The idea is that we have the ability to reject a lowball offer, which could in turn lead to a massive rerate.
A potential acquirer submits a proposal to the board of directors, who then negotiate terms and provide a voting recommendation to shareholders. It has been discussed here before that if this offer provided a premium to the share price, then the board of directors would have a fiduciary responsibility to recommend in favour of acquisition.
However, Dr T (with his >10% holding) is not on the board of directors, and is free to rally shareholders against such an acquisition if the offer grossly undervalues our potential.
It could be that we receive multiple offers (or even start a bidding war) before successful acquisition. IMO this is the scenario in which we achieve something resembling a fair valuation.
RAC - Charts & Price Action, page-20714
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Last
$1.79 |
Change
-0.075(4.02%) |
Mkt cap ! $304.8M | |||
| Open | High | Low | Value | Volume |
| $1.86 | $1.86 | $1.76 | $348.2K | 192.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 5612 | $1.77 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.79 | 3567 | 1 |
View Market Depth
| Last trade - 16.10pm 14/06/2024 (20 minute delay) ? |
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Last
$1.78 |
Change
-0.075 ( 5.38 %) |
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| Open | High | Low | Volume | ||
| $1.81 | $1.86 | $1.76 | 27553 | ||
| Last updated 15.55pm 14/06/2024 ? | |||||
| RAC (ASX) Chart |