just my interpretation if today's LCY announcement of HAW proposal takes place - all a lot of questions right now....
1. HAW to own 100% of MtBevan only - the remainder of HAW assets to be spun off, which LCY holders won't participate in?
2. LCY to pay for 60% interest in HAW, with majority board representation which effectively gives LCY control of both the MtBevan project and the company, since HAW have only one project, MTBevan?
3. It's likely that LCY will spin off its other assets into a new company - I think it's indicated that already? - so LCY holders could expect an in-specie distribution from any LCY spin-off. But these other assets aren't too flash so I wouldn't be expecting much from that?
4. LCY effectively becomes a holding company for 60% of HAW. Because LCY pay for their 60% of HAW then LCY shareholders will participate in some in-specie distribution of HAW shares. Not sure whether by free distribution or not?
5. If NMDC go ahead with the MAK deal then LCY holders can expect a similar situation there, with LCY holders getting in-specie participation in MAK shares?
6. So LCY eventually becomes simply a holding company and potential funding source for other companies? down the track which company/companies is it best for current holders to be looking at investing in? the eventual performance of say, HAW and MAK would determine the value of LCY/NMDC shares?
just a few questions I'm asking myself.... hope I haven't got it all wrong.
LCY Price at posting:
13.0¢ Sentiment: None Disclosure: Held
