Time will tell if the mutual agreement was in the best interests of shareholders.
I think they will we working overtime to sign the scheme implementation agreement and to announce it before Lowe's departure and the EGM.
A successful scheme would take 3-4 months absolute minimum. A low offer could easily be surpassed by a rising LLL price. The agreement is likely to lock in a $2M break fee.
IMO Fraser and Lowe are either extremely confident the scheme will be accepted or they know their days are numbered and are intent on making things as difficult as possible for a potential new board.
If the scheme is unsuccessful but they sell Morilla (more likely), Lowe still walks away with a large payment. With a new board intent on distributing cash and escrowed shares, Lowe knows his input would be reduced to mundane compliance work, almost certainly on a reduced package.
The best outcome would be the board surprising us with an acceptable bidders offer. My gut feeling is things won't end this way.
FFX Price at posting:
20.0¢ Sentiment: None Disclosure: Held
