Forum Archive Index - April 2004

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi terry,

>
> Hans ,   Hi
><<Personally I am happy to remain as a shareholder >>
> 
> But what bugs me is that those  49.9 % of shareholders that don't sell
> are going to subsidize Norgate's purchase of their company. What's in
> it for them?. Reduced payout because he will be using the cash to pay
> off His Debts once he has control of the company.
>  

As far as payouts are concerned, all shareholders are treated equally.   
If Norgate dictates that WRI makes a big payout to himself (in respect 
of his 50.1% holding) then all other shareholders will get the same 
payout in proportion to the number of shares they own.

Norgate's debts will be tied up in the RPI vehicle through which he is 
making the partial takeover offer.   The shareholders who accept the 
RPI preference shares will be at risk from Noragtes debts.   But 
shareholders that remain within WRI will have no such risk.

SNOOPY

.

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