Not strictly true. Min have 20%. They can’t buy more without mounting a takeover. Only need 50% to gain control in a takeover. I think a takeover offer for ESS is actually pretty low risk - you either gain control pretty cheaply from frustrated shareholders or you force Min’s hand to mount a higher competing takeover and profit from any shares you have managed to accumulate. Min’s 20% stake was an effective block for the initial scheme arrangement where you need 75% to succeed. Part of this was because a lot of shareholders assumed Min would mount their own takeover. A lot of shareholders saw Min as the natural owner of ESS. Once they showed interest by buying 20% many assumed they would then come through with their own takeover and hence didn’t vote for the scheme. I believe sentiment towards Min is deteriorating by the day since they haven’t mounted a takeover. There’s no way to sugar coat it. Blocking a takeover and then not coming through with your own takeover is a dog act. Therefore if someone else was to mount a scheme arrangement they could potentially even succeed as they can still get 75% of votes ( 75% of remaining 80% ). I do agree this would be difficult but, as I said, sentiment towards Min is deteriorating and I for one would vote for a new scheme and I suspect many others feel the same. There are scheme’s that get 99% votes so getting 75% out of 80% is not impossible. I for one have got it wrong on ESS so far and am increasingly disappointed with how things have progressed since the original scheme was announced. GLTAHs
ESS Price at posting:
43.0¢ Sentiment: Hold Disclosure: Held
