20cents offer, will you sell ?, page-45

The 45 day standstill expires around 15 October 2012.

There are various conditions to be met. Does anyone know if these are all to be met by the strategic partner or are there also conditions to be met by Genorah?

Two conditions that come to mind (probably the biggest issues) are:
1. resolution of the dispute with Anglo and
2. funding for development (possibly being arranged from IDC)

Can anyone think of any others?

This entity must be very confident they can resolve these issues and we only have around a month to go. Are they likely to report as conditions are met or only when they are all met and the transaction takes effect?

One thing that bothers me is this entity has agreed to buy part of Genorah’s stake at 20c. It makes sense if they were confident of a resolution then they would be buying on market at current prices. If they think 20c is cheap then 8c is a bargain. I know MacLeod said they can’t buy significant volume at these prices, and that may be true, but they could still build up a sizeable stake over 4-6 weeks and that would reduce their average well below the 20c. The only reason I can think of for that is they’ve agreed to buy around 19.9% of NKP from Genorah, so that they can’t go above that without making an offer.

I still think this is being set up for a low-ball offer to be eventually taken over, de-listed from ASX and re-listed on JSE at a premium.