Interestingly some media stories report deal as done past tense, not quite. Vote is May. And vote appears important in following due process. Director and significant holder support is usually a key in deals due to voting power but no guarantee.
If L1 are getting a 27% premium on the shares is this undervaluing? On whether undervaluation has occurred one would think this is a corporate reality. If you have followed stocks for a while you may notice many companies at some stage say they are undervalued, including those in their infancy and with undeveloped projects. What this may fail to consider is that without funding partnering up the projects may not get off the ground or take a long time.
A scrip deal rather than all cash appears important from an equality view because it allows participation in future value of enhanced entity, and is accelerating development. Also the last time I checked in Aust companies board/mgts make ‘lots’ of decisions without holders knowing a thing until after the fact, or behind closed doors, its called 'managing a company'. overseas may be different?
GXY Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
