Hi PBlonde, perhaps some pretend to have a limited...

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14/06/18

14:39

Post #: 33711538
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Originally posted by PBlonde ↑

It worries me that some people who decide to trade or invest shares have such a limited business understanding. AMAL is not buying any shares with cash, they are acquiring shares in TAW by issuing TAW holders with AMAL shares hence any valuation of what the deal is worth at the current day is pretty meaningless.
The 37c that they're quoting in articles is the value of 1.1 AMAL shares as at today which is what has been proposed in the merger papers. When the time comes to merge if you hold 100 TAW shares, AMAL will acquire all those shares and issue you with 110 AMAL shares no matter what the price of TAW shares of AMAL shares. If AMAL's share price increases between now and the merger, the TAWs share price will also increase and it will trade higher.

If you think that Bald Hill is going to continue to be profitable under the current JV arrangement, I don't see why you would think it wouldn't be profitable if operated under the one company which Mark Calderwood directs wholly as would be the case with his proposed appointment to MD of AMAL. Especially considering people seem to have this thought that currently AMALs board is holding back Bald Hills progression. By removing most of the AMAL board members and placing most of TAWs board it'll be not only a more stable company but one that is able to save costs and be more easily managed.

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Hi PBlonde, perhaps some pretend to have a limited understanding. As they say, don't always believe what gets posted on HC.

But as always DYOR.

TAW Price at posting: 36.0¢ Sentiment: None Disclosure: Held
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