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78.0¢ avz minerals limited

Thanks a lot, finally the answer I was looking for.

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zurichcity

17 Posts.

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28/07/17

14:53

Post #: 26143719
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Originally posted by binwood ↑

It depends how the deal is structured due to the fact that there are 3 parties involved in the resource. The simplest way for all involved would be for a suitor to buy AVZ. In this instance they would offer a price per share, and would require 90% of holders to accept that for the takeover to proceed. If this occurs your shares will be acquired from you at the given takeover price and you can then do what you want with it.

The other alternative is they buy the resource. This is not really an ideal situation. That would mean AVZ ends up with hundreds of millions of dollars of cash but without the resource. They then have to use that cash in another way to generate value for shareholders equal to or greater than the cash.

An example of this is DKO (NLI) who are trading at basically cash backing for their share price because to date the market doesn't perceive them as having created sufficient value to deviate from this.

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Thanks a lot, finally the answer I was looking for.

AVZ Price at posting: 6.4¢ Sentiment: Hold Disclosure: Held
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