Removing all conditions means they have, in my book, given up on the idea of a successful takeover.
However what if the best they can hope for now is turning their rubbish scrip into hard cash by taking whatever acceptances they get and then flogging them directly in the market.
A sort of back door cash raising.
We all know who they had to go to last time and they never did tell the market what the net proceeds were, so one must wonder if they had to pay hefty fees.
But this way with no conditions attached to the offer, they could "cash in" what MEO shares they get by simply exchanging their rubbish scrip, and hey ho you have a nice little back door cash raise.
A sort of Cash Converter for Mosman shares.
To make it worthwhile they would need a decent amount of shares, but even if they got no more than say 2% of our MEO shares ie 15 million, then they could sit on that as a trade investment and wait for our share price to increase .
Say by later this year we have completed all farm outs, have promising progress on TS, firmed up on Cuba etc then our share price should be well north of here.
Let's say hypothetically 10c, that would value Mosman's acquired shares at $1.5m.
Not a bad return for offloading some of your scrip.
Now this scenario is a bit if that and if the next thing I know.
But the basic principle is the same, they can use the Mosman printing press to issue as much of their rubbish scrip as they want and then use whatever MEO shares they manage to snag, as a trade investment which they can at any time turn into hard cash by selling in the market.
I think it points up very very clearly indeed just what future value they see in MEO, and you must conjecture how much future value they see in their own company.
MEO Price at posting:
1.7¢ Sentiment: Buy Disclosure: Held
