the Company has been short-listed as a preferred bidder in relation to a potential acquisition of one of the other logistic opportunities. Shareholders are advised that, as a preferred bidder, the Company has signed a non-binding non-exclusive term sheet, with a certain party (?the Seller?) in terms of which Labat will acquire the Seller?s business assets and operations (?the Sale Assets?) (?Proposed Transaction?). In terms of the Proposed Transaction, Labat will acquire the Sale Assets for a purchase consideration of R627.5 million (six hundred and twenty seven million and five hundred thousand Rand) to be settled in cash. LOOKING TO BE THE MOST ATTRACTIVE COMPANY TO INVEST IN FOR 2015 ENJOY THE RIDE UP
The only outstanding secret really is how a company with a negative nav is going to fund a R627m acquisition? Obviously shares will be issued as has already been indicated which in effect will be a reverse takeover. If we are generous and assume LAB shares will be valued at 15 cps for this purpose (they were trading at 10cps prior to this announcement), 4.183bn shares will be issued which coupled with the 404m currently in issue already values this asset at R2.75bn at the present market price of 60cps...this implies a 340% value uplift already priced in! I take it that you are familiar with this simple math? Now stop the spamming.
they have recieved funding for a buy over which could take this company to the next level. i am just spreading the love. all research suggest that there future contracts will make this company grow extremely fast during 2015. but but keep your eyes peeled and dont say i didnt tell you so. happy trading.