Hi Glenn,There is a specific legal requirement for takeovers in...

Hi Glenn,

There is a specific legal requirement for takeovers in s602 of the Corporation Act:

that shareholders are "are given enough information to enable them to assess the merits of the proposal"

it is open for interpretation what constitutes enough information. The company seems to be of the belief that a unanimous director recommendation along with an Independent Expert's Opinion should satisfy shareholders of the merits of the proposal.

You could argue that every other expert opinion has the share value above the offer value: Morningstar at $1.39, Simply Wall Street at $2.04 and Blue Ocean at $2.20. These valuations are without any takeover premium and therefore the IER is suspect. You could also argue that the company has not provided any specific guidance on current and future trading upon which to assess the merits of the offer.

Are there any corporate lawyers out there to provide some guidance on which interpretation the Federal Court would favour?