PEB - Pacific Edge Ltd

[Balance]

Good summary in ODT this morning .

http://www.odt.co.nz/news/business/2...-100m-forecast

[Dentie]

Given my "learner" status, I have a question please for those with better knowledge...

It appears from David's comments that a buyout from some big company could well be considered by the board in the future. He added it would be considered in what is best for the shareholders. For me, I would like to see the SP get to say, $3 or $4 before I released my holding and am quite patient for that to occur (even adding to my position along the way). How would a buyout affect my aspirations please? What are the different options and/or scenarios? Do I get any say or do they just swallow my shares when they buy us out?

Many thanks in advance.

[JohnnyTheHorse]

Sounds like a buyout really is on the cards then if he was talking about it. And look at the last sentence in the ODT:

After the meeting, he said one unidentified pharmaceutical company had approached the board and, had it not been for the global financial crisis, might have gone on to consider a buyout offer, Mr Darling said.

[JohnnyTheHorse]

Given my "learner" status, I have a question please for those with better knowledge...

It appears from David's comments that a buyout from some big company could well be considered by the board in the future. He added it would be considered in what is best for the shareholders. For me, I would like to see the SP get to say, $3 or $4 before I released my holding and am quite patient for that to occur (even adding to my position along the way). How would a buyout affect my aspirations please? What are the different options and/or scenarios? Do I get any say or do they just swallow my shares when they buy us out?

Many thanks in advance.

You can decline the offer if you want to and your shares will be safe. If the company buying out gets over 90% acceptance however, you are then forced to sell your shares to them at the dictated price.

[Iolite]

It might just be the wording that is confusing me but I'm not sure you've quite got this bit correct. For the most part DHBs don't pay GPs in NZ. GPs get their money from PHOs and in part from co-payments from their patients. Therefore in that sense the rationale that DHBs would have the power of money over the GPs to force them to get their patients to take the CxBladder test before referring to secondary care would appear ill founded.

According to this Ministry of Health Website PHOs are funded by the DHBs, so probably the DHBs can dictate (or at least strongly influence) what tests should be used through the PHOs.

In addition, and this is a little bit speculative on my part (I'm basing it on conversations I have had in the past with a GP friend), if a GP wanted to refer a patient to a urologist, either in the private system or through the public hospitals, the urologist or hospital consultant could refuse to take the patient if they thought there was insufficient evidence of a problem requiring specialist private care or admittance to hospital, eg, bladder cancer. It is likely that they could insist that a GP have a particular test performed before they would take over the patient's care.

Also, GPs usually follow guidelines issued by BPAC which "has held contracts for nationwide programmes with PHARMAC, DHB Shared Services (formerly DHBNZ), Ministry of Health, individual DHBs and PHOs and other healthcare organisations" (from the BPAC website). So if a DHB or the MOH contract BPAC to create and issue guidelines to the GPs, then the GPs are likely to follow the guidelines.

So... taking these points into consideration, I think if a particular DHB decides the CxBladder test is the way to go, then they can put considerable pressure on all GP practices within their region to use it.

[Dentie]

You can decline the offer if you want to and your shares will be safe. If the company buying out gets over 90% acceptance however, you are then forced to sell your shares to them at the dictated price.

Thank you very much Johnny, that gives me some room for hope. I would hate to see the potential for PEB get sold out from under us before their potential starts to get realised. Doesn't seem right that us current shareholders support the company through their development and early growth phase - only to be deprived of some real capital growth in the SP by someone with bigger pockets that wasn't prepared to be there in the "hard knuckle" times.

[JohnnyTheHorse]

Thank you very much Johnny, that gives me some room for hope. I would hate to see the potential for PEB get sold out from under us before their potential starts to get realised. Doesn't seem right that us current shareholders support the company through their development and early growth phase - only to be deprived of some real capital growth in the SP by someone with bigger pockets that wasn't prepared to be there in the "hard knuckle" times.

Very true. Any takeover bid made now would need to be well over $1 if they wanted any chance of getting 90% I suspect. Takeovers in this sector do make a lot of sense in terms of labs and having sales people selling multiple products however.

[CJ]

You can decline the offer if you want to and your shares will be safe. If the company buying out gets over 90% acceptance however, you are then forced to sell your shares to them at the dictated price.

If they get over 90% and force you to sell, you can request a independent valuation if you dont think the price offered is fair.

There is no way on God's green earth that a takeover offer at $1 would be accepted by 90% of shareholders given the enormous value of the intellectual property in the pipeline. They would be lucky to get 20% of shareholders to agree at that price.

Unlikely an offer would be more than 2 the current price so it could be a stale-mate as far as a takeover goes.

[Minerbarejet]

There is no way on God's green earth that a takeover offer at $1 would be accepted by 90% of shareholders given the enormous value of the intellectual property in the pipeline. They would be lucky to get 20% of shareholders to agree at that price.

This is our collective greatest fear - is there any way to make it compulsory for PEB shareholders to belong to the Sharetrader Forum

[JohnnyTheHorse]

There is no way on God's green earth that a takeover offer at $1 would be accepted by 90% of shareholders given the enormous value of the intellectual property in the pipeline. They would be lucky to get 20% of shareholders to agree at that price.

100% agree. Hence why I said well over