RE: RE: RE: RE: RE: RE: RE: Termination Payments At least in this case, shareholders will have the opportunity to vote on the transaction. These payments should be articulated in the transaction circular, which hopefully will result in shareholders putting pressure on the company.
I don't see how this transaction is helpful to Aberdeen shareholders, particularly with these termination payments. The company needs to fully utilize its normal course issuer bid instead of buying sporatically. It also needs to stop making more investments in speculative private exploration companies when it effectively can buy its current portfolio of companies at a 50% discount in the stock market.
What happened to the $11.5 million in cash they got from Premier on June 1st?? They only have $4 million in cash on hand as of July 31st. They could have done a substantial issuer bid and reduced the share count dramatically with that money.
Unfortuantely, the incentive of management is to increase the size of assets under AUM, not maximize return to shareholders. The board should be looking out for shareholders. I hope there is a large shareholder who will take on management in this case.