Lyamec announces Poison Pill
LOOK beyond the (great) Grifco offer price in the PR from Lyamec. The Lyamec PR is about Lyamec’s big cash demands and Lyamec’s control of the Libyan venture.
“Lyamec states acquisition initiatives on the ... Libya facility entails an additional premium of USD $28 Million to be paid directly to Lyamec.” [grandiose description of the facility omitted]
The new owners of Grifco must pay Lyamec an additional $28 million if they want to be part of the Libyan venture.
“In a statement by Interim CEO RG Raymond, "Clearly, it would be an unwise decision on anyone's part to perceive that any offering to acquire a majority stake of Grifco at this stage will lead to leveraging their position on the Libya facility without our approval, regardless of Grifco's current assets and or commercialized tools and products.”
In this statement Lyamec warns it must approve any purchaser's plans for the Libyan facility no matter what. That's in addition to the $28 million payment!
As I read it, Libya just got more expensive for a potential Grifco acquirer (more for Lyamec, less for everyone else). A potential $2.25 offer is great news and I’d be happy if it gets signed. Is Lyamec trying to torpedo the potential deal with this poison pill?
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