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$2.46 xenith ip group limited

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129 Posts.

11

31/03/19

16:41

Post #: 37942921
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Originally posted by NoPhoenix: ↑

So QIP merger is unlikely to happen as IPH has 20% of shares and only needs 5% from instos who would love the liquidity that IPH shares offer (as well as the potential upside).

IPH deal is less that certain with ex-principals holding over 40% of the shareholding. There is a lot of history between many of these ex-principals so for many of them to vote to merge with IPH might be stretching the friendship although you would have to think the cash and liquidity would be a good thing. Further, the XIP board is siding with QIP... although I suspect this is more about seeking a better deal for themselves ie a board position on IPH board.

If no deal gets up the XIP SP will drop likely drop like a stone as it is being propped up by merger talks. Also they are back to one of three with limited prospects of achieving better than CPI growth.

IPH then has a bucket load of XIP shares that will be worth way less than they paid for.

This is interesting to watch how this plays out!

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my money is on this outcome: Xip gets offside with Qip because deal goes sour due to IPH.

IPH gets cozy with Qip and blocks out Xip. IPH gets what it wanted in the first place - Qip.

needing popcorn watching this unfold

XIP Price at posting: $1.90 Sentiment: None Disclosure: Not Held
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