One key point that no one has mentioned is the position of minority shareholders. BBG has over 20000 shareholders with the top 150 controlling more than 75% of the voting rights which is not un common.
Under the Naude share swap deal proposed up to 24.9% of the consideration must be taken in shares in a NEW VEHICLE being set up to hold the BBG investment. Sycamore will obviously delist BBG if successful.
Will this new vehicle be listed (probably not) Will this new company be Australian or a US COMPANY. The liquidity of marketability for an Aussie shareholder of US unlisted stock wont be brilliant.
But the overwhelming thing that has failed to be mentioned is ONCE this questionable deal pitched at its lowest entry price is executed BBG will disappear off the radar screen and be absorbed into Sycamores 618 Hot Topic, 190 Torrid and 5 Blackheart Surf/skate sports stores.
As minority shareholders the former BBG shareholders will be ignored and abandoned. Sycamore will be free to do as they please your vote wont count and is lost. If Sycamore want to do anything they will be free to do so. By law they generally need acceptance by 75% MINIMUM of shareholders votes to get major issues approved. They have restricted the BBG shareholders to 24.9% meaning they will always hold 75.1% voting rights on EVERY ISSUE AN AUTOMATIC PASS so your vote will never matter. If they decide to withold dividends to force you to be so cheesed off you walk away they will do it. You cannot change Directors AUTOMATIC PASS to veto any challenge to their ABSOLUTE CONTROL.
Smart operators but hardly ethical or Australian. Tell Launa and the other Directors to think very carefully before they commit to this. If BBG is actually honest with shareholders they might rally to keep BBG alive and restore shareholder value.
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