Doravale was set up 25 August 2000 as part of the demerger of Timor Sea Petroleum (TSP) and MEO was spun off as Escape 3D as it was known at that time.
The reason for the scheme was to have a backup of funds if and when they were needed.
The scheme was renewed after five years in 2005 and todays announcement confirms that the company doesn't need the trustee scheme any more and have decided not to renew it, hence the sale.
So it is just housekeeping.
The AU$3.4m will go into MEO's bank without any dilution of shares and the fact management have disolved the scheme shows confidence going into the future IMO.
What it has meant this morning is some cheaper shares from holders selling before they understand the reason behind the 10m sale ...... or is it a dump to try and catch out the unaware?
I wonder how mitta will look at today's volume on the chart?
#:>))
MEO Price at posting:
36.5¢ Sentiment: LT Buy Disclosure: Held
