BDO assessed the analysis of the third party expert and subsequently has advised Kasbah that a fundamental error had been identified in the valuation methodology applied in BDO’s expert’s report. The fundamental error affects BDO’s valuation of the Scheme consideration and changes BDO’s opinion of the Scheme to “not fair, but reasonable” <<< reasonable for who? for Kasbah shareholders.
Accordingly, Kasbah considers that the condition precedent requiring approval of the Scheme by the Federal Court of Australia, is currently incapable of being satisfied in relation to the Scheme approved by shareholders on Wednesday, 23 November 2016. As required by the Scheme Implementation Agreement (SIA), the Company will now consult in good faith with AMR to determine if there is a means for the Scheme or an alternative transaction to be agreed between the parties.
Kasbah intends to seek an adjournment to the second court hearing scheduled for Monday 12 December 2016 until further notice.
KAS Price at posting:
2.4¢ Sentiment: Hold Disclosure: Held
