LLC bid by way of Scheme because with a Scheme they certainty of 100%, and they only need 75% acceptances. With t/o they face risk of not getting to 100%. As they own 43% i think they need to get a bigger % of minorities. Different rules apply to t/o when they already have control.
LLC want 100% because - buying assets at discount - they have detailed inside knowledge of potential - they are buying LLP assets at bottom of market - they just got Valuers to value LLP assets which caused NTA to drop - market for housing and retirement properties is starting to rebound - so now we are heading for growth again - tax benefits - they can group losses of LLP with profits of LLC if they own 100% - cash flow - they can funnel cash back and forth if they own 100% - they were prepared to pay 60c share in c/n - so at 31c in a better market outlook is a bargain - they can more easily transfer their r/v developments from LLC to LLP at any price they choose if own 100%
This offer is opportunistic bid at bottom of market. Its all about transfering the wealth from LLP to LLC !!!
LLP Price at posting:
30.0¢ Sentiment: None Disclosure: Held
