He takes a different approach to me, however we both seem to land on a similar value for existing assets. We also expect to be paid some reasonable sum for full control of the company and Ironbark etc.
Clearly, I am in full agreement with James with regards to the valuation model used by Northington falling short and undervaluing our business.
However, proving that they have actively attempted to mislead the market, so far as the high bar the Takeovers Panel use, is quite another thing. I discussed this with another large minority shareholder the other day.
If we remove ourselves from the current attempted theft of our business...we would hopefully agree that the high bar the TO panel use is a necessary evil. Otherwise, there would be zero takeovers because anyone could say the purchaser is misleading the market because they used an 'incorrect' valuation methodology. It would become chaos.
And I do believe shareholders do have some responsibility to understand the business they own, and form their own view of how much their business is worth. I mean, if they don't understand the underlying value of their business - why own it in the first place?
There will be a number of small parcel shareholders who have just bought into NZOG as a punt, and will have no real understanding of the business or how much it is worth. We would not be able to influence these speculators even if we tried.
Fortunately, there is a very solid base of large minority holders who also disagree with the valuation methodology and will be voting NO accordingly. If OGOG manage to get an incredibly high voter turnout, and managed to convince an enormous amount of unsuspecting shareholders to vote YES by phoning them and begging them...then maybe they could get this over the line. But I still think that the odds of OGOG succeeding are slim if not zilch.
All that matters now is the vote tally next Thursday.
Oh and I did find the response from Pagani that James included in his powerpoint very amusing. John Pagani has never been rude to me like that, however I have seen emails he has sent to others he does not like - very unprofessional!