In the interests of clarity, ASG have not received a takeover offer, they have received an "indicative, non-binding and conditional proposal". That of course might lead to a takeover offer, and the company recently (on 30 Nov) confirmed that due diligence is continuing.
With regard to price, the proposal of 1.03 was made prior to the recent issue of new shares. At the time of the 1.03 indicative proposal, the company had approx 177m shares on issue (based on 3B announcements). Following the entitlememnt offer, they have approx 206m shares on issue. My back of the envelope calculation is that 1.03 on 177m shares equates to 88.5c on 206m shares. Thus, in my eyes, the indicative offer on the table is therefore around 88.5c, not 1.03. Thats still a nice premium over the current share price and I have recently added to my holding as the risk/reward balance appeals to me. DYOR.
As an aside, thanks mita for posting that AFR article from 23/7/12. At that time, I was watching ASG but was not a shareholder, and bought in later after the big drop in ASG's price. I wish it had been UXC on my radar! The article quotes an analyst as saying UXC was the most attractive target of the mid-sized IT companies... its share price has just about doubled since that article was published on 23 July!Perhaps UXC is no longer such an atrractive target at twice the price, making ASG comparatively better value for a potential acquirer?
ASZ Price at posting:
58.0¢ Sentiment: Buy Disclosure: Held
