RE: Recent post on Facebook group16 Jan 2020 08:50
Clearly there is risk, look at the value being proposed. At the 5.5p level the degree of risk is mitigated to a point where the deal is viewed as viable for AAL.
The 3.5p sp reflected the risk, the proposed deal reflects the risk, the current lack of any other rescue package reflects the risk. Posters saying risk is being overstated are unable to take a step back and look at the facts. I’m not sure the situation could be clearer. If you were reading these posts on a share you weren’t invested in I’m sure you would have a very different perspective on what’s going to happen.
I saw a comment about the panel driving the ‘recommendation’ in the RNS. Again, as hard as this situation is, people need to face facts. The offer of 5.5p is viewed by Sxx as good. Why? Because (as has been stated for the last 12 weeks by many, including me) the alternative is the company going bust. My view is that if there were alternatives we would have heard by now, plus Sxx would never have set out their stall to shareholders that 5.5p is a good price. If there were other bidders the RNS would have stated a clear msg that 5.5 isn’t going to cut it. With the msg that they would recommend even if there was another bidder, what will they come in with? 5.7p 6p??! They’re not going to plough in with 10p. Conclusion- no other bidders post due diligence.
As for the major holders. The investment they have made is a rounding error to their overall funds. They can take the hit and why would they increase their risk. This isn’t their game. As for Gina, she is laughing.
Unfortunately, this thing will be pushed through at a price around 5-5.5p.
Maybe I am wrong and some alternative turns up in an RNS, but IMO I can’t see it.
As expected many holder scratching their heads wondering what’s just happened and how they were sold an unrealistic dream. The BoD did a great marketing job and caught too many investors who were new to investing and sadly investing in what they viewed as a fantastic cause for the region and future generations. For me this last bit is the saddest part of all of this.
Tex.
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