something to bring up your lunch , page-19

reader, re this:

"If that happens, then WNI will eventually have to buy you out (ie there is no difference whether listed or not)."

Are you sure that is the case? Would you mind providing a link? I do know that a delisted company must provide a list of possible buyers, as there is little liquidity, however they may be few buyers on any list to buy delisted shares- maybe just WNI?

CRE was threatened by FML to be delisted, but a buyer came in (maybe Stone?) and bought up many of the remaining shares to about 10c. Under the takeover offer from FML, those shares would be currently bought at takeover price (80% of FML SP) at about 4.2c. However, not everyone has a Stone around, and hoping for such a buyer is risky. CRE might still get delisted, for all anyone knows, as there will be few holders left.

There was another company on the ASX where the shares were delisted, and a dividend was paid out to the remaining holders. That was pretty lucky, I thought.

I have seen people discuss not selling out, and awaiting for a higher offer down the track (the Cliffs example is often cited). There are, however, two examples I know of, where something else has happened: as a 90% threshhold was not reached by the suitor, the remaining holders have been left on the ASX, and are used for capital raisings. The raisings are often something ridiculous like 1 new share for every 17 held, and the major holder- the suitor- always participates. The additional shares and little opportunity for smaller shareholders to maintain their position, leads to the suitor owning more, and creeping up to 90%. They could then do a compulsory takeover. Two examples of this are BWN, and ENE. It might be worth taking a look at those HC forums. It's a way a hostile suitor can play the game. There are few shareholders left to be able to complain and protest.

I write this because if people think that by holding on, they can just wait and get a super outcome later, this may not happen. I started reading about mop-ups of remaining shares, wondering if there was a buck or two that could be picked up, and saw the ENE and BWN examples. I am not sure if compulsory acquisition could involve a higher SP to those holders down the track, but I do know with ENE that te private equity firm who owns most of it (the suitor), as said it will continue to use ENE to raise capital- even after their latest capital raise. As the capital raise is always at a discount, remaining shareholders keep doing it tough.

I'm still hoping AGO might come in and save the day for BRM holders. It's hard to know what is a "safe" level to buy BRM at. $1.50 is clearly the "safe" level, as that is the cash part of the offer, but a new suitor would swoop at that level anyway. I can't believe BRM fell to $1.60 at one point recently. Te good news is that WNI have not said it is their final offer, which gives some room to move, and can maintain buying interest. Maybe hedgies will enter at some point?