I have analysed the Twenty Largest Shareholders lists included in the GBG Annual Reports from FY2018 to FY2012 with the intention of gauging the costs of their share ownership and consequently their inclination toward the buy out offer at A$0.026 per share.
In particular, I have compiledthe cost for MS LINLIN LI, the second largest in the FY2018 list with 94,346,132 shares.
Based on the Form 604 Notice of change of interests of substantial shareholder provided in the ASX Announcements from 3 November 2015 to 28 April 2016, she had purchased 92,346,132 GBG shares from FY2015 to FY2016 at a total cost around A$2,747,022 or A$0.0297 per share.
As for the rest of non Ansteel Top Twenty Shareholders, I use the volume weighed average price of GBG share, i.e. total transacted value / total transacted volume over the period of each list to calculate their holding cost per share as at 3 September 2018, the date of the latest Annual Repot 2018.
The volume weighed average price thus derived are :
With these volume weighed average prices, almost all the rest of Top Twenty Shareholders except 2 smaller one have holding cost close to A$0.026 per share or way above.
My opinion is that very few shareholders have holding cost below the buy out offer of A$0.026 per share and therefore has no incentive to accept it unless they are out to help Ansteel getting the valuable assets for free.
In view of this,it is paramount important to reach out to all non Ansteel shareholders with the fact compiled in your paper and hopefully persuade them to reject the buy out offer unless Ansteel up the offer close to the asset value of about A$0.32 per share.
I suggest forwarding the paper to the Foreign Investment Review Board (FIRB), thus bringing to their attention of this lopsided buyout scheme.
Just my opinion, DYOR
GBG Price at posting:
2.6¢ Sentiment: Hold Disclosure: Held
