Just last year there was discussion between "Matax" doing a reverse takeover of BGG which at the time estimated the value of BGG for approx 475 SDG.
In 2012 BGG Purchased a shipping company for 25 mil aud.
Now currently with the price of coal soaring to new heights, the CEO is so adamant to push this deal through and value BGG for 37 mil??(joke of a price if you ask me)
So Vibrant will get the shipping company worth 20-30mill aud plus all the coal assets thrown in for an absolute bargain price of 37million aud.
With the favourable commodity price of coal trending upwards in Bgg favours at the moment, why would BGG Be so keen to finalise this deal? Whats in it for them? When it is obvious that BGG coal assets are massively undervalued .
This doesn't make any business sense at all to me, especially when there isn't even any indication of counter offer to the proposal.
What's in it for management? That they are so keen to push this deal through.
By law they have a duty to inform and serve the best interest of shareholders/company and be completely transparent in there dealings with Vibrant.
They better have a good explanation to the shareholders, specifically why this would be beneficial to BGG and the people that have invested in BGG for this takeover to proceed.
