AVL closed on Friday at 2.2c, so the 1:12 offer is currently...

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dbd25

7,306 Posts.

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25/11/23

14:47

Post #: 71104741
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Originally posted by dbd25: ↑

If the merger terms get rejected, how on earth is TMT going to get taken over for even less ? Even fewer shareholders are going to vote for that, and RCF are still stuck with their large holding, unable to sell due to lack of liquidity. Their only option is to make a better offer for TMT, which is the normal course of action if a takeover or merger gets rejected. Make no mistake, this is NOT a merger in any sense of meaning. It is a simple takeover of TMT by AVL, because AVL will ultimately control all the assets of TMT, the valuable ore body, the place in the queue at the EPA, the cash remaining in the bank, the business links etc etc. TMT management and board will be mostly let go, or will end up with subordinate roles in AVL. In a takeover, the company doing it has to pay a reasonable market value price for the assets, and usually with a cash buyout option, its that simple.

all imho, dyor

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AVL closed on Friday at 2.2c, so the 1:12 offer is currently worth only 26.4c per share to TMT holders, and thats not even a cash offer, theres the added uncertainty that holders wont be able to sell their AVL shares due to their illiquidity. The offer is simply woeful. You'd almost wonder if AVL and RCF are using the current softness in the Vanadium market to try to grab TMT at a rock bottom.price.

all imho, dyor

TMT Price at posting: 23.5¢ Sentiment: Sell Disclosure: Not Held
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1 Great analysis

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AVL closed on Friday at 2.2c, so the 1:12 offer is currently...

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