There is no way they will see this facility under Territory's influence. These facilities are known in the trade as Death Spirals and when OLY announced this last year within days punters were dumping the stock knowing that OLY was in serious trouble.
Make no mistake OLY was heading for serious problems and the sell down by Lockett has alleviated big problems at OLY and also a potential serious issue on the NMI front (just have look at its latest quarterly and IM).
This deal appears to have been done quickly (fire sale?) and no prizes for guessing who will be lining up for the placement as indicated in today's announcement.
At least this year' s AGM will not be a repeat of the absolute bloodbaths of the past two years including last year where the shareholders were so p*ssed off with the board they voted down the directors options and then for their audacity not to be so grateful for their board's efforts in halving their shareprice and heading the company towards possible insolvency, the shareholders were treated to one of the greatest director dummy spits of all time.
Make no mistake,notwithstanding the Kalimantan play, OLY was sailing into some very risky waters which Kiernan has helped steer it away from. The question is how much largesse is he going to show to the existing OLY shareholders when he gets the chain saw out on the inevitible restructure/merger/scheme of arrangement with MAL.
In my opinion, a good businessman would not leave too much meat on the bone for minorities. But OLY shareholders will be much better off under Kiernan than where they were heading under the previous mob.
OLY Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
