institution investors, page-15

264091, you have to adjust for cash to get a real figure for premium/discount of AZX to GGG.

Post ASX listing (imminent), GGG will have A$21.5m in treasury, and AZX will have approz $7m in treasury. Use todays exchange rate of 1.5364 (the inverse of your figure) and you end up with a post listing valuation of GGG of $91.5m using todays price of 36p which includes 21.5m in cash.

On the the AZX side, mkt cap at 71c is $67m less $7m in cash.

This gives a bid premium for AZX if you accept GGG stock of 35% right now (on an EV basis it is 15%) in my estimation.

35% is obviously going to narrow as I would be astounded if the AZX price didnt move up this week. I have been accumulating AZX steadily as the bid will be accepted by the institutional holders (at that premium they certainly will take it) and in time the whole package will be rerated.

The AZX board had better come up with something really good to defeat this bid, its a no brainer to me at present.