rules for scheme of arrangement

I am seeing a lot of angry and dejected posts on this forum today. It almost looks as though the natives are a little restless.

From looking at some of the information about schemes of arrangements, we may still have the last laugh.

A normal takeover is predicated on a series of conditions, the biggest of which is usually a 80 - 90% of shares accepting the offer.

In this case, though, the requirement is 75% of shares AND 50% of voters. In most takeovers, the large shareholders are the ones who have the majority of control. In our case, it is that 50% figure that can determine our fate.

If, and I am not yet ready to believe it, we have been sold out / down the river / up the creek / etc by management, then we still have the opportunity to stop this low-ball takeover.

We simply need to ensure that every small shareholder either attends the vote, or fills in and returns the proxy paperwork, voting no.

As soon as the number of no voters (not shares, voters) is 50% plus 1, then the deal does not go through.

So I say, send me the paperwork now - I shall be voting No!