If a transaction is considered 'fair', it is also considered to be 'reasonable'. However, if an expert considers a transaction to be 'not fair', they will look at other factors beyond value to determine whether it is 'reasonable'. These factors may still make the transaction beneficial to shareholders.Theres a host of things which need to be considered before individuals state ‘what has to happen’
independents valuation report also needs to be considered; The figure to which that report is stamped at is important , as its the figure from which a transaction is considered to be fair...I believe the independents figure for AVZ is over 15c. That figure is considered fair; considered fair is also considered reasonable.
generally if it falls below the independents figure; it’s considered an unreasonable offer; but yes they can look at other factors beyond that figure in order to attempt to switch the ‘reasonable’ dial...these factors would be things that they could argue why the offer would be beneficial to shareholders; so yes indeed Kikker and offer could actually get through at these levels sub independents valuation.
Many investors here are deep in the red; so this could be an avenue a potential suitor could use....tbh I reckon there would be many 50c fanatics from last year now ready to give it up in the low teens.
The company needs to shore this avenue up pretty quickly IMO; they need to grab a quality name as chairman ASAP or some other considerable news with a name or risk losing it
AVZ Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
