The profit share plan is fully disclosed in HSK's bidder statement. I haven't seen anything from NQM in relation to it, but if NQM's target statement in response to HSK doesn't deal with it I expect that CQT will go to the Takeovers Panel. It's clearly material that 20% of NPAT will not go to shareholders (in fact, the HSK Board has the discretion to allocate a further 2.5% NPAT to executives under the plan, so it's 22.5%).
Now we know why NQM, with a larger market cap, isn't taking over HSK. In that scenario the profit share plan would fall away. Clearly NQM taking over HSK is the best outcome for NQM and as an NQM shareholder I expect the NQM Board to do the right thing by me, not some HSK execs.
I'm going to sit tight until I see the NQM target statement. At this stage I'd rather stay independent than give away a large chunk of profit to people who haven't earned it.
NQM Price at posting:
30.5¢ Sentiment: Hold Disclosure: Held
