Ann: Takeover Bid Implementation Agreement with H, page-4

re: Ann: CUY: Takeover Bid Implementation Agr... TFG,

It amuses me that even before there had been any formal discussion between HAV and CUY, that the exact terms of the take-over (which initially had been described as a "merger") had already been all but settled.
The offer was to be one HAV share for every five CUY shares and one HAV share for every thirty CUY options.
Suddenly four days later the offer by HAV for CUY options has improved by 100 per cent to one HAV for every fifteen CUY options.
Prior to the take-over offer, CUY options had been selling at a price of 0.5 cent and yet the value of these options has been assessed at 4.6 cents for take-over purposes, a premium of 920 per cent.
Similarly, CUY shares had been trading at 7 cents prior to the take-over offer.
One tiny parcel, just prior to the advice of a possible bid, suspiciously pushed up CUY's price by one whole cent to 8 cents.
In effect, HAV is graciously paying a premium of just under 100 per cent for CUY shares.
I have some sympathy for CUY shareholders as I did for GHT shareholders, but GHT shareholders can now truly feel badly done by as they were rewarded with a premium of only 40 per cent above their pre-offer share price.
In this instance Havilah directors have been wildly benevolent, so much so that poor old HAV shareholders will now see their equity in their company diluted by almost one third since late last year.
No benefit has accrued or is ever likely to accrue to Havilah shareholders from any of these recent happenings.
Havilah shareholders have now funded two face-saving bail-outs of miserably failed enterprises and have been forced to supply a myriad of shares to Glencore resulting from an earlier gross failure of managerial oversight.
The most puzzling aspect of this take-over lies in its extraordinary timing.
At the very time when Standard and Chartered Bank is immersed in negotiations for the expedient sale of Havilah's major asset, Kalkaroo, worth perhaps $5 per share, lo and behold, a huge number of new equity partners emerge just at the right time to participate in the expected capital return.
The Kalkaroo sale had been initiated, primarily, for the express purpose of assuaging the groundswell of frustration, disappointment and loss of faith in Havilah's board by rewarding long suffering shareholders for their patience and loyalty over many years.
This latest and pointless dilution does nothing but further alienate Havilah's directors from those they were elected to represent.
It remains that of the three listed companies involving Havilah directors, two have failed spectacularly and control over the remaining one now looks assured of being in fresh hands within months.