Without these caps, AVZ could hit 26c or more.
A takeover premium is usually 50% - 100%.
Tianqi Lithium offered 76.88% premium while acquiring Talison in 2012.
If they kept price under 25c.
Potential takeover price: 24.5c x (1 + 76.88%) = 43c
If let price run, saying 30c.
Potential takeover price: 30c x (1 + 76.88%) = 53c
The difference for consideration:
2.249b (fully diluted) x (53c - 43c) = $224.9m
Providing 18m shares have been taken, 18m @ average 26c = $4.68m
These shares sold, would still result in a nice profit.
But potentially effectively saving $224.9m on takeover.
Just for exercise.
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