Would suggest you go back and do some simple mathematics courses. I agree that he full value may not be taken up however on the calculations you have provided you are assuming the total FAS share price is based upon 25% share in GWR. There is no dilution of value in FAS for every share they pick up - the dilution would be relative to the existing FAS assets not the 25% share of GWR - as long as the 7:1 offer is equal to the GWR asset base. Now what happens when you increase that base and we keep the same equity ? It will be wooshka in FAS books or share price will it not??
Now if FAS own 25% GWR and the price increases $1. That would be 25 cents would it not? Then divide it by total shares on offer and allow for a 5% contingency factor as the market would never reflect the true value. So one can see a 5:1 ration here. Now FAS is offering 7: 1 are they not. Factor in the oil exploration, uranium, any gold announcements and say a 5 cent rise is reflected by FAS. Guess what the 7:1 offer to GWR is actually looking pretty good.
the other thing to consider is any attempted takeover by a third party or JV to develop the mine. FAS have the voting power (and the king thinks it is actually round 40% when board is reshuffled) - GWR would pay dividends at some point in time in the future - guess what as FAS equity increases so is the dividend payment - so GWR will actually fund the FAS bid - we do not care whether this goes on 10 years - the board of GWR is strangled till this is resolved.
FAS one announcement - new takeover bid - GWR will never have time to develop this resource - plus negotiations to cross our tenements are going to take considerable time!!
I suggest you all start listening otherwise - the King told you before - next capital raising at 1.65 - and guess what - we will still own 25% or thereabouts !!!
I say Merry Xmas and Happy New Year - when you talk about GWR are you talking 100% GWR or the 25% we own !!!!!
GWR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
