Hi CashmeI agree with your interpretation and it seems correct...

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05/03/19

23:37

Post #: 37664432
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Originally posted by Cashmeoutside: ↑

A takeover for MOD will be more attractive and of higher likely hood if a potential suitor can take out MTR and the consolidate the area to 100%. It becomes difficult otherwise IMO. I looked at the deal documentation released to market on the deal struck between MOD and MTR to consolidate T3 (shown below) - on which it says that MOD have the right to acquire MTRs 30% in Tshukudu Exploration in the event of a TO - and the consideration is to be the relative proportion of the Tshukudu Exploration to MOD EV determined by brokers. I've put the recent broker vals below (is $/share ie market cap rather than EV but difference is not material)… so

Given 15% of MOD 'EV' is Tshukudu Exploration as below.. and lets say a TO offer equivalent to A$210m (60cps fully diluted).. the acquirer would need to further pull out A$9.5m cash to pay to MTR (being $210m x 15% X 30% MTR share). Is this others interpretation??

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Hi Cashme
I agree with your interpretation and it seems correct and logical to me. It's interesting that the brokers' relative val for Tshukudu Exploration is to be used since the broker vals vary widely and this seems like a rather inexact science - I wonder if any guidelines exist for how to calculate the broker average (which brokers vals are to be included etc).

MOD Price at posting: 34.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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Hi CashmeI agree with your interpretation and it seems correct...

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