I don't profess to fully understand the KAH announcement, but it appears to be about protecting KAH from takeover.
Is it correct that they buy Coronet (& get the shares) & pay by issuing more shares in KAH to Coronet?
If correct, there are more KAH shares issued in total, but 7m of them are now owned by KAH. The effect is to dilute other shareholders holding in KAH by increasing the number on issue AND to provide an internally owned block, which helps fight off hostile takeover.
Interesting tactic.
I wonder if there are other holdings similar to Coronet, where they could offer to do the same thing & make themselves very hard to acquire under a hostile takeover.
What will Rio do - as to up the offer & buy Coronet would be against the agreement that the three main holders have to maintain their percentage holdings. Maybe they will just buy on market to hold their percentage.
EXT Price at posting:
$8.50 Sentiment: Buy Disclosure: Held
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