• The Offer is being made on the basis of 1 new Cambrian shares for every 9 AGD shares, valuing each AGD share at A$0.42 and 1 new Cambrian Share for every 19 AGD options (valuing each AGD option at A$0.20)
• The Offer values AGD at approximately A$61million, based on the closing price of a Cambrian share of 159p on 25 April 2006 and exchange rate of A$0.4167 to UK£1.0
• The Offer represents a premium of approximately 31 per cent. to the closing price of A$0.32 per AGD share on 24 April 2006
• Cambrian has undertaken during the currency of the offer to apply to list on the ASX (subject to ASX approval)
• The independent directors of AGD unanimously recommend the Offer (subject to a satisfactory report being received on the terms of the offer from the independent expert to be commissioned by AGD and in the absence of a higher offer)
My opinion is, I think the offer is very opportunistic and not in the interests of the share holders.
Unless the company does a re-valuation of the ore reserves the share holders will never know how much they should really get for their shares.
Cambrian value the company at 61 million after they dumped in 13 million of their odds and sods to get 20% of the shares. This means that in January they thought it was worth 65 million before the ore body was exposed and they had no idea of the potential increase in worth. Phooey!
Now they know they are onto a good thing, they want share holders to sell out cheap and give in after they have taken the risk with this company. TRY AGAIN CAMBRIAN! 3/10 for that effort.
This is a classic negotiating technique where you come in with a low offer and see how the muggles react to it. I am very surprised that the board has recommended acceptance this early and question their motives in this after their hefty options issues to themselves in the AGM. 3 for 2 LOOKS BETTER
I think Cambrian want AGD on the cheap!
AGZ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
