re: Ann: Third Supplementary Target's Sta... My conclusions:i....

re: Ann: Third Supplementary Target's Sta... My conclusions:

i. According to Grant Thornton's valuation method the MAK offer is now fair and reasonable on a bare basis ie fits within a low to high range for valuation of UCL

ii. According to Grant Thornton whilst on their valuation methodology the MAK is now fair and reasonable that assessment is compromised by quite a number of factors

iii. My conclusion: The offer is barely fair and reasonable but reaches that basic threshold on GT's valuation. Most long term holders tend to consider the GT valuation was too low and thus probably won't be persuaded.

a. UCL acknowledge that the GT methodology grants fair and reasonable status to the revised MAK offer.

b. UCL argue that irrespective of the GT conclusion MAK are not the best party to entrust with the management of Sandpiper. Ie they contend that the competence aspect of a long term investors concerns has not been satisfied.

c. My conclusion. Between the GT and UCL statements it remains the case that there is no compelling argument to accept MAK shares. Financially it is not a disaster - on the GT basis you would be swapping $1 of apple juice for about $1 of orange juice but that is it. Ie there is no case established that there is any reason to think it is better to hold orange cordial than lemon cordial. GT give no real support to MAK's arguments to the contrary.

The UCL presentation includes a strong visual presentation on page 7 of their reasons why it is better to entrust your ongoing investment with UCL management than MAK management. It vividly illustrates the very things that have MAK shareholders on Hotcopper so disillusioned with their company.

I personally think MAK's arguments re dilution risk carry some merit and if they had something nailed down on developing Wonarah then they would be close to having a compelling offer but the simple fact is that they do not.

To accept MAK now would not be unreasonable at all on a valuation basis. However adding additional aspects to it we find that the high negative sentiment about MAK management introduces a whole new level of risk.

I'm going to continue holding and seek to play the market to my advantage re Sandpiper.