Current offer of $2.70-$2.75 was half baked and has a snowballs chance of getting through. Apart from it being a small premium to the share price at the time, GRD has traded to $3.00 intraday in recent history. GRD has a lot of latent value locked away as Minproc isn't getting fully valued in the current structure and GRL is on the cusp of something potentially large, but really should be listed in the UK along side the Lancashire project and where there is an established Carbon Market and the legislation for Landfill avoidance is a lot more progressed than what it is here in Aust. This should do nothing more than send a message to GRD that others in the market recognise the value that would be gained from a break up and in-specie distribution of GRL to GRD/Minproc holders. Neither Macquarie, nor transfield have had access to books to do proper due dilligence. The MD, Lawrenson is ex Macquarie Bank, knows their tricks and realises how opportunistis this bid is where the Lancashire development is. If Lancashire proves itself and UR3R capitalises on it's protected first mover advantage, the upside to this stock in 5-10 years is massive, $50, $100, $200/share, who knows? What we do know is that at current prices, under a break up scenario, the GRL option is almost free. Trust me, TSE and MBL aren't here to do GRD shareholders any favours.
After such a long pre-amble, I believe the bid current or revised will fall over as the GRD Board has to come up with a risked value for GRL now which will likely send TSE/MBL packing. If you believe in the upside of Global Renewables, hold on, if not, vote with your feet, don't wait for a successful bid
GRD Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
