sinosteel takes shares in lieu of cash, page-53

Intersting, Sinosteel takes shares in lieu of cash at a price of $4 per share when the shareprice is currently trading in the low threes.

This does not make sense, First of all cash is more valuable at present than shares.
Second Sinosteel could have taken the money in cash and then ordered a broker to buy on market, they would have been able to fill their demand within 28 days at a lot lower price.

There is something not right here as no one in their right mind would pay more for something.

Had the company been given the shares at a discount then it would make commercial sense, but this smells fishy.

Like zzzddzzz alluded was the full amount quoted the rack price and the cash price would have been at a discount - that makes sense.

Or was the company assurred many additional contracts by CDU.

Posters being negative just because someone raises some valid questions need to look at the facts. And the first fact is that this deal does not pass the commercial common sense test for Sinosteel.