Letter to ShareholdersThis morning we've seen more shareholder...

Letter to Shareholders

This morning we've seen more shareholder money urinated up against the wall in producing a document pleading with us to let someone take our shares for nothing.

Let's take a look at some of Norgard's claims.

1. Wah Nam's Offer represents an attractive premium of 34% based on the closing price of Wah Nam shares on the HKEx on 9 December 2011.

And since 13 December Wah Nam shares have lost 28% of their value on the HKEx.

2. Wah Nam's Offer should provide a more liquid investment than your current holding in Brockman.

There is no more liquidity in Wah Nam's shares on the HKEx than there is in Brockman's shares on the ASX. If you held 50,000 Brockman shares you'll be given 900,000 Wah Nam shares. Over the past six months there were barely 40 trading days that Wah Nam's shares on the HKEx had the trading volume to absorb 900,000 shares. And between October 7, 2011 and December 7, 2011 there was not one single trading day with enough volume to absorb 900,000 shares.

And Wah Nam is supposed to be a more liquid investment? Then we have Wah Nam's ASX listing where there is absolutely no liquidity.

3. Wah Nam's Offer will simplify the current shareholder structure, which should improve funding options to develop the Marillana Project.

Shareholder structure shouldn't matter. If Wah Nam is as adept at raising funds in debt and equity markets as they say they are and have a world class project to raise those funds for, then what is the problem? Significantly though, it may have been a lot easier to raise money with less dilution when the shareprice was heading towards $10. But we all know Wah Nam's attitude to dilution - PRINT BABY PRINT!

4. Wah Nam's Offer provides immediate value certainty and exposure to the potential upside of the Marillana Project.

Complete nonsense statement. Shareholders currently have the market price value of their Brockman shares and have full exposure to the Marillana Project.

5. The Independent Expert has determined that the Wah Nam Offer is fair and reasonable.

Absolute garbage, ask yourself why previous broker reports that valued Brockman significantly higher were pulled from Brockman's website in the lead up to this takeover.

6. No superior proposal has emerged from another party, and is unlikely to emerge.

No problem, we're happy to have Wah Nam get on with the job of creating value for Brockman while we continue to hold Brockman shares.

7. Wah Nam's Offer has the unanimous support of the Independent Directors.

Any respect left here? Who gives a toss.

8. There are risks in not accepting Wah Nam's Offer, which may include liquidity in Brockman declining even further, potentially making it more difficult to sell your Brockman shares after the Offer period ends.

That's what Wah Nam told us last time, singing from the same songbook now, eh? Brockman's shares are no more illiquid that Wah Nam's and if Wah Nam/Brockman management get on with the job of progressing Marillana the minority holders should still find themselves with a marketable parcel of shares in the future.

http://brmcollective.blogspot.com.au/2012/02/letter-to-shareholders.html