Page 34 of the bidders statement tells us of a highly likely outcome.
I am throwing my hands up.
I've looked at this from a number of angles.
The results of the Annual General Meeting reveal that the least approved motion was the remuneration report.
The motion was carried with 215 million or 45% of the total issued stock of 474 million. And a number of these 215 million are absolute rock solid considering the common share holders in the both both registries.
Assuming voting patterns followed that would mean only 6% additional stock or 30 odd million would kick this over the 50% high water mark for control.
As such a scenario detailed in the bidders statement (page 33) could eventuate.
Section 8.3 reads ..... Intentions upon acquisition of between 50 % and 90% of Maxsec shares.
All looks like pretty standard text........but it does say FFT intends to exert the control over business and the board. Honestly , I'm not worried about this. But its the absence of high conviction wording that I have been mulling over.
I admit the relationship as it is is cosy, so the compulsion to cleanup quickly might not be a driver.
What about cash @ bank for FFT......... $5.5 million.... they won't be raising anymore capital to acquire when they have already achieved what they want. I actually have a feeling this maybe a scenario they could very much live with, I didn't say prefer, but could live with.
The interesting scenario comes at 75%.
MSP stock can be removed from the ASX board once FFT reaches 75% at the end of the offer and there are fewer than 150 remaining shareholders with a value of $500 in holdings, providing this is achieved at the end of offer. The removal would take twelves months.
Add the 75% element, little cash in the bank for enhanced offers (I know its script) , and the remarkably cosy relationship that exists to operate without having to hitting high water marks has me leaves feeling like I've been at the pub, had 20 schooners and I I've got only one option left on the dance floor and its not Megan Gale.
Unfortunately my thoughts are not stuck on other curves.......the wrong curves in the shape of this chart.
MSP has grown revenue 4 of the last 5 quarters, while FFT's has shrunk revenue 4 of the last 5
My mates at the bar tell me to think positive...........................hey her numbers might not be pretty but at least your going home with someone..........
MSP Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
