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Takeover offer?!, page-42

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saintly96

269 Posts.

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31/08/15

13:43

Post #: 15905413
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Originally posted by saintly96 ↑

Gents you can make your own mind up on whether to accept the takeover but lets get the maths right on the "$100m" deal:

They are spending $100m such that in 5 years time they will be the beneficiaries of 75% of that spend - not you. They are basically losing (ie paying) $25m of that for the 75% stake in the tenements in their present form. This values your current 25% stake in those tenements at $8.3m - in 5 years time! do the NPV calculation and depending on your discount rate it is about $7m.

You currently have $8m cash - not the larger figure cited above although this is being pissed away at a rate that will leave it basically gone in 5 years.

At best the other deal values you at $7m for the tenements + $8m in current (though dwindling cash) + $15m or so upfront payment = A$30m.

Westside deal trumps this - gives you access to cash (rather than sitting in a holding company) and removes all risk. Removes the blue sky of course and don't blame those who want to stay in for that - but the idea that you are comparing the Westside deal to '$100m' is incorrect.

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sorry - forgot to convert the $8.3m ($7m discounted) into $A. Brings the total to about $33m

AJQ Price at posting: 6.8¢ Sentiment: None Disclosure: Not Held
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