If the MBL Offer had been say 80c, no one would be complaining.
The fact that it is at 20c + CVN, then people are objecting, and making all sorts of claims.
So the issue is about money - nothing else substantial.
Putting that aside, we have to look at the situations from the Board's viewpoint.
1. the board are elected by s/h - so if s/h don't like what the board is doing - then chuck em out.
2. once a director, each director has legal duty (a fiduciary duty) to act in the best interests of CTP, and all its shareholders
3. we s/h simply do not have all the info possessed by the board
4. we will get far more detail in the IER which will accompany the voting papers.
5. the Board evidently has looked at many options, it has canvassed other funding options, there has been plenty of opportunity for other parties to come forward, and none have.
6 we have been repeatedly told that, in order for CTP to take advantage of the looming gas shortage and the expected high prices in that 5-7yr period, that CTP must act now in order to secure the gas contracts.
7. to secure the contracts, CTP needs funding NOW.
8. that's the issue as far as I can see.
9 so whoever takes over the reins at CTP will face the same issues.
10 unless it is a party with very deep pockets - ie like MBL.
11. SO - the board of CTP have obviously come to the conclusion that they have not been able to raise the funds without destroying s/h value
12 they have decided that if a choice between destroying s/h value and 20c+ - they think that the 20c+ (or bird in hand now) is better deal ----> so that is the direction they have chosen.
13 they have decided to let the s/h have the benefit of the MBL Offer, and let the Shareholders decide. They have a fiduciary duty to put the MBL Offer to s/h - and that's what they are doing.
14 if they did not put the proposal to s/h, they would be kicked around the head, and probably get into strife.
15 I have not read docs, but it will have been a condition of MBL, that if MBL offered 20c then the CTP would need to unanimously recommend the deal to s/h, and commit to selling their shares into the Scheme.
16 so really, even if Directors were not happy with 20c, ie wanted more, then at least they will be able to let s/h decide on the adequacy of the 20c Offer. If not enough then Scheme voted down, and CTP goes to Plan B.
17 If s/h unhappy, then directors can be voted off at next AGM.
18 we may find that if Scheme not approved, RC may walk away?
anyway, just some thoughts.
I would like far more than 20c, but it is the ONLY offer on the table at the moment.
But look at Hunter Hall situation - Soul got 20% for $1 per share (clearly just to get bidding war going), then there were 2 parties getting into a bidding war. Now offers at $2.40.
So we never know what might happen before we have to vote.
Remember, we are in a Suppliers market at the moment. We have the reserves and resources - all we need is a deep-pocketed partner.
EIG joined up with Senex. Who can say if another EIG will not stick their head up?
cheers
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