NWE - Week starting 13th February, page-182

First 182 Last

Share
Profile

Follow
pakkham

12,897 Posts.

672

22/02/23

09:05

Post #: 66386733
Share

Originally posted by V10: ↑

Hi Digger 13,
This is standard industry practice. The target of a takeover contracts with a financial consultant or usually house broker, to advise the client, in this case NWE how to extract maximum price for their shares from the party trying to take them over, in this case Minres and also advise them what might be a fair and reasonable share price.

A fee is charged for this service by the 'advisor' which can range from 2-5% of the value of the total takeover transaction.

My understanding of how this might apply to the current Minres takeover of NWE is as follows, but more learned posters may correct any errors or assumptions I may have made.

For the Minres-NWE takeover , the more shares the takeover party Minres 'buys' by cash or share swap aka 'paper', paper in this case, the greater the fee to the 'advisor'. Based on the $11 million fee, and back calculating, if Minres gains 100% of NWE, assuming the total takeover has a value of ~$450 million, then the $11 million fee amounts to ~ 2.5% fee or commission to the advisor.

Takeover targets often cynically take the view, if the party making the take over is successful in gaining 100%, then the take over party is in effect paying the success fee contracted by the takeover target and the shareholders of the target have extracted the maximum price for their shares. Well that's how the script is supposed to read,

Just my take on the matter. DYOR.

Expand

>>> ??
actually by criterias>> takeover means happy ending of all hopes and dreams>>

NWE Price at posting: 6.5¢ Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

MKG

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

MLS

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

ASN

Utah authorities sign off on Anson's lithium extraction plans at Green River

MM8

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

NAM

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

VUL

Vulcan appoints investment bank and M&A veteran to board

AZY

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

ENV

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

There are more pages in this discussion • 52 more messages in this thread...

First 182 Last

Add NWE (ASX) to my watchlist

NWE - Week starting 13th February, page-182

Top Stories

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Utah authorities sign off on Anson's lithium extraction plans at Green River

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Vulcan appoints investment bank and M&A veteran to board

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Featured News