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02/12/22

13:51

Post #: 65119658
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Originally posted by camban: ↑

I don’t disagree that it would be a logistical nightmare to transfer LLL holdings into a new class that is bound by escrows on all the individuals and wonder if this is even possible (in fact the advice LLL received from ASX indicates that FFX could do nothing at all - actual or contemplative - with their holding until 23 June 2024 release date - that presumably includes breaking it up into smaller parcels).

My understanding is the escrow is a condition on LLL for that tranche of shares, and whatever FFX does with itself (perhaps even delisting from ASX) does not necessarily create an opportunity for early release as LLL remains listed and bound by the escrow condition (unless LLL is subject to a change in control).

The cleanest is the sale of FFX and the distribution of cash proceeds for everything to holders of record on 24 June this year when it went into halt. (Note the coincidental 2 year gap - almost to the exact day - between halt and end of escrow!). But that remains the worst outcome as far as value recovery is concerned if we all agree that by mid 2024 the LLL holding will be valued much greater than it is today. This is why I think sharks are in the water and have been foreshadowing this all along, sitting on the LLL share price so they can force a cheap FFX acquisition as its primary asset (the LLL holding) is worth as little as possible.

Patience might therefore be the only real solution if we want to see the bulk of our money in here back. If FFX delists and goes private, essentially as an investment holding company or trust until escrow is over and it can then easily distribute to holders of record on the escrow release date, it would largely settle the issue and the sharks (which includes our brokers!) would probably have to retreat. In the interim a secondary “market” for shares might have to develop out of necessity if trapped holders here really need/want out before June/July 2024.

I suspect these are the questions and pathways FFX has lawyers pouring over right now. Add in any potential complexity caused by the ATO too, who will surely be looking hard at the whole demerger that they ruled on and querying the bona fides of what they were told about the relative valuations of the businesses. All avenues are somewhat fraught imo!

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Yeah agree... Now, the best option would be to get the whole company sold and distribute the cash back to shareholders - as you posted above...and I think it is the only viable option too...
ALL IMO

FFX Price at posting: 20.0¢ Sentiment: None Disclosure: Held
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