The ASX have stated that the suspension is because the name of...

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byg2323

116 Posts.

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21/09/15

14:58

Post #: 16029905
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Originally posted by tt2000 ↑

byg2323,

Agree 100% that this is a material transaction, however, the ASX state that their reason for suspension is that AZZ have not provided the name of the purchaser as part of its continuous disclosure. The interpretation being that the name of the purchaser is material.

If the ASX are of your view then they should state this as the reason that AZZ is suspended - along with what additional information they believe that AZZ should release to the market. Also, if they were of this view then the suspension should have occured prior to the release of the initial announcement on 07 September 2015 (if this initial announcement about the purchase and sale transactions did not contain sufficient information, then one must ask why it was allowed to trade at all between 07/09/15 and 11/09/15 when it was suspended).

Maybe the ASX means that there is not sufficient information but they don't want to admit this else it raises the question as to why suspension did not occur on 07/09/15, so they are using the 'name of the purchaser' as their way to enforce it.

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The ASX have stated that the suspension is because the name of the purchaser has not been disclosed. If they provide it to the market, the suspension will be lifted. Whilst the name doesn't guarantee anything, it allows some ability to assess the risk of the deal. Anyone can sign a purchase agreement that requires no deposit or has no recourse.

The ASX does not vet every announcement made - its impractical to do so in an timely fashion. The fact they didn't pick up on this on Monday is not a lapse in compliance. However someone from HC did write to them complaining that they felt the announcement was lacking information - the ASX happened to agree with them and asked for further information to be disclosed. They don't want to disclose it and as such we are where we are.

AZZ Price at posting: 50.0¢ Sentiment: Hold Disclosure: Not Held
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0 Great analysis

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