Frank, Ansteel has to get FIRB approval regardless of ownership increase or not, and approval from China. Previously this occured post raising, and Ansteel's component of the raisings where always contingent on this fact with instos taking up the remainder if declined.
But maybe this time Ansteel is taking up the entire raising and seeking FIRB approval before any action? If so Ansteel would own more than 50% of GBG if a raising were to occur at current prices..... Not sure if thats a good thing, unless of course we get a significant premium which would result in less than 50% ownership anyway (wishful unrealistic thinking).
The delay in the raising would most likely be due to the bookbuild in my opinion. Might be having trouble getting someone to underwrite the proposed rights issue.
What would be interesting is if the FIRB gave Ansteel the right to acquire 100% of GBG. However our shareprice is slow low it doesn't look attractive to us suffering long term holders.
GBG Price at posting:
73.0¢ Sentiment: Hold Disclosure: Held
