I think they’ll just go ahead and pay out Tranche 2 at this stage. I hold a small LLL position, and honestly, I’d rather see the capital returned via dividend so I can decide where to reinvest, rather than the company making that choice for me. I suspect many other LLL holders feel the same way.
That said, I wouldn’t be at all surprised if we get gobbled up by someone else. The idea that someone would pay a premium just for a stake in Adina/Renard, instead of buying the whole thing and offloading what they don’t need, is starting to seem absurd. If someone is genuinely willing to put up US$250M to develop Adina/Renard for half ownership, then it’s hard to believe they wouldn’t spend an extra US$80M to fully acquire WR1 and secure 100% ownership, which includes US$25m worth of PWM shares. That would be an 80% premium to the current share price, and I think it would go through, regardless of what some of the diehards might argue.
What strategic is going to pay $250m for half, but won't pay a net US$55m extra to take the lot?
WR1 Price at posting:
27.0¢ Sentiment: Hold Disclosure: Held
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