I have been of the impression that DNA / OCP's plan is a sale of both assets, based on:
1) On 12/16/18 when Joey Lim stepped down, the company said it will commence a search for a COO and Deputy CEO; but 4 months there has been no update 2) This was re-enforced, on the 3/19/19 announcement when Joey was officially fired and they said they will commence a process to find a permanent CEO; what happened to the Deputy CEO search? 3) On 3/4/19 the company stated that Ben Lim will remain as Interim CEO until the end of March (why until the end of the strategic review, who takes over after?) 4) In the HY results announcement DNA bi-frucates capital mgmt (the mega-bank loan) from the strategic review implying there is more to the strategic review than just re-fi'ing the bank loan (which they seem to have done) 5) The 1/12 Sydney Morning Herald article where Ben Reichel says - ""There's been a lot of approaches made to us, people have various ideas about buying one or both of the assets of joint-venturing, buying part of the assets." and throws out the A$.14 of net tangible assets per share number (maybe as a guide) 6) Yes the lease dispute creates uncertainty but this may not scare off an individual or company already established in Cambodia or Poipet and hopefully just results in a large discount (which is fine). The SMH article implies that some individual(s) has been interested in Star Vegas. At one point DNA told me the slots in Star Vegas were worth A$20MM, so any value from there would be fine.
Similar to Htran's comments I find the timing of this filling odd. Two answers come to mind 1) Joey is incompentent (probable) and it took him this long to figure out and 2) Joey thought he could work w/ OCP (who has almost 50% vote now excluding the Thai Vendor's shares) but now the company wants to recommend something to shareholders which Joey does not agree with and has asked for an injunction on OCP voting their shares.
I guess the one item I don't understand is if / how long this might delay the company making a potential announcement. Can the company have a shareholder vote with this overhang?
Additionally, I'd be curious if any members were familiar with the ASX take-over code. There are certain exemptions but they don't really address this situation. I'd find it hard for this to count as a takeover though as the margin loan was always for more than 20% of the shares outstanding so if this were really treated as a take-over DNA the original structure would never have worked.
W/r/t to if OCP had to make a take-over offer, I found the following: "The consideration offered for securities in the bid class under a takeover bid must equal or exceed the maximum consideration that the bidder or an associate provided, or agreed to provide, for a security in the bid class under any purchase or agreement during the 4 months before the date of the bid." - It looks like OCP bought shares for A$.0931 on 12/31/18.
DNA Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held
