ZEN 0.00% 91.0¢ zenith energy limited

trading next couple of days will be interesting; if Westoz are...

  1. 5,619 Posts.
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    trading next couple of days will be interesting; if Westoz are still buyers then need to add 1.5 mill shares to file another substantial holder announcement; they bought 2.8 mill at 98.5 cents on 5 June; then price sat at 99 cents for a few days; but Friday was 950k shares at 98 cents; were they buyers? The market looks like 98 cents is 'the price' for a week or so (until court case - planned for week of 22 June - next week)

    if you look at the Apex playbook they bought until they knew they could stop the scheme, then they stopped buying (actually I think Arrow got them to stop by buying at 1.02 - forcing Apex to stop and go chat with PEP maybe a couple days and 2.5% of the shares early)

    if Westoz follow the same playbook, they are chatting now to join the Cabal, or they will buy more (as market price is at their price) to strengthen their bargaining position, or they have enough now to force a 'no' vote and need not buy more

    if they have enough to force a 'no' vote and are bargaining now, they may just sit with their position; a 'no' vote will push the share down to 90 cents or so (in my opinion); so they may be saying to the Cabal

    1) let us join the Cabal
    2) increase the takeover price to a more reasonable price to ensure a 'yes' vote
    ...if current Cabal does not agree to 1) or 2), then
    3) we (Westoz) vote 'no', and will use our $$$$ to buy more at 90 cents (not 98.5)
    Last edited by danhoff: 15/06/20
 
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