It's funny how underhanded M&A's can be. RUM's offer states "Implied Offer value is calculated on the basis of the Preferred Value of $0.245 per RUM share ascribed by the independent expert appointed by CEN to opine on the Offer."
The same independent expert states the following about CEN's value: "The Independent Expert has valued CEN Shares at between 2.8 cents and 4.2 cents with a preferred value of 3.5 cents which represents a 62.8% premium to the implied value of the Rum Jungle Offer of 2.15 cents based on the closing price of Rum Jungle Shares on 12 February 2013, and a 89.2% premium to the implied value of the Rum Jungle Offer of 1.85 cents based on the closing price of Rum Jungle Shares of 17 cents on 18 April 2013, the last practicable day prior to the release of this Target’s Statement."
If CEN shareholders are expected to accept that the expert's value of 24.5cents per RUM share is fair, then shouldn't RUM also accept that CEN is worth at least 3.5 as "opined" by the independent expert.
Food for thought...
CEN Price at posting:
1.9¢ Sentiment: None Disclosure: Not Held
