Agree that the so called premium is not a real premium. But that is not the market view, just approx. 10 days ago, the share price of DLS and BPT has started to tag along for the ride, where the price is exactly the same, who has thought that 1 DLS =1.25 BPT is to be tabled, else the BPT share holders would have abandoned ship and jump over to DLS.
In addition, the DLS is recommending it because they got the sweetener:
"Under the Scheme, the Beach Board would be reconstituted with Jim McKerlie and Phil Bainbridge
from Drillsearch to be appointed as new Beach Directors and two existing Beach Directors to resign
from the Beach Board. Glenn Davis would continue to serve as Chairman of the Beach Board
following the successful conclusion of the merger. "
With BPT holding approximately 4.6% of DLS and the DLS directors are supporting it (as below), the merger is kinda done deal.
"The Directors of Drillsearch unanimously recommend that all Drillsearch shareholders vote in favour
of the Scheme and they intend to vote the Drillsearch shares that they control in favour of the
Scheme, in the absence of a superior proposal and subject to an independent expert finding that the
Scheme is in the best interests of Drillsearch shareholders. "
DLS Price at posting:
82.5¢ Sentiment: Hold Disclosure: Held
