Ann: Update on Takeovers Panel Proceedings, page-10

Just a note on the Buyback. The 10/12 rules apply. A company can only buy back a max of 10% of its shares over a twelve month period. Assuming they use the current shares on issue a a basis for that then there are 3,485,170,081 shares on issue. That would mean they can only buy back 348,517,008 shares. Now I can’t imagine TIO or OCJ selling into this. So if ALL retail shareholders decided to sell then they would get a bit under 50% taken up. But it is unlikely that ALL retail shareholders would want to sell. If only 5 or 6% decided to take that offer then they’d get all their shares taken for 7.5c. Now the total number of shares available to purchase could be less if the company has to use the shares on issue as of 1 year ago. But not much overall difference.

It begs the question though. Why sell into the Buyback? Just ask yourselves about the BCK market cap and compare the Marillana resource with PIOP, IMO. That’s why we must work and lobby hard to prevent the De-List.

All the above may be wrong so I welcome comments and amendments.