I don't have a huge holding and if I did, I may have reacted differently but I think I will hold onto my AMX for the time being and see what happens. The offer is scheduled to close on Thursday so the decision really does have to be made now. As of today, Centamin only holds 51% so there does appear to be some resistance although plenty of shareholders will accept in these last couple of days.
What will almost certainly happen to those like me who remain in AMX is that the stock will almost certainly be delisted from the ASX and we will have nowhere to sell but to Centamin. If they decide they want to develop the AMX gold prospects which seems likely, then I presume we will be faced with a very large capital raising and it won't be made in any great way to encourage us. So we will face a major shareholder very happy to get rid of us and it is easy to understand why. Putting up with us will increase their costs and stop them from total control. If they do get to 90% of course they will compulsorily acquire us.
But on the good side we now have a very major shareholder capable of raising the funds to develop what our current AMX board could not. I feel that I would rather stay in this situation that lose a large portion of the AMX properties by accepting the Centamin vote. Clearly they think that buying in to these prospects is good value and their timing was brilliant just before gold shares took off.
GPASAS
AMX Price at posting:
20.0¢ Sentiment: Hold Disclosure: Held
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