Can someone help me make sense?23 Nov 2022 20:20
The company is in the middle of strategic review so why give away 6.3% of the company in the meantime at a knockdown price before the review is conducted. There may be some sense in the action if the price offered was irresistible. They have given 6.3% of the company at under 17pence when Cascabel alone is worth hell of a lot more than poultry 17p. It may be that the company is in dire need of cash but then there must be cheaper ways of raising bridging finance till the review is completed, after all we have tier1 assets.
There is some talk on the board that this has been done to entice BHP to bid. What a price to cut one’s own nose to spite the face. In any case - BHP have got their slice at much higher price than Jiangxi, why should Jiangxi be in any more hurry to bid than BHP. IMHO all it has done is introduce yet another player to make takeover difficult – May that is the answer BOD is looking for in strategic review