1) You ask "Will NAOS take control of CGA" Suggest Switzer already has moved - they have burnt cash in CGA, and these events have put some extra risk into their Switzer Asset FUM business - with the rapid disappearance of the CGA CIO, and a SKY NEWS prized commentator on world politics, economics and funds management. But, they have more to lose , and to gain, than NAOS, with a far bigger potential FUM business ( marketed mostly through credibility of the Sky Business connection ( GB no longer - they need a quick move back to totally their own team? ).
2) As to NAOS wanting more than a "lease" They WILL have it if CTN shareholders approve Resolution 8 -- "NEW IMA" up for approval at the CTN AGM Initial Term 10 years, with automatic roll over for a second term of 5 years. No reviews of performance ever. Cancellation ONLY POSSIBLE in the second term with an "EARLY TERMINATION FEE" equal to all remaining fees for that 5 years. Most independent Directors would call that a FIFTEEN YEAR TERM? AND not approve it. But CTN DIRECTORS think this is acceptable for their shareholders !!!!!!! No doubt NAOS Directors on CTN Board did not vote on this contract, that they had written in a different Board room. BUT, go look who was elected last March to be the new MAJORITY of "so-called INDEPENDENT Directors of CTN! AND who unnecessarily waved through this extra-ordinary proposal. When offered the deal, all CTN Board had to say to CGA was ---
"Thanks for your advice that you cannot deliver in Micros. We'll find some managers who will easily out perform your last 15 months, and at vastly lower fees. Please shut the door on the way out. "
No fancy payments -- just good business practice and ethics.
DYOR
CGA Price at posting:
60.0¢ Sentiment: None Disclosure: Not Held
