As far as I can see, the things we need to work out are:
1) The likelihood and implications of a delisting and how you would go about disposing of shares when required under that scenario; and 2) Should the 90% threshold be reached, and compulsory acquisition be attempted, what is the likelihood that the offer price could be challenged.
I'm not sure what the story is with the first point at this stage.
In terms of the second point, the Corporation Act states the following in relation to valuing securities under a compulsory acquisition situation.
****************** CORPORATIONS ACT 2001 - SECT 667C Valuation of securities (1) To determine what is fair value for securities for the purposes of this Chapter:
(a) first, assess the value of the company as a whole; and
(b) then allocate that value among the classes of issued securities in the company (taking into account the relative financial risk, and voting and distribution rights, of the classes); and
(c) then allocate the value of each class pro rata among the securities in that class (without allowing a premium or applying a discount for particular securities in that class).
(2) Without limiting subsection (1), in determining what is fair value for securities for the purposes of this Chapter, the consideration (if any) paid for securities in that class within the previous 6 months must be taken into account. *******************
Where is it that those intent on daylight robbery have "assessed the value of the company as a whole"? I’ve seen a lot of references to recent share prices being somehow relevant in determining an offer price, but not a lot on a valuation of the company as a whole.
No doubt Wah Nam have assessed the value of the company as a whole, but they've kept that valuation under wraps and have not applied it in determining a fair value offer.
Can someone point me to their company valuation?
BRM Price at posting:
$2.21 Sentiment: Hold Disclosure: Held
