Forget about November, a takeover suitor will already know what the company is worth. Which is about 20 - 25c, 'if' there's no competition. Probably within a month the company should have all of their options neatly written down in longhand to satisfy due diligence. Naturally the external agency doing this DD work will have all of the legal credence in the world, given their firm remit has been to maximise shareholder value according to the known body of evidence.
In other words the directors have called for an indisputable set of options before they sell out.
Going through the motions, they call it, where all of the options and valuation steps have been covered, thus making the resultant moves happen in a hurry. All the while protecting the corporate governors.
Make no bones about, Alinta has some very valuable assets, which if bought at the same time as debt in a corporate play, makes for a very good growth by aquisition strategy.
The simple business fact is this company turns quite a bit of cashflow but it suffers badly from lack of capital to get back on an even keel, therefore I'm betting they will be swallowed. Indeed, these days how do the bigger fish grow in a hurry.
No doubt though, many will read the "deleveraging" proposals otherwise
AEJ Price at posting:
5.2¢ Sentiment: Hold Disclosure: Held
