Q: This share holders vote for GXE is a mess. I am reading other bullboards where share holders can't seem to get the form to vote for or against the proposed partial sale of GXE to CVE. They have the chance to chose if they want to take shares or cash as if they deal has already been approved. Is two months, considering those two months included Christmas, considered a short, long, or normal length of time for a company to make an announcement of a major change and the actual vote on the proposal by share holders? This deal seems very rush and communication from gxe has been minimal.
5i Research Answer:
The timeframe fairly close to normal, perhaps marginally shorter. The Christmas timing seems suspicious but we do not think was intentionally planned to make things difficult. When a deal has been approved by both boards the wording in the circular is typically very positive. This part is not unusual. It was weird that the buyer was not disclosed in the original announcement. A spin off company is always tricky as shareholders really do not know how good the assets may or may not be. They are taking a bit of a leap of faith on management of the new entity. This has been a messy deal overall. The support agreement only has 8% of the shares so shareholders sitll have the ability to vote agains this.