Thanks for responses.fss - no, not over-valued; just that the...

Thanks for responses.

fss - no, not over-valued; just that the real price per share that Gas Tech is ascribing to Linc remains an unknown. Unless, that is, we uncritically accept the actual deal is as it was structured in the description.

Which came first? the amount of Linc Scrip or the dollar price for the acquisition? Did they say we are offering $50m, but only in scrip at a premium price? Or did they start with the number of Linc shares that Linc believed would close the deal and then say, "But these are at a premium price of $4.03?"

Let's say Linc calculated that Gas Tech would accept 12,406,948 LNC shares as the price of acquisition:

$50m @ $4.03/share = 12,406,948 shares

Or:

$30m @ $2.418/share = 12,406,948 shares

Linc might have overbid as a dollar amount, but also over charged in share valuation. It's all the same to Gas Tech, as either way, they get the number of shares that is acceptable.

I'm aware that the $50m tag is in USD, and the $4.03 imputed price per share is in AUD, but the figures are only for illustration.