Been thinking about the reasons for MIN early TO bid of NWE.
The likely hood of someone else making a bid was already low due to their significant holding and already 80% share of the resource.
Yes an offer before the drill does the talking is very astute. So to is any opportunity to hold more of a good thing.
If MIN do not get 50% 70% or 90% they still win as they have more of a good thing.
MIN was unable to obtain more of a good thing with its original holding hitting the 20% target
The only way they could buy more is via the 3 processes in the brackets above. Therefore a sensible approach to 'buy' more from holders or the market has been implemented via TO. You as a buyer of a company would also offer the lowest bid possible to get shares in your chosen company.
Increasing the bid to collect more over time is dollar cost averaging up, also another good technique to accumulate shares.
Maybe MIN is using this process as a means of owning more of a good thing not necessarily aiming to fully TO. They probably know they don’t have the numbers to get compulsory acquisition. The calls seeking shareholders thoughts on current bid are assisting them set the next offer.... There will be a sweet spot where MIN will achieved their goal of owning more NWE resource.
80% and operator with 40% of NWE as a company.
They make dosh this way too.
No call for me and big fat NO chance of relinquishing either...Im here until the drills tell the true story.
ive held since first purchase in 2009 and want the reward after surviving the risk.
