Its something I've banged on about previously , it had considerabe merit then and probably has more now IMO , it elliminates the issue of the OTA immediately and I would be more supprised if it didn't happen than it did. Its been common within the industry. There is no perfect solution.
The bit in bold is false mate.
The OTA PLL have with SYA is only the first prong of the arrangement. They still have selling obligations to 3rd parties which they would be making next to no profit at these prices. In the event of a merger SYA would have to accept PLL and all legal/contractual arrangements they have in place.
So for SYA to jump on board with PLL would be disastrous. From my simplistic p.o.v this would be the equivalent of jumping on board with a unit/apartment purchase without doing your due diligence and finding out that body corp/strata expect owners of the apartment at such and such a time to fork out for say full building renovations. Or taking on a business to which has significant long service leave provision for employees....
Considering they sold SYA holding supposedly without any SYA communications shows how far apart they are relationship wise.
If there was any chance at merger that certainly killed it from my POV because you dont do that to those you are in JV with. Especially given the associated bad press that came out at the time. Or have you forgotten the articles already?
The offtake SYA have with PLL is simply a ball and chain at present. An no market re-rate will occur until our incompetent management can stop catering to PLL and start catering to SYA holders. Not only are retail holders the majority holders but PLL now has no SYA stock. Yet going of this management the JV partner is still the priority. But who knows PLL may soon sell their share of that soon. Then and only then perhaps they will finally see, OH PLL is doing things in their own best interest.
Again, until SYA current BoD can appreciate the hard earned put in by shareholders that have driven this company to project start up and start driving value for them rather than for a 3rd party JV partner, who quite frankly has put insignificant amounts into NAL, Moblan & Troilus etc....compared to current holders. Then no one will want to further outlay capital to own this company. This is already evident from our current SP.
SYA Price at posting:
3.6¢ Sentiment: Hold Disclosure: Held
(20min delay)