What is Section 193 of the the Business Corporations Act (Yukon) (the "YBCA")?
Here is a paragraph referencing 193 from the government's Canada Business Corporations Act website:
https://laws-lois.justice.gc.ca/eng/acts/C-44/page-34.html#h-111183
And from the KAT PR from Apr 22, 2020, we are advised of Section 193's relevance in that:
"Dissenting Shareholders who strictly comply with the procedures set forth in the YBCA will be entitled to be paid the fair value of their Common Shares pursuant to Section 193 of the YBCA. The Dissenting Shareholders, pursuant to the YBCA, may apply to court for a determination of the fair value of their Common Shares."
So the question arises; are dissenting shareholders likely to be supported by Section 193?
To determine that, I looked for prior challenges under Section 193 and only found one: the Yukon case of Carlock v. ExxonMobil Canada Holdings ULC:
https://www.lawsonlundell.com/the-business-law-blog/yukon-court-awards-premium-in-fair-value
It shows that dissenting shareholders did indeed receive a “fair value” for their shares acquired by Exxon in court challenge and in which that court agreed, after the fact, with the dissenters’ expert setting of “fair value” of the shares at US$71.46, significantly higher than the US$49.98 per share paid by Exxon in the transaction.
But... note that case was recently overturned on appeal by the Yukon Court of Appeal in a decision finding that the negotiated transaction price was indeed the “fair value”:
https://www.canlii.org/en/yk/ykca/doc/2020/2020ykca4/2020ykca4.html?autocompleteStr=2020%20YKCA%204&autocompletePos=1
So no luck.
The above leads me to believe we are out of options. Glencore will in all likelihood prevail.
Lastly there was a question as to whether it is better to take the 15.5c (or 16c if you can get it) in the market now or sit tight.
Some joker even mentioned buying all you can get at 15.5c as 50c is coming... good luck there pal...
Given the above, I find it incerdibly unlikely that any higher offer is coming and given GIAG's massive majority interest (>99.5%), there will certainly be no White Knight.
Furthermore, we are in an unprecedented market right now with new investment opportunities coming up daily. Would you rather get your KAT money back to work or wait for the inevitable? a takeover by GIAG for a pitiful 16c?
These are my views only. Thanks for reading.