QANTM's response. Hope they duke it out. $2.00 is too low IMO...

QANTM's response. Hope they duke it out. $2.00 is too low IMO and IPH is on the back foot.


QANTM makes two initial points below in relation to the IPH Proposal.

1) The IPH announcement understates the implied QANTM / Xenith merger consideration.

The IPH announcement states that the IPH Proposal represents a total value of $1.97 per Xenith share and asserts that this value is “23.3% in excess of the implied QANTM Merger consideration.”

However, the 23.3% premium stated above is calculated using the closing price of QANTM shares on 26 November 2018, while the IPH share value is based on the IPH closing price on 11 March 2019.

In considering the value of QANTM’s offer to Xenith shareholders, QANTM’s recent share prices are more relevant than the QANTM share price on 26 November 2018, particularly given QANTM’s strong 2019 half year results which were released on 22 February 2019.

• Based on QANTM’s: Closing share price on 11 March 2019 of $1.66, the implied merger consideration per Xenith share under the QANTM / Xenith Merger is $2.03
• 1 month VWAP to 11 March 2019 of $1.64, the implied merger consideration per Xenith share under the QANTM / Xenith Merger is $2.00

2) The IPH Proposal implies very similar risks regarding Australian Competition and Consumer Commission (“ACCC”) clearance between a QANTM / Xenith merger, compared to an IPH / Xenith combination.

The IPH Proposal states that it “is subject to the same informal clearance review process as that requested for the QIP Merger proposal. It is IPH’s expectation that the ACCC’s assessment will involve consideration of the same or very similar issues as the QIP Merger”.

In relation to the above statement, QANTM notes the following: the provisional date for the announcement of the ACCC’s findings in relation to a merger between QANTM and Xenith is currently scheduled for 21 March 2019.

The equivalent date for the announcement of the ACCC’s findings in relation to a merger between IPH and Xenith is not until 2 May 2019; andQANTM cannot prejudge the assessment of the ACCC. However, a takeover of Xenith by IPH would lead to a materially different market structure than the merger of QANTM and Xenith.