True 20% is a major holding, however: * A TO offer needs 90%...

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bensterz

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06/02/18

18:47

Post #: 30866248
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Originally posted by jake0002 ↑

Goodaye Ben,
"... I suspect this because it would reduce the level of influence Gordon can play in the sale discussions.."

If PRT were to sell its TV assets to SWM or anyone, PRT would be required to get the approval of shareholders to do the transaction.
That's because PRT would be selling its operating assets. it would be a wholesale change of business.
Thus if s/h approval is required, BG would have an undue influence, because he now controls about 20%.
So he is a kingmaker now.
Good discussions, and some good ideas.

We know, and PRT has stated, that PRT are looking to do a deal.
BG is in there to influence any deal.
SWM is vulnerable - its SP hits a new low every day it seems.
Stokes I am sure would be open to a deal of some sort, to extract himself from TV.
His son now seems to be running the show, and I suspect his son likes O&G more than old style TV.

PRT is definitely getting ready for movement.
As I highlighted before, PRT told s/h they need to lower their sights on what they expect from M&A activity.
I don't know what numbers they are indicating.
Their focus on debt reduction was always made with consolidation activity in mind.

I wonder what sort of numbers a new C7 distribution deal would entail?
maybe thats what BG and WIN are up to?

anyway, maybe this DJ/ASX shakedown will rattle a few cans??

cheers

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True 20% is a major holding, however:

* A TO offer needs 90% acceptance before you can force the remaining 10% to sell into the deal - you'd have to deal with BG in this scenario

* A business sale require special resolution at an EGM, 75% vote for approval. Its possible to get a deal done this way that BG doesn't support.

BG has less say in a business sale than a takeover - and I can't see BG taking an economic interest beyond 20% forcing him to make a takeover bid in order to have a blocking vote at an EGM.

BG's corporate decision making hasn't been the greatest of late.

PRT Price at posting: 31.5¢ Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

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