April 20, 2011

Shareholder votes, a bridge too far

As noted at the Cellestis Shareholders Action Group (of which I am a member) the numbers are 32,853,318 or 34.2% who will vote "No".

I should say were as there are still more people registering!

As noted in the Fairfax article by Malcolm Maiden
...if the opposition holds, the 75 per cent ''yes'' vote that scheme of arrangement takeovers need is a bridge too far..
This gap can be illustrated thus;





















In the unlikely event that 100% of all available shares are voted on the "Yes" vote still falls short of the required 75% by a margin of 9.2%.  As the rate of participation by shareholding decreases so does the "Yes" vote, relative to the "No" - at 90% participation the margin increases to over 11.5%.

At 65% participation the "No" vote represents +50% of all votes!