AGS 0.00% 17.5¢ alliance resources limited

I hold, so I am positive on the stock.However, don't get too...

  1. 159 Posts.
    I hold, so I am positive on the stock.

    However, don't get too excited about AGS receiving a T/O bid. Its a long shot. Heathgate already have 75%, control and are operator, so why overpay for the remaining 25%?

    AGS' best hope is with the terms of the JV and the termination provisions therein. I suspect that AGS as the extremely inexperienced junior that it is has inadvertently signed up to a JV with some ordinary performance terms (with respect to Heathgate as operator) and termination provisions.

    Headed for the courts is not a desired option for AGS. It means that there are insufficient mechanisms in the JV agreement to ensure Heathgate behave themeselves and operate the JV with transparency. There is a chance the court says tough bikkies to AGS, you willingly and knowingly signed up to a JV with cr_ppy terms, now you'be got to live with it.

 
watchlist Created with Sketch. Add AGS (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.