Hi nobull. That's probably a more reasonable explanation. It is said when it comes to a choice between conspiracy or a cockup you should choose the latter. Perhaps a simpified version of occam's razor? Anyway the idea of MAK just defending against UCLs bid is simpler and therefore likely more reasonable than my own initial thinking.
I''ll back off my speculation in that one until there's some reasonable evidence for it.
Re giving away $36 million of mehdiabad value. That's not really happening is it? Worst case scenario for dilution on mehdiabad for you would be if UCL gets all of MAK in which case your exposure to Mehdiabad would be diluted by around 60% on quick mental calc. Agreed that is heavy but it is not 100% and i think would be compensated by improved ability to finance mehdiabad, if and when, from 100% control of sandpiper profit (ex tungeni's share) and thus see less future dilution for you on Mehdiabad than would currently be the case.
There would also be compensation from Wonarah which i realise does not appeal to you but i think has long term value.
Of course this speculation could come to nought if the takeover bid fail. In that case there would be no mehdiabad dilution for you.
UCL Price at posting:
19.0¢ Sentiment: LT Buy Disclosure: Held
