The simple question is: “Is 34% of Pre Merger Orient Refractories Equity worth paying for the two RHI Entities?”
To determine this, we need two things:
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An estimate of the “Fair Value” of Pre Merger ORL (Forget Stock Price - your own estimate)
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An estimate of the “Fair Value” of the two RHI Entities
If 1 > 2, then you (If you’re an ORL Shareholder) are being diluted at a loss. Of course, you can also try to throw in some Value in 1 for ‘Synnergy Benefits’. Even after all that if 1 > 2, you may have to revisit your Valuation of ORL.
I’m not saying there is scheming involved or a CG issue. But it just means going back to the drawing board on how much you’re willing to pay to buy ORL. This might differ for each person and that much I agree.
My personal opinion happens to coincide with NCLT in saying that 1 is far greater than 2 and most likely this is to benefit RHI Magnestia more than other existing ORL Shareholders.