having re-read the announcement I have formed a strong opinion that the next announcement, due by the end of this week, will be that the SIA will be terminated.
Here is my interpretation of what was announced yesterday:
'The Company remains in discussion with Hanlong as to the likelihood of completion of that requirement...' - means Hanlong haven't delivered CDB approval in 12 months and SDL doubt that CDB will sign off on Hanlong taking this forward. CDB may have even said as much to SDL.
'These options may include termination of the SIA.' - means this is where we are at right now and is the most likely outcome.
'However, the Company has had productive and encouraging negotiations with Hanlong'. - is for the ASX only, to try and demonstrate that the outcome is uncertain and therefore justify remaining in suspension.
'These negotiations are ongoing, but expected to conclude in the week ending 12 Oct 2012' - means we are negotiating the break fee clauses of the SIA.
SDL Price at posting:
34.0¢ Sentiment: None Disclosure: Not Held
