I should add...
To get this in perspective...something like just 50m shares (fully diluted) are not actually held by those close to the company, or indeed the parent company itself.
As such, the difference in cost to the company of a 55c or 75c offer is just $10m...yes that s not a typo, the difference in net terms is just $10m given they are in many ways effectively taking the lions shares of any takeover offer.
At $75c, the net cost to the parent is just $37.5m...not all that much of an expense in combining the two entities and in the process, likely adding multiples of this to the underlying business model.
In light of this...if there were any concerns at all in gaining the numbers required to get this through, I suspect they would not hesitate in a higher takeover number.
In fact, I see arguments for the corporate health, market attraction and even tax benefits for INR to pay a significant premium for GUJ...the vast majority of which would only be a paper premium anyway.
lol...of course, I guess we should consider the chance it is not in fact a takeover...and just a JV of some sort...but in all reality, this would simply not make sense given the parent company's clear objectives.
It will obviously be discussed at the AGM's...I wonder if we will get a release today?
Cheers!
GUJ
gujarat nre resources nl
