anglo/nkp deal possibility?, page-10

Hi Guys

Out of respect to my broker I will not be providing his details however I will confirm he is based in Brisbane as am I.

I am however happy to let you know what we have discussed.

Essentially he is of the impression that Anglo are trying to bully their way to a deal. His belief is that Anglo don't even want to proceed with legal action, however they are happy to use the threat of legal action to force Nkwe into an agreement.

Personally I am surprised most people on Hot Copper have not jumped to a similar conclusion.

Ralph got the below response directly from Anglo:

Anglo Platinum Limited (Platinum) with its partner ARM filed a formal appeal for review to the DMR and also initiated a legal process (PAJA) against the awarding of the 9 farms called the Modikwa deeps. The application is against the awarding of the 5 farms to Genora, 3 farms awarded to Bauba and 1 to the Sekhukhuni community.

This legal process was to ensure that APL can reserve shareholders value in respect of the rights over the farms, is in compliance with corporate governance and the MPDRA (PAJA). We wish to point out that in parallel with this judicial process, there have been continuous negotiations with the parties facilitated by the DMR aimed at finding a commercial solution on the five farms.

I am not sure about you guys but the last sentence pretty much says 'we are currently negotiating with Nkwe/Genorah to do a deal amicable for both parties regarding the land.' I think most people are concerned about the first 3 sentences of the reply, but for me (and my broker) the last sentence tells the story.

If Anglo thought they had a strong case why would they bother trying to negotiate?

Let me put it this way if someone stole your car and you found them the next day driving your car would you negotiate a deal with them. Probably not....I dare say you would call the cops and get your car back! The same applies for Anglo, if they believe they have a genuine chance of recovering the land why discuss anything with Nkwe/Genorah. Tell them to 'get stuffed, we will see you in court.' As investors I think we need to read between the lines and realise what is going on here is corporate chess. The same game that has been played for hundreds of years.

To be frank while I don't like what Anglo are doing, I certainly think from a commercial point of view they are being extremely smart. If you were a shareholder in Anglo you would commend the timing of their threat. Unfortunately we are Nkwe shareholders and for obvious reasons we don't share the same view.

At this point in time it is important to remember that whatever we have to lose as investors is far far less the PL and his 'BEE' mates. 50% of something is far better then 100% of nothing so with that in mind i can assure you they will be bending over backwards to do a deal with Anglo. Even if the deal isn't great it will at least mean they will continue to hold shares in a company with a quality asset worth far more then the current market cap signifies.

All roads currently point to a deal with Anglo and for me this would be a satisfactory outcome. It certainly may put a cap on the 'blue sky' we were hoping for as I am sure the terms of the agreement will not be as good as what Xstrata had on the table.

I am not trying to raise false hopes here, and have read and accepted all sides of the argument. One thing is for sure though all those that think the game is over needs to have another read of the last sentence of the response to Ralph: We wish to point out that in parallel with this judicial process, there have been continuous negotiations with the parties facilitated by the DMR aimed at finding a commercial solution on the five farms.

This has not come from myself or my broker. It has come straight from Anglo....seems to me they want to do a deal. At this point in time I would prefer to be with them as opposed to against them...I can only assume/hope PL and friends are thinking the same way.