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Ann: LKO: Recommended Takeover Offer for Rawson Oil & Gas Limited, page-41

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towie

30,381 Posts.

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20/09/18

23:50

Post #: 35739827
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Originally posted by stayer ↑

look I am sorry for those not interested but I just had to post this:

"Obviously, we cannot or do not wish to enforce any voting either way, except to say that Rawson directors unanimously recommend that, Rawson shareholders ACCEPT THE OFFER, in the absence of a Superior Proposal.

In discussions with the company’s directors, we believe there are many benefits of the proposal:

The acquisition of Rawson by Lakes Oil will allow the companies’ exploration positions to be integrated and more efficiently pursued, with focus on both near-term and longer-term potential of Otway Basin opportunities. Specifically, Lakes Oil’s western Victorian exploration wells target the same formations as those to be drilled in the near-term by Rawson at Nangwarry, but are an order of magnitude larger. At this stage the Nangwarry-1 well is planned to be drilled in January 2019, and is representing potential near-term upside for Shareholders in the combined Rawson – Lakes Oil entity

There have been suggestions that there is no manifest premium associated with this takeover Scheme. In reality though, based upon the relative share prices of Rawson and Lakes Oil, the liquidity (or trading activity) of their shares and their respective upsides, there is a premium inherent in the 15 for 1 takeover ratio. Rawson’s Directors believe this is the best way for Rawson shareholders to retain equity in the combined entity and realise an inherent value in a combined exploration portfolio with improved geological and geopolitical diversity

Most notably the RAW board also felt that it allows synergies to be realised across the companies’ respective onshore Otway Basin exploration opportunities, with near-term drilling of the Nangwarry-1 well being a valuable precursor to longer-term realisation of the massive potential of Lakes Oil’s Portland Energy Project

If the takeover acceptance threshold of 90% is not accepted, then in order for Rawson to develop or enhance its project portfolio, it will need to raise significant additional funds – funds in excess of the company’s own market capitalisation. We are advised this will most likely involve capital raising by means of a rights issue. While Lakes Oil has advised it will support a capital raising, it is likely that such a raising would lead to a material dilution of residual shareholders’ interests and erosion of the value of their investment in Rawson.

Additionally, Lakes Oil at the time of 6^th September has around 75% of Rawson shareholders accepting the offer. In the event that Rawson offers a pro-rata entitlement offer to all shareholders, there is a possibility that LKO may reach the acceptance threshold by virtue of existing RAW shareholders not taking up their entitlements, which would directly lower the future value to existing RAW shareholders right now.

Finally, A takeover by Lakes Oil also provides significantly improved liquidity and allows shareholder the choice to exit or retain their equity in the combined holding.

If you are after additional information I encourage you to read:

Bidder Statement

P3 letter from Chairman

P5-6 Summary of the offer

P8 Reasons to accept

Transfer and Acceptance Form at the back of the booklet

Target Statement

P4 letter from Chairman

P5 Directors’ Recommendation & Reasons

P6 Disadvantages

Peloton Shareholder Services is not in a position to be able to make any formal recommendation to you as to the suitability of this offer to you or whether you should take it up or not and would recommend that you seek advice from your financial adviser before making any decision.

Yours Sincerely,

Peloton Shareholder Services"

I have rarely if ever seen such blatant commissioning of a so called independent mob who "arent in a position to make any formal recommendation"....and they have just written a few paragraphs of regurgitation from the directors, selling the deal!!!!!!!

the scares and possible untruths continue

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Hi Thanks for that I will reread and comment tomorrow Cheers Towie
RAW Price at posting: 2.6¢ Sentiment: Hold Disclosure: Held
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