AGS (ASX) Itochu 40% Dilution

Originally posted by Metalduster ↑

" The only way it can be in shareholders interest that I can see is if it is part of a plan to transfer ownership of ACE to Itochu. We let them have 40% at a discount so it makes it expensive for Heathgate to match the offer"

3gb
You post the above but realisticly H/Q don't need the 25%. Sure if they can get it for nothing they'll probably take it but as to paying a premium its not a possibility as AGS has no bargaining power imo, that went out the door with the failed M&D C Matter all stemming from the conditions signed off on, in the initial J/V.

On what do I base my opinions well the obvious atm H/Q/BBros have 75% and total control of B4M.

All H/Q have to do is send AGS a cheque. All AGS can do is cop whatever H/Q send their way.
They have no input as far as the Mining and Production is concerned Costs, Selling of the Product etc etc. imo

Ask yourselves what AGS can do to make H/Q pay a premium for B4M or anyone else for that matter?

Now I believe that no-one other than H/Q can buyout ACE (25%).

Sure Itochu is in the mix but there limit would probably be the 40% if they are interested because H/Q have the final call on the 25%.

If Itochu buys in for the 40% they pay peanuts and it relieves AGS of extra burden of 10% of B4M. It also gives AGS some play money for Chile etc. imo

For AGS to get a premium from H/Q they need some Company prepared to offer and pay a premium for the 25%(B4M) something I don't see.

As I have posted AGS's best chance failed with the M&D C Matter for a premium to be paid by the BBros. imo

To use an Americanism the BBros could think their dealing with a bunch of 'Jackasses' with AGS. imo

If I'm right. AGS(Directors) are in a predicament that they want out of and the BBros know that.

With the above thats how I see it.

The Sale price if it gets the go ahead will tell me if I'm wrong. I'd rather a Sale to the BBros than Itochu taking up the 40%. imo

Md

Expand

It is not about getting a premium, Heathgate wont pay a premium they will stay with their 75% and collect a toll. Another serious buyer prepared to pay a reasonable price is required. The problem is buyers are discouraged because H/Q can match there offer and get full control. This is why I think talk of a dollar plus is unrealistic.
If Itochu take up the 40%, and they could well buy up another 5% of AGS on market, and make an offer for the balance of ACE you will know it is the best offer if H/Q dont match it.

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