The is an Excellent outcome for LPE management.
In a nutshell, Stan and Simon have an undertaking to sell the shares they acquired after the time River Capital put in a bid,
if and only if River get to over 50% of the company. Thats is highly unlikely as they have increased there holdings by just 1-2% to 22% over the period of the bid. IMHO, to get to 50.1% ownership, River would need to bid >30c. Even there I am not sure the directors and largest shareholders would sell.
Why not?
Here are a few reasons.
(1) New CEO who is ex Lend lease and Sunshine City council starts in 10 days.
(2) $40m of state and federal government rebates is about to hit the account and sit on deposit for the next 12 months.
(3) Revenue and Profitability is growing each quarter and cashflow positive.
(4) The biohub $6m payment likelihood of repayment is increasing each month as the interest is paid on time.
(5) Compatible companies are trading at much higher value per customer than LPE. Check out what these guys are doing in NSW and Victoria with Embedded customers.
https://energylocals.com.au/Now that this matter has been cleared up, tectronic is free to start buying once again( they initially paid 12-13c), and after the 4C and annual report are published in the next 3 weeks, directors will be cleared to begin buying again and at the same time the company buy back.
Given the lack of sellers the share price should get much higher than we currently are.
DYOR.
HOLDING TIGHT.
(20min delay)