Takeover choices and their implications, page-2

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g12m0

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22/04/16

11:44

Post #: 17577669
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Originally posted by Thwhack ↑

could someone please either shed some light on the implications of accepting and not accepting the offer or post a broker report that covers the questions below?

1. If you accept and they reach/exceed their 50.01% acceptance then you simply get paid $1.50 per share, but when would that payment be made?

2. If you accept and they do not get their 50.01% you simply get your shares back; right? But how long would you have to wait before they are returned and would their still be continuity of your holding for GST purposes?

3. If you do not accept and they fail to reach/exceed their 50.01% target then there is simply no change; too easy.

4. If you do not accept and they successfully acquire more than 50.01% then what happens to the stock and your holding?
- will the shares still be traded on the ASX?
- if no to the above then where will they be traded?
- will their name change?
- could your shares be compulsorily acquired at the offer price?
- if yes to the above, what percantage acceptance would enable that to happen?

5. With Allan Gray (19%), Invesco (11%), Dimensional (6%), Vinva (5%), and State Street (5%), combined owning 46% of the shares there is no chance this take over offer will succeed if none of these institutions accept the offer. Allan Gray has already gone on record saying that they will not accept the offer. Dimensional appear to be an unlikely seller as that would require a price that pushes their Price:Book ratio firmly up into their sell range. The other three are less certain though. Does anyone have any insight on the intentions of Invesco, Vinvia and/or State Street?

6. Is there any real chance of a competing take over offer emerging? If so then who is the most likely bidder?

Any thoughts shared on these questions would be greatly appreciated.

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On 2. For CGT purposes, it will be treated as if you had held the shares continuously.

BRS Price at posting: $1.26 Sentiment: Buy Disclosure: Held
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Takeover choices and their implications, page-2

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