RXM has a market cap of $137m. as at 30 June, it had $70m cash...

RXM has a market cap of $137m. as at 30 June, it had $70m cash The market is saying that the value of RXM is $67m.

One option is for OZL to do a t/o of RXM that comprises a cash return of say $60m to shareholders. This reduces the market cap to $77m and the sp 39.6c.

OZL then offers a t/o premium of 30% or 51.5cps for a t/o price of $100m.

(A company would not normally offer a 30% premium on the cash on the bal sheet.)

So, with the $750m on the OZL bal sheet for M&A, it could be used to purchase RXM and fund Hillside, and not touch the cash flow from the current operations. The OZL bal sheet is not stressed and OZL still has cash for dividends and for development of C.

HT1

p.s. Good to see OZL break and hold $8 today.