It occurs to me that the leaks to AFR Street Talk are all coming from the Skip/Stonepeak camp as they seek to cynically manipulate the large retail GNX shareholder base into a warming for their offer. Conversely, the GNX team and their advisors appear to have a tight ship as they seek to discharge their obligations as directors.
The absence of an announcement today suggests to me that GNX is not just rolling over. The negotiations that are occurring under the protection of a trading halt are no doubt very complex involving matters such as exclusivity, possible director support for a bid at a certain level, time scales, maybe even negotiating a SID, etc. Questions of value will require directors to have obtained independent advice. Remember this bid was sprung on GNX by Skip/Stonepeak so it’s not like the GNX groundwork was in place.
We shouldn’t be angry that GNX isn’t rushing to conclude any negotiations.
For Skip/Stonepeak to succeed with a scheme of arrangement, they need support from the remaining 80% they don’t currently own of 75% all votes cast and 50% of all shareholders by number. If retail investors aren’t convinced that the price offers is a fair exit price or they simply just don’t want to sell then we need rally the cause for a no vote. Given the wide retail base, then it’s not impossible to vote down a scheme proposal.
GNX Price at posting:
22.0¢ Sentiment: Hold Disclosure: Held
