A good reason for Dr. Al-Barwani, a UCL director and Chairman of MB Holdings, to buy MAK's stake in Sandpiper is that even he can see it is daft to be diluted out of Mehdiabad (although he would get a lot of it back by funding the cash element of the current takeover offer albeit with perhaps the unwanted acquisition of future funding liabilities on Wonarah - the funding liabilities on Mehdiabad and Sandpiper are onerous enough without acquiring extra ones on Wonarah?). Mawarid Mining, a subsidiary of MB Holdings, already has a big stake in Nautilus (another seabed mining company) so it makes a lot of sense to buy the other part of Sandpiper (although it casts doubt on the real reasons the directors of both MAK and UCL originally gave us for consolidating ownership under two owners instead of three) - the real reason was director job protection? Wonarah fully funded to BFS provides the MAK Board with secure employment.
http://www.mbholdingco.com/
Seals thanks. Hopefully both companies can rise on this battle being over and everyone getting back to developing mines!
AEV Price at posting:
13.5¢ Sentiment: None Disclosure: Not Held
