It is a speculative article quoting an industry insider source. The journalist says the insider has a good track record of tip-off's.
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From the article:
Communications director Alex Mercer told NBR, “We have nothing to comment on at the moment. As appropriate, we’ll update shareholders of any material developments.”
That sounds a lot like a non-denial to me.
I'd be guessing a cash injection rather than a sale or a rights issue. Two rights issues in less than two years would be too embarrassing and negligent. And a sale at 10% of IPO would be surely too low for McCrae.
Could be tempting to buy if there is a success here but seems way too risky in the absence of any real information at this stage.
Trade sale now what could that be, selling the U S operations, or what Aussie, N Z , buildings , whats left ?
It's the software IP and on-going licensing etc that others will be after in a trade sale. Assuming it's a competitor you can expect them to rationalise the development team by migrating the work to their own coders, and probably most\all of upper management. Support and professional services staff will be mostly safe for a while as they get absorbed into a larger team.
A link to an earlier post of mine on how this sort of thing happened with one of Orions main competitors:
https://www.sharetrader.co.nz/showth...l=1#post646539
Crackity made a very good point in the NBR coverage of OHE - if there is any substance to the trade sale negotiations, OHE should be on trading halt.
The fact that it is not, suggest the story could be planted to get the share price up to do a capital raising?
looks like a CR to me with today's ann... usually a couple good news or pump up a bit before CR...
Cannot see any institutions or underwriters stepping up to the plate at that kind of a pricing - will have to be heavily discounted to get a CR away.
Big issue for the underwriters will McCrae wanting to retain control of his 'baby' - never mind the fact that under his leadership, the company has destroyed over $800 millions of shareholders' wealth since the IPO.