Since TAM (APEC Resource) directors announced to the ASX that they were undertaking discussions with NST regarding the CTP on 28th February 2019, it's great to see that APEC Resources have since:-
1 March 2019 - Purchased 4 million TAM shares at 4.0 cents (0.34%)
11 March 2019 - Announced a 1:2 rights issue raising around $A85 closing 16th April.
9 April 2019 - Purchased 30 million TAM shares at 4.1 cents (2.6%)
APAC's recent share purchases have increased their holding by 3% to 43.5% they also announced an rights issue to build a significant cash holding (sufficient to acquire TAM's outstanding shares) both of which occurred after the commencement of NST discussions. I can only logically conclude that negotiations with NST must have progressed well!
I continue to see TAM's share price being consistently suppressed in a very professional manner through utilising both the ASX and Chi-X exchanges...perhaps someone with a skilled commodity trading desk? I believe it is this suppressed share price that is providing the outstanding profit:risk ratio of around 8:1 at a share price of 4cents. Normally I would expect an asset rich and cashed -up stock like TAM to sell at over 50% of its NTA at say at least 6 cents, if this was the case TAM would have a much more normal profit:risk ratio of about 2:1.
Given APAC's increased board control, I expect they may be less forth coming in providing shareholder updates, potentially maintaining shareholder uncertainty. Therefore watching their actions is the best method to gain insight into their assessment of TAM as well as their future intentions.
As APAC already have effective board control, I see these latest TAM purchases as purely part of an acquisition process to gain full control and in doing so directly access TAM's considerable assets of cash, NST shares, Tax losses and a minimum 25% of the CTP. Full ownership would also potentially enhance their commodity trading business.Given these latest purchases and their timing, I suggest the potential for an APAC takeover has been further reinforced and remains a very strong probability. DYOR
