My understanding is that the HYTOs and HYTOAs are of equal...

First 2 Last

Share
Profile

Follow
cocoman

14,354 Posts.

362

03/11/24

21:13

Post #: 76440812
Share
Originally posted by JVP73: ↑

I was looking at the subscription offer in a little more detail with particular focus on what ownership Fortescue might have after they exercised the free-attaching options. What I found was that Fortescue would ultimately end up with a 49.75% stake in Hyterrra.

This prompts the question of whether Fortescue might look at a formal TO offer. In debating this line of questioning with ChatGPT, the argument fell more in favor of this continuing to be a strategic investment, typical of partners only seeking 49.75% stake. Below was ChatGPT's rationale.

Keen to read what other holders and potential investors might think. Strategic Investment or TO?

ChatGPT generated:
Based on the available information, it is more likely that Fortescue is not actively seeking a full takeover of HyTerra at this time. Here are a few key indicators supporting this view:
Strategic Investment Rather Than a Takeover Bid: Fortescue’s proposed 39.7% stake, with an option to reach 49.75%, appears structured as a strategic investment rather than an outright acquisition. This substantial but minority shareholding suggests they aim to exert influence and gain a strong position in HyTerra without full control.
Shareholder Approval Structure: Since Fortescue is seeking shareholder approval for this specific investment through an Extraordinary General Meeting (EGM), it reflects a collaborative approach rather than a unilateral takeover bid. Shareholder approval is often used for partnerships or significant investments that don’t constitute a takeover but still require transparency and consent.
Options Structure: Fortescue’s additional free-attaching options, exercisable within three years, offer flexibility to increase their ownership to 49.75% without immediately triggering a full acquisition. This approach aligns more with establishing a long-term stake with potential control rather than immediate ownership.
Strategic Alliance Potential: Fortescue's involvement brings not just capital but also strategic support, suggesting a collaborative development approach. Often, such arrangements indicate a focus on partnership and mutual benefits rather than an acquisition-driven approach.
No Takeover Premium: Traditional takeovers include a premium to incentivize shareholders to sell their shares. Fortescue’s investment does not currently appear to include a takeover-style premium, which supports the idea of a strategic stake rather than an acquisition attempt.
In sum, Fortescue’s approach seems to position them as a powerful partner in HyTerra’s growth, especially in the white hydrogen sector, without the full obligations or complexities of a takeover. However, if Fortescue decides to move toward full control in the future, they would need to initiate a formal takeover process.

Expand

My understanding is that the HYTOs and HYTOAs are of equal dilution when exercised as the Fortescue options so there would be no additional percentage held by them.

I also feel that given Fortescue Future Industries hasn’t been hugely successful buying or starting whole new green companies they would be wise to continue with the current HYT independence and management. They could lose key personnel and vibrancy in a full takeover.
HYT Price at posting: 4.6¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

IXR

Ionic Rare Earths falls -7% as momentum slips on vague production update

HAR

Haranga jumps +7% on Lincoln acquisition

HotCopper Trends: Wall of quarterlies dominate; then there's Micro-X & Ionic

NUZ

Neurizon inks $1.5M loan against R&D Tax Rebate

Oz core inflation at 2.7%; August cut odds still unclear; ASX200 rises

First 2 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

(20min delay)
Last 1.9¢		Change -0.001(2.63%)		Mkt cap ! $30.85M

Open	High	Low	Value	Volume
2.0¢	2.0¢	1.9¢	$1.715K	90.76K

Buyers (Bids)

No.	Vol.	Price($)
13	1076895	1.8¢

Sellers (Offers)

Price($)	Vol.	No.
1.9¢	37825	2

View Market Depth

No.	Vol.	Price($)
13	1076895	0.018
3	256000	0.017
2	533333	0.016
1	300000	0.015
1	83416	0.012

Price($)	Vol.	No.
0.019	33825	2
0.020	1280679	6
0.022	30000	1
0.023	169000	1
0.025	448948	3

Last trade - 11.19am 30/07/2025 (20 minute delay)

HYT (ASX) Chart

My understanding is that the HYTOs and HYTOAs are of equal...

Ionic Rare Earths falls -7% as momentum slips on vague production update

Haranga jumps +7% on Lincoln acquisition

HotCopper Trends: Wall of quarterlies dominate; then there's Micro-X & Ionic

Neurizon inks $1.5M loan against R&D Tax Rebate

Oz core inflation at 2.7%; August cut odds still unclear; ASX200 rises

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

My understanding is that the HYTOs and HYTOAs are of equal...

Top Stories

Ionic Rare Earths falls -7% as momentum slips on vague production update

Haranga jumps +7% on Lincoln acquisition

HotCopper Trends: Wall of quarterlies dominate; then there's Micro-X & Ionic

Neurizon inks $1.5M loan against R&D Tax Rebate

Oz core inflation at 2.7%; August cut odds still unclear; ASX200 rises

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News