Hi Kungpow,I have telephoned BRM and was advised that the...

Hi Kungpow,

I have telephoned BRM and was advised that the compulsory acquisition would be the same as the current (now expired) bid - $1.50 plus 18 WNI.

I also have a relative (a solicitor) who also holds BRM and we had a brief chat with a takeovers lawyer who told us that from what he understands, the compulsory acquisition by WNI follows a takeover bid so, under section 661 of the Corporations Act, it must be on the same terms as the previous bid.

The cash only option comes into play under S664 where a shareholder that holds 90% moves to acquire the rest without a previous takeover bid. In this case the 90% holder would have to pay the court costs of any objectors but not under S661.

Also, from what I understand (but this is not legal advice):
- Under S661 all remaining shareholders can each request a list of names and addresses of all other remaining holders and can make a court application for an order that the securities not be compulsorily acquired under subsection 661A(1).
- Each shareholder that wants to do this must apply separately but there will only be one court case and the result will apply to all shareholders who have applied to the court.
- If such an application is successful, I'm unsure what happens next (does somebody out there know?

So, all shareholders who want to challenge WNIs valuation would have to work together to find a barrister and a valuer who would have to prove the WNI valuation to be unfair and provide a fairer valuation. They would also have to pay their own costs - possibly around $30K all up.

In any case, I'm hanging on for the compulsory acquisition (for tax reasons) and will than find out if the above is correct.

I'm willing to take the $1.50 plus 18 WNI. I'll consider whether I'm interested in a court application if enough people are interested but I think that this will need to be led by somebody in WA where a court appeal will most likely be heard.