Now this sounds interesting, we like someone to buy into the company so we offer him a higher price than he can buy on market now, gives me quite an eerie feeling to be seriously discussing this. I was only working over a takeover offer aloud. I don't expect this to actually happen but was only playing with how it would have to occur with such an open share register. Scenario's great and makes some sort of sense however this is the share market and it would feel a little bizzare if it actually happened. "excuse me I have a company you can have shares for at 7c but for you I'll increase it to 15c". Nice work if you can get it! Then again if they needed a large position they would have to raid deep into the sell list anyway.
Seven-of-nine in answer to your question I think having someone of the likes of Iluka or even Sons having a reasonable stake in the company would be more beneficial than not even at this stage. Certainly Sons postion on the register helped Bemax and I think Crystal will also help though not sure thats really to Bemax's shareholders benefit yet.
The point being once they had a strategic stake in Austpac they could make an offer if they want, then the shareholders can have a chance to value the company properly. At this stage I'm waiting to see how they are going to fund the 30,000 tpa plant. As they build up they will need more cash to build plants and having a big brother on board will help if they do debt funding. I agree though it would be a great shame if taking a strategic stake means they get the lot far too cheaply, certainly a risk but so is being too small and alone among the sharks. If I had a magic wand then a 15% stake would be about right.
Cheers Seik
APG Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
