yep you guys are spot-on.
this process is not new!
it has been played out many times on the ASX
once over 50% BPT will get control of Board.
if they don't get to 90%, it will depend on the number of shares outstanding, and importantly the number of s/h left on the register.
then the important thing imo, is WHO is left standing.
IF, IF, IF you are left with a strong s/h with money, you are much better off than if left with a whole heap of small individual s/h.
(witness Premier Investments in Country ROad -only one that springs to mind).
BPT will try to pressure you guys.
it will try to delist- big big big disadvantage.
A big minority s/h (like Directors) will fight that!
then suddenly ADE will need to raise capital - gee golly, BPT will underwrite any shortfall !?!
BPT will use the "creep" provisions (named after Beach), and slowly move up the register.
then they will come back in say 12mths and begrudgingly pay a bit more to buyout the directors, and get over that 90% level.
But for BPT its a good deal, because it buys 50% at 20c and a the rest for a little bit more. Still better than exercising those options they missed out on, at 40c !
cheers
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