Ann: Completion of Due Diligence and Notice of Me, page-127

re: Ann: Completion of Due Diligence and Noti... Nannook if you're going to try and discredit me by leveling claims of half-truths at least get your own story straight.
You've just said to me;

"No I never said that Bayan are the recipients of the shares. I said that the total consideration for the transaction is 2.3 billion shares and always has been. You were making it out that it was another 11% of the company added on.

Where as the post of yours I replied to had you saying;

"Just TRY to understand this is is NOT another 11%. It is part of the original number of shares that Bayan were getting."

Either your command of the English language needs some work or you're pulling an almighty back pedal. I think I'm getting a clearer picture of this each time you post.

It hasn't escaped my attaention that whilst I approach this whole deal with the suspicion of someone whose money is being spent in ways they're not being told, your approach is to defend the deal with the sort of vehemence that comes from a man trying to justify something to himself. You're not one of the sheep saying 'oh well that's just the way things are done in Indonesia' you're really trying to make it sound like this is fair. To praraphrase Shakespeare... "I think the man protesteth too much". How about you answer drarthur's question. Do you know who Jedi Resources is ?

Funnily enough I don't feel the leat bit embaraassed about the questions I'm asking. You seem quite upset to have somone putting this deal under the microscope. I for one don't see very much light on this and I do see plenty of shadows. If having someone raise them in a public forum upsets you then I really do start to wonder what's behind your fears.

If you feel that any assertions I make are inaccurate then you have this forum to set me straight. I welcome any comments you have regarding the issues I'm raising. That is the purpose of my posting questions about things I don't think are being properly explained to shareholders but do try to come up with something more than just your usual efforts to discredit me with claims of half truths or lack of research. In sales words those lines are getting "stale".

I spent a fair bit of time staring at the ceiling last night and considering this deal and here is what I came up with. This scenario might be completely wrong but given the lack of transparency from the company it is my best guess at the reality behind the Bayan transaction especiially with your toing and froing on who the shares are meant to be going to.

- Bayan want about 2/3 of KRL for their part in the deal of supplying the Pakar project to KRL.

- A number of people have assisted in arranging this deal and expect to be handsomely rewarded for their trouble. Herein lies my biggest problem with the deal. I sense pigs at the trough.

- The deal is structured so that Bayan get 1.9 Billion shares (56%) up front but they want and expect to get 2.3Billion (67%) after everything gets settled so there's a side deal.

- An entity called Jedi Resources is set up for the "facilitators" to receive 380 Million shares. Unlike the Bayan shares these shares are NOT put into escrow you will note from the announcements.

- Sometime, I expect not very long after the deal, Jedi will agree to on-sell it's 380Million shares to Bayan giving them the number of shares they intended to get in return for Pakar. Obviously this couldn't be done if the Jedi shares were in escrow. I expect the price to be the same 12 cents they were issued at but there could be slight adjustment.

- The facilitators have made their windfall at the expense of other KRL shareholders. We're the more naive and despearate of the involved parties so the logical ones to foot the bill.

- Bayan have not had to pay any nonsense facilitator fees that would make the bigger company look foolish to their shareholders and market. They look like they've made an absolute coup in picking up the extra 11% in KRL at 12 cents instead of 14 or 15 cents (or hopefully post June even higher) so no questions will be asked of their management.

- It's also possible though this is merely a possibility that Bayan will pick up quite a few more as some other large holders use this opportunity to exit. We've never been told who the cornerstone investment group were that picked up 200million at 11.9 cents days before the Bayan deal was announced. Who is behind those nominee accounts is anyone's guess but I wouldn't rule out Bayan or Jedi. In addition we've made substantial scrip payments to Indonesian partners over the last 18 months and various broker reports say our Indonesian partners hold significant numbers of shares so if they chose to sell to Bayan then the total KRL holding from Bayan could exceed 70% by the time the dust settles from all of this.

Again all of this is speculation and the last point in particluar is just tossing it out there.

So how far am I off the mark ? I guess we'll have to wait ands see. It certainly neatly ties up all the different explanantions of the Jedi Resources issue though doesn't it.

I'm still not embarassed nannook. It strikes me that the person(s) who should be feeling embarassed about about any of this is whoever has their hand out for $46Million in shares for brokering the deal. Frankly it's an outrageous sum. I wouln't have objected to a few million for what probably amounted to a few months of on again off again negotiations but $46Million. Shame.












%)