Ann: FFG's Subsidiary iCandy To Acquire Games Studio Inzen,ICI-FFG.AX, page-2

If this goes through (what chance of that?) it will be interesting to see how they work out the ICI 5 day volume weighted average price, given that iCandy usually doesn't trade for days at a time. A couple of in-house ICI trades at say one cent could see near 600 million new ICI shares issued to satisfy the $6m (Singapore $s, about the same as AU$) consideration. Announcement says a lot about the current shareholders in the takeover target: given they won't be shareholders in the target if the transaction goes through, they hardly seem relevant to the takeover. But gives you a sense of what ICI might be thinking: is this really a takeover of ICI? Will the existing ICI shareholders (i.e. FFG and the few who bought into the IPO) be all but diluted out of existence? If so, then the existing shareholders in the takeover target are highly relevant after the takeover because they will be the new owners of ICI. Can't see what FFG gets out of that unless it reckons the current ICI is worthless and FFG would be better off being highly minority owners of an ICI merged with the takeover target. That feels to be what the announcement is telling us. Thoughts?