Where to now for CZA, page-8

I'd be surprised if Ichor just go for the cash offer. I would expect them to want the loan notes.

I think the cash consideration is likely to be relatively low anyway, the presentation back in October showed the below split of the share register.

Ichor - 29.99%
Amed - 28.1%
Other Top 20 - 20.7%
Exec Mgment - 4.5%
Free Float - 16.8%

I think Amed have already indicated they will take loan notes, I think Ichor will also and probably at least hald of the other Top 20 will also. I think Exec Mgment will also take the loan notes, so if we assume half of the Top 20 take cash and so do the Free float then at 20c thats around 27% taking cash so somewhere around $27.5m, some of those will be restricted shareholders so max would be $34.2m.

Clearly if Ichor accept the cash consideration then you are probably right that CZA don't have the cash to satisfy them but I don't think they will. They will either accept and take the loan notes or reject the offer and remain a minority interest in the company when it is taken private which I am sure if will be.

CZA only need 50% of Universal shareholders to accept the offer so don't have any real need for Ichor and IMO its in Ichors interests to take the loan notes as they have a strong yield and the market to sell UNV shares would be non-existant.