I think these developments may turn out to be very good for both classes. Before the activism by Blue Pacific management were incentivised to keep the status quo to keep their jobs. Shareholders have suffered huge losses in prior years and were incentivised to keep things as is and maybe with a few opportunistic buybacks of PXUPA they could eke out a reasonable return. The situation now is that the activists are getting more vocal and litigious are unlikely to stop even if this particular challenge doesn't work. There are also likely to be more activists on the way as the hidden value in the company is uncovered. This could tie up management resources and mean low shareholder returns for years to come. And imagine if a challenge is successful and the market cap is halved from here after shareholders have already suffered immensely.
This is just what is needed to bring everyone to the table. I am hopeful of a deal being done by the end of the year.
Holding PXUPA only atm but PPX is looking cheap at these levels
SRS Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
