As I said in my initial reply, a scrip offer does not make sense because you are then just cancelling scrip (CSE's) and then reissuing scrip (the TKO consideration).
Now, firstly CSE shareholders would want the offer to be at least at a premium to gross asset value (ie cash plus shares plus say 20% or so) so no SYR couldn't get the scrip 'swap' at a discount.
Secondly there are the corporate costs to consider...ie legal costs, consultant advisory costs etc.
Thirdly, removing CSE as a major shareholder (in exchange for a bunch of smaller shareholders) weakens the registry.
Finally, and most importantly (and as mentioned in my initial reply), theres the other reason to consider and that is that SYR management (and CSE management) want to maximise the value of BOTH companies and that will involve a project being vended into CSE at some stage (if its not taken out by a strategic partner beforehand) in exchange for CSE shares (again as tried with the mineral sands project).
Cdchi1
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