Ann: Cash Takeover Offer by Shandong Energy Group, page-5

re: Ann: Cash Takeover Offer by Shandong Ener... This offer just doesn't make any sense to me. They say it's conditional upon achieving a 51% take-up of the shares outstanding (quite a normal condition for a takeover mind you) but Benny Wu only wants to tip in a 19.9% stake into the offer (despite owning >50% of the shares outstanding) and he'll only do this if and when the offer becomes unconditional?

Considering the volume of shares he owns and Jindal's current stake of 28% then that doesn't leave enough acceptances for small shareholders to get this deal across the line on their own without both Jindal and Benny tipping in a substantial amount of shares.

Even Benny says that there is no word yet from Jindal and as far as I can tell if they say no to the offer then its dead...unless Benny decides to tip in a good deal more of his own shares. To do so would leave him with an even smaller holding than Jindal, which doesn't sound like him at all.

This is beginning to read like another one of Benny's smoke and mirrors games in which Benny is trying to smoke out Jindal and see if they'll sell...for the right price.

If Jindal bites then this offer could be done in a heartbeat but if they decide they're in this for the long haul and want to sit and hold these coal assets then this current offer really is dead in the water.