In the event you chose to take the cash and shares mix in the Blackstone controlled panel business you will be holding shares in an unlisted company.
Unlisted companies typically trade at big discounts due to illiquidity issues.
How on earth do you redeem your scrip for cash if you elect and when that happens? Is the 10.7 times EBITDA guaranteed for shareholders as the share price basis in the new unlisted vehicle when they want to sell out and will non-controlling shareholders be privy to the pricing and margins earned on all related party transaction arrangements entered into between this entity and the Blackstone Goup based in New York?
The independent valuer will be applying valuation caveats to the deemed offer price of 86 cents galore to the panel business and the ASX trading price risks for the proposed newly listed ACAD business.
Seller beware here, the 86 cents and 31 cents amounts for each component are not a clean cash deal and therefore have hairs on them.
I despise seeing this type of stuff marketed to shareholders when the risks attached are unlikely to be clear to those that lack experience and sophistication in valuation issues.
Blackstone should be forced to offer a clean cash bid of $1.17 minimum and move to then relist the ACAD business if a majority of non- director related sellers voted for that pathway as an alternative.
AMA Price at posting:
$1.01 Sentiment: Hold Disclosure: Not Held
