two choices

Nexus Management has two choices. Proceed with the merger or under the ‘Material Adverse Change’ clause withdraw. It does not have the option per se to “revise”.

IMHO, I cannot see any option apart from NXS proceeding with the merger. For the following "simply" reasons (in order of why):

(a) AZA still holds an investment in NXS (it does not want that “back on the market”);
(b) It needs access to AZA’s cash flow; and
(c) Given the NXS Management time and more importantly $ gone into the process (even though it is a “sunk” cost) it has a potential "loss of face" issue.

The NXS letter re: Basker-6 saying it was considering its options is just a classic (what I call) “stalking horse” tactic IMHO. It obviously has good advisers and knows how to play the game well. It is hoping, that given the AZA current share price, shareholders that did not think the merger was a good idea before will feel “compelled” to accept the merger.


Anzon shareholders have two choices should the merger proceed to vote stage. Vote for the merger or vote against it.

Given the current AZA share price, it would appear a no brainer, IMHO.

Should NXS not proceed to merger, there are probably a number of companies that went through the data room that will still want to get their hands on both the BMG asset (regardless of the results of Basker-6) and substantial NXS shareholding. IMHO, this creates a floor for the share price (that in theory should be trading substantially above where it is now).

I bought into AZA shares this week, at the ridiculously cheap price of $1.195 per share, based on the above. I see it as a cheap entry into NXS shares in the short term. The downside risk, should the merger collapse, is very limited IMHO.

Cheers