There is a lot to hate about the Z deal but I would like to hear more about why the RSG deal is better rather than what is bad about the Z deal.
I have already explained why I don't believe being able to participate in the RSG deal is an advantage as you can avoid dilution of you shares at below the Z deal which is better than avoiding dilution by matching the offer price. I believe few here will participate in the notes anyway.
I understand the 23c are options and Z could renegotiate or decide not to take them up but remember we don't want them to take them up - we raise just as much at the 16 and 18 cents as we do under the RSG proposal. The options are in addition and provide Z with control so we are unlikely to need to renegotiate and if Z want control they have to proceed.
Wei An selling to RSG at 16c does not mean they believe the deal is in the best interest of NMG shareholders. Assuming the RSG deal goes ahead Wei An have no NMG shares but rather holds RSG shares which is very different to you and I holding NMG shares after the deal is done. We remain NMG shareholders and Wei An a RSG holder - they join the company that will short change us.
I agree that Z will no doubt manipulate the SP to their advantage but why are we so sure RSG won't - why is RSG our white night?
The change in management has been also mentioned a number of times - isn't Z in a better position with their deal to change management than RSG would be? Why do we think Z will tolerate unrewarded spend.
Part of our excessive admin spend last quarter maybe associated with the capital raising costs and the cost of advice.
The only advantage I do agree with posters on is RSG's skills and experience which is urgently needed.
If RSG just offered a takeover at 16c we would probably all take it right now.
Our urgent need for cash is why control of NMG is at risk without a takeover offer. We have to offer up a big chunk of the company in order to raise cash.
I'm not disagreeing for the sake of it I just don't see RSG as our friend like others do. Z will be ruthless but be careful thinking RSG wont be.
I think NMG shareholders are between a rock and hard place and will struggle to see any SP appreciation - I may jump ship soon.
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There is a lot to hate about the Z deal but I would like to hear...
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