I've been following the MLX & WGR takeover agreement.
I understand MLX maybe interested in RDR's gold project at Meekatharra and combining it with WGR's nearby gold projects.
But what I don't understand is why MLX is still conducting a on-market share buyback, when you are doing a takeover of WGR using scrip for scrip.
I don't see how that is beneficial? you do a buyback to consolidate APAC's holding in MLX, but the scrip for scrip then again dilutes their holding. I'm quite confused.
An example is IOH's buyback, thus you see Kerry Stroke's holding in IOH increase.
Whereas MLX's buyback and takeover is counter-effective.
MLX Price at posting:
12.5¢ Sentiment: None Disclosure: Not Held
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