Agree with you mostly, but the announcement that the directors of AZZ made was that there was an executed dale and purchase agreement with no conditions precedent for cash for US $250M.
With a then market cap of $75M AUD, on the basis of the statements made there was every reason to be hyped up over.
The issue here is not that hotcopper posters accepted this statements and hyped on about it on that basis - the ASX should be regulated enough that investors can accept statements to be substantiated.
The question here is how substantiated those statements were in the first place and whether. This is what ASIC should be investigating.
I have made my case to them and urge you to as well. No one here was fooled by anything other than how risky the execution of that sale and purchase was.
The understanding of no conditions precedent is explicit. It means the agreement should have been executed regardless of anything and was legallying binding to that extent.
Which means AZZ should have recourse to the counterparty if the deal fell through as it has. If they were not of financial standing, then this is a material fact/risk to the transaction and we should have been made aware of this.
However you look at this, based on the information made known to investors at the time this was a deal of a lifetime and we were the ones that were smart enough to invest in it.
ASIC has an obligation to investigate and find out why the material terms of this transaction and financial standing of counterparty were not disclosed to the market. As though it isn't bad enough losing money on this, a little bit of our paychecks each week go to fund ASIC too.
Make your case to them. We deserve an investigation
AZZ Price at posting:
50.0¢ Sentiment: Sell Disclosure: Held
