are now essentially joined at the hip. The movement in AMAL’s share price will affect the price an investor will pay for TAW.
Control the AMAL share price and you can position yourself for a cheap takeover post merger. It will be interesting to see if any future announcements will see AMAL’s share price being sold off.
Judging by todays shareholder responses on HC there are some real concerns about how this merger is structured. I ,for one, would prefer to see the merged entity install the 2nd DMS circuit and reach its full valuation potential as opposed to some opportunistic low ball takeover that the major shareholders lob post merger. Mark, looking forward to you explaining this deal in greater detail over coming days.
