The chairman is at his holding limit. ASX rules stipulate that no shareholder can hold more than 20% of a company before launching a takeover offer. There is a creep provision which allows an entity to obtain over that 20%, but it needs to be accumulated over a period of time. That's why he currently holds over 20%.
My HUNCH only, is the chairman has "tested the waters" with holders such as Farjoy and found they want way too much for their stock ... or more than he's willing to pay. A lot of holders are sitting on huge losses currently, they would need triple the current SP just to break even.
I'm not sure what the CAS Constitution says, but in the advent of a takeover, the hunter would need between 80 to 90% of voting shares to be successful (as mentioned, the real figure would be in the CAS Constitution). The best the chairman can probably do is give the company a loan like he's done. I'd say he's not willing to cough up 30 cents a share (guess). I actually though Farjoy would have increased it's holding over the last couple of months but anyway.
Incidentally, Tadtech is voting against the merger from the Stratex end. Which he is entitled to do obviously, that's his business. Only saying because I think someone asked in a prior post!
CAS Price at posting:
9.8¢ Sentiment: Hold Disclosure: Held
