The MGX offer has been around for a while now and from watching the price of MGX, everytime the market gets the feeling that they'll achieve control, the price seems to rise. And then when the subs shareholder notices come out, they fall.
I hold both stocks and am deciding between:
1. Holding AZR and hoping that when they start production and shipments that they are re-rated
2. The combined MGX/AZR group will be re-rated due to market cap and index managers needing to buy in and/or best pure play exposure to Aust iron ore.
To complicate things further, having the Russians and Chinese position themselves with substantial holdings makes the whole situation very messy. I would have preferred that someone clean up both, particularly when Cambrian clearly placed their holding on the market.
I'm now at the point where loyalties are behind me and trying to work out what is best for the money invested in both companies.
I'm assuming institutions are also having to make a tough call as effectively MGX has control of AZR and I'm not sure having a parent with 40%+ is a great outcome for either MGX or AZR and I can't see MGX raising their bid (which would anger their shareholders).
It seems to have gone quiet on all fronts so I'm interested in the thoughts of others?
Cheers,
Robert
AZR Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
