sydney roadshow, page-11

Hi Reiners,

Was doing a brain dump but perhaps should have clarified the point: "Reality is there is nothing stopping ECE from performing a takeover ..."

The context was a question by an investor of "what is stopping ECE from making a takeover bid the day after the transaction is complete?".

ECE responded first saying it's not their intention to do this, they want to keep things going as they are but inject funds and expertise to the team.

GBE bluntly stated there is nothing stopping it from happening. They've also noted that other structures of deals had been discussed (including takeover presumably) but the strategic partner model proved to be most beneficial to all parties.

Reality is that ECE could very much make a bid especially as they have a majority on the board. However from my perspective having thought about it overnight:
1. They could've made the bid for the whole company all along but didn't.
2. Remaining shareholders still need to approve a takeover deal and agree to sell their holdings.
3. There would be a "class action" option (I think based from memory of cases like GIO) should the directors accept a lowball offer that is not in the interest of the remaining shareholders.