I am an RNI holder and although I would like the deal to go ahead, the linking of the actual price to that of the SP of MLX at a future date (probably the date of approval by RNI shs - October?) makes it an uncertain event. I say this as RNI has to pay its creditor Taurus $23m (some qualifications there as per the last ann) and to be able to clear that hurdle without issuing a stack of shares to Taurus which would then overtake MLX as the major shareholder (some subject to's there btw) the SP of MLX should be at least $1.28 at that time, That would just clear the debt. Of course, RNI would need to sell the 18m shares without disturbing the then market price, so off-market would be the way to go.
Anyway, this BP prediction sits well with me as an RNI holder, and it should sit well with MLX holders too (apart of course from the sp increase itself for MPX holders) because, as the expected major holder, it would mean that RNI could then explore for a decent time without another CR.
Giddy-up MLX SP!!
MLX Price at posting:
$1.19 Sentiment: Buy Disclosure: Not Held
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