RE: Re: Gecko, Gradecontroller20 Aug 2016 15:08
I agree with GC, from the 2 options I think MNG will take option 2 and take AUE private and drive the sp as low as possible and do a placing for equity, if MNG drives the SP to 1p like GC said thats is like 70% down on their original 55% holding/investment that they paid for which is insane. If MNG or with a partner get its holdings to at least 80% they can take AUE private, with a NAV of 7p per share and increasing POG i think 7p is fair and i doubt that blackrock and herderson will sell their shares at a loss. There are a few things that can drive the sp lower to 1p or rise from current sp:
1) placing for equity, at what price and how many shares which can dilute the NAV and SP
2) four months default waiver with the lenders from june to september, so what will happen next?
3) achieved steady state operations for a continuous period of 60 days, when was this started and what day are we on now?
4) IFC is still taking its time selling its remaining shares
This is all my opinion, if anything is wrong please correct me, if there any more factors that can drive the sp lower in the next couple of months please add, cheers, dotlink.