Top-up double standards., page-26

goodaye- imho this already IS a reverse takeover.
I confess as to not studying the proposal in great depth.
it is a quite complex deal. there are many issues for s/h to consider.
all sorts of value considerations, and issues relating to Control considerations.

the upshot of this deal is that ERM or ERM Gas gets control of EGO.
I think they get 19.9% of EGO, PLUS they get the Upside Lani is referring to, either in cash or shares later on.

But once the deal goes thru, they get the 19.9% holding - and that's absolute control with a company like EGO, because we have 12,000 s/h, and 6.5B shares. They got control of the board when they had only 10%, so how much more control will they have with 20%?
Then they will get more shares under the top-up, if EGO cannot find the cash to pay them out.
Also they have, and will, issue more shares under Placements - and experience tells us that Placements usually go to recipients who support the actions of the board.

So ERM's Gas division is selling most of its gas assets to EGO- in return for equity in EGO.
The equity it receives as consideration for that sale will give it 19.9% of EGO, and imho it gives it control.
Forget 50% as absolute control.
19.9% will do the job. Who else will fight for control of EGO when ERM is sitting on 19.9%?
IMHO this is a reverse t/o, such that ERM Gas gets to list its gas assets on the ASX under the umberella of EGO - and gets paid for those assets in the form of EGO shares. I bet ERM will later distribute those EGO shares it holds to ERM shareholders.

One big issue for we s/h, is are EGO minority s/h getting any premium for this change in control??

The other big issue already commented on by Lani, is that we need to wait for a value to be placed on the EP389 J/V.
Once we have a value, we will be better able to understand whether EGO is paying too much for the ERM share. And the Topup is part of that payment. Also how will the IER.value the Top-up when it is such an unknown?