Forum Archive Index - November 2000

[frank fernandez <frank.fernandez@xtra.co.nz>]

Sarah,
I totally agree with your sentiments on SEU. I don't know whether you
are aware that the directors are now required to seek an independent
appraisal report on the fairness of the price being offered to
shareholders.  
George Gould, Richard Elworthy, Tim Saunders who have interests in the
offer being made by Pyne Gould, in being directors of Pyne Gould, will
not take part in any decisions of the board relating to that appointment
or in respect of the offer.  
The remaining directors Norman Geary, Paul Baines and Scott Rutherford
will act as a committee to consider all matters relating to the proposed
offer and that committee will be appointing an independent appraiser to
report on the fairness of the offer price.  Shareholders have also been
advised that the NTA of SEU will be approximately $1.09 per share at the
time of the closing of the offer - 16/1/01 or later. (The NTA at 30 June
2000 was actually $1.08)
By only offering $1.07 (and using $1.09 per share as a fair price for
any takeover in January 2001), Pyne Gould would effectively be
attempting to buy the remaining 29,864,194 (49.72%) shares that it does
not own for $600,000 less.  
It will be interesting indeed to see what shareholders think of the
whole shenanigans especially after patiently waiting since March last
year for the SEU directors to do something with their $67.5 million
cash. 
It is interesting too that SEU directors had identified three
"possibilities" in September and were due to make an announcement in
mid-October in this regard. 
Like you Sarah, I will be keeping an eagle eye out and putting the
sniffer dogs to work.

Kind regards,
Frank F

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