CXS held very advanced discussions with PGL about a merger. PGL had all the cash CXS needed and CXS would not have done the capital raising it did earlier this year.
These talks took place well before PGL started the failed AVX talks and the subsequent CYT mess.
PGL’s 1st choice was to merge with CXS. And CXS wanted the merger to go ahead. However, the parties could not agree on one sticky point. How to go about the mechanics of the merger and to the extend shareholder was going to be involved.
Progen’s board wanted to seek shareholder approval for the merger while Greg Collier and the CXS board wanted to take the fast-track route and have the merger approved by court order. Both are valid avenues. Clearly, the court process would have been a smoother transaction considering the PGL register with the heavy Taiwanese influence. Just see the mess the Taiwanese power has landed PGL in – disharmony in the boardroom, court hearings bla.bla. They came to a Clayton’s settlement this week. The details are ‘entertaining’ reading.
CXS Price at posting:
96.0¢ Sentiment: None Disclosure: Held
