What this board and chairman is doing is parking the Mayne’s cash (currently shareholders money) into business ventures that will bring future benefits. It is beyond comprehension why Mayne would enter this deal when board’s position is to accept the current offer while at the same time invest current shareholders money into future ventures that will clearly only benefit Cosette.
If independent experts report highlights the current offer is too low not just because of future potential but also due to high cash position, chairman is trying to park the excess funds into business ventures that will only benefit future owners. This deal should be investigated- highly likely this chairman has affiliation. Few months ago Mayne was fully focused on operational improvements but now investing in R&D projects which generally takes years to materialise with very low success rate.
the chairman and this boards behaviour is highly questionable..who knows what this chairman is doing but clearly not in the interest of current shareholders.
good case study for universities on unethical behaviour, flaws in corporate governance and asx, conflict of interest, and perhaps personal greed
MYX Price at posting:
$7.05 Sentiment: None Disclosure: Held
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