Ann: Tawana & Alliance to Merge and Capital Raising & SIA, page-151

I think this deal (like most MC-driven strategies) will grow on you.

The current AMAL share price reflects a rudderless period with poor leadership (now no MD!); no direct mining expertise (for a miner?) and no greater vision than riding TAW/MC's coat-tails... plus all the lack of confirmation (resource upgrade; production; offtakes; financing; etc) that has been holding back TAW.

So it might be reasonable to expect that following today's news... the obvious immediate short-term beneficiaries should be the AMAL shareholders - which should reflect in their SP - and hence increase the value of what "Exchange" we get.

Masterstroke. Doesn't it seem easier to 'solve' their problems - and in the process underpin the TAW price for the next 6 months...?

They are even taking the opportunity to get some (hopefully) strategic long-term players - in both Singapore and Australia - toe-dipping at these levels...

Particularly when we know that there is much short-term good news to come...


Also IMO I suspect that the SpinCo strategy was quickly improvised to do 2 things. Obviously it parks the non-Bald-Hill assets to simplify the merger. Simple. Expedient. But as others have pointed out, the MD of the combined group has always seen Cowan as the future jewel in the crown for this project. Cowan must be more valuable to the new merged group than under any other scenario (given it's proximity to the Bald Hill infrastructure). And, the MD and (TAW-dominated) Board will decide on the future growth strategies...

I for one would not expect the unlisted SpinCo to go to the expense of listing when a future attractive takeover would make more sense for all parties. (Why 'attractive'...? Just look who will be driving it and their greater relative personal interest in SpinCo...).

This can fly once the nervous nellies exit next week.