This is the second time in the last 6 months where CIMIC has launched a final unconditional offer as their first and hopefully only bid. This is an opportunistic, some what tongue in cheek bid. They actually might pull it off unless the 1H results are better than their October trading update. Here are the challenges I see to a higher bid:
If MAH board does not move quickly with a response, CIMIC's ownership could increase where an alternate player may be scared off - they have a bid for 944 million shares at 14.5 cents sitting there picking up sellers
Forager and the other large shareholders are in money at 14.5 cents, ultimately they will roll over to a buyer.
Given the MAH team have cleaned out their skeletons (Calabar exit and Telfer renegotiate) over the past 12 months, it may be difficult to convince an alternate buyer/shareholders the worst is over
The MD is ex Leightons - the evaluation of the CIMIC proposal should exclude him. I would not be surprised if a few informal phone calls were made prior to the bid
If they have the same net cash position of $53.7 million that is 4.475 cents per share that goes into CIMIC bank account. Plus the tax losses that can be used to offset tax on profits, and a MAH investor should be annoyed if they acquire MAH. I cannot see the board rejecting this bid - time will tell, but the clock is ticking.
Originally posted by wgly
↑
This is the second time in the last 6 months where CIMIC has launched a final unconditional offer as their first and hopefully only bid. This is an opportunistic, some what tongue in cheek bid. They actually might pull it off unless the 1H results are better than their October trading update. Here are the challenges I see to a higher bid:
Expand
(20min delay)