a distinct possibility

Hi All,

I think we each know by now, where different posters stand on the sale of 51% of FML to Shandong Gold Group. I have made my views clear at this point in time, however, I too look forward to seeing detailed information about how the funds will be used, the benefits and associated timeline of each of those benefits.

If you are sitting on the fence, consider this.

Where we are now?
If we go for the Shandong Deal, we end up with circa $225M in the bank from them, to invest and hopefully show a return (for all concerned, including us). We still own just less than half the company and thus, just less than half the profits (to be consistent with many peoples rule of thumb evaluation criteria on this forum).

What if this happened?
Hostile takeover of FML at 3.9c. You get paid 3.9c for every share and you have lost FML forever, unless you go along with the real big brother, whoever it is. Even if a takeover came now for 5c, that's all you get, and all you will ever get out of FML. Forget having the name FML in your portfolio, forget 10c, 15c, 50c or whatever. You get 5c, and that is it. There is no $225M in the bank to invest and roll the dice. That is gone. The opportunity is lost.

We have Shandong willing to front up $225M for half of FML, when in reality, someone could take FML out altogether for $215M at a 5c offer. I am not trying to convince you to vote yes for the Shandong offer, I am presenting what could be a realistic scenario if this does not come off. If you don't think Shandong have good intentions, then please explain to me why they are not just buying all of FML, for 5c, at a cost of $215M (i.e. $10M less than they are paying to own the whole package!!!!!!!!)

Do you want all of FML gone for $215M or half of FML left and have more than that in the bank? This surely must be a no brainer. Not one single person on the FML forum can guarantee to me, that if the Shandong deal fails, that an amicable or hostile takeover is not a possibility. We don't have a position of strong defence at the current share price. This worries the blazes out of me. I don't want to see it happen.

Unless something radical is presented, I will continue to be strongly in favour of this deal. I can see how so many people think they are losing in this deal, but please consider what i have presented above. What you lose now would pale in comparison to what you WOULD lose if the above prevailed and we lost FML altogether.