People need to read between the lines here. I got this from the FIRB website: "The acquisition of assets of an Australian business valued at more than $219 million require approval under section 25 of the Act".
I think it's pretty safe to assume that MEO will not sell all of its assets as part of this deal. It sounds like they will set up a joint venture and sell some assets in to the JV. Based on this information, to require FIRB approval, the deal would have to be greater than $219m in value. That's roughly 50c per share or more for a 'share' of any JV company. Therefore, could MEO get 50c+ in cash and still be left with a percentage of the JV?
Not sure if i'm missing something here?
I can completely understand why people have been scared off by this. And to be honest, there are probably a lot of people in this stock who don't have the stomach for it and should not be in it anyway. But it's important to think of the big picture folks.
MEO Price at posting:
55.0¢ Sentiment: Buy Disclosure: Held
