KDR (ASX) Ann: Proposal from Wesfarmers

Originally posted by cgdog: ↑

@DaisyA I have always thought it intuitively obvious SQM would end up with the lock stock and barrel......

core business ...... 100%
largest, highest quality hard rock deposit currently known
Are they going to really share with someone else???

KDR went into the best deal around and an opportunity for 50% earn in on refinery........remember..... that requires financing to secure their refinery stake ........ in the CASH COW

let’s remind ourselves.......whatever financing shortfall KDR find themselves....... SQM have greater % of the Cash Cow refinery

And ok now the project has further de risked and is bigger and better than anyone could of imagined......
can you see them SQM sharing this? And seriously why would you?

ok and the obvious...... even if they paid $3.00 per share or 1.2 B approx ........ they have 100% of Mt Holland for a total bargain to underpin the land bank of future prosperity for SQM to feed into the refinery, I reckon it is a strategic no brainer they have to have it. In fact I would go further to say it is acting in their shareholders best interests to own it 100%

They would have loved loved to see KDR stumble at the refinery stake, now KDR has Attracted a TO suitor.......GAME CHANGER....... change of game plan to keep everyone honest and extract shareholder value today......Through bringing on market competition for a stake in this asset of the future........

nothing like calling everyone’s bluff......

all IMHO only ..... just musings, big money, big strategy, super asset of the future

hold on on for the ride GLTARH. Again only sharing my thoughts and speculation

look forward to Crown Party.

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@cgdog I thought the same but WES has now got SQM to agree to similar restrictions as KDR and has obtained their support it seems. I can only assume that WES also had the same view that we have and needed to try and take them out of the game as well. Perhaps they have, then again? It is looking more and more likely to me that WES will feel the need to increase their offer (20% would be nice and hard to refuse) in order to convince shareholders. There are lots of mixed signals out there at the moment with BHP saying that they are not interested in lithium as there will be abundant supplies for the next decade, the chinese still at full throttle with lithium expansions at a all levels and Europe not far behind, RIO keeping silent and WES treating it as a chemical business not a mining one, which is probably smart and perhaps why SQM is content to have them on board at 50%. All I know is that we still have many more months to go here and the ground is shifting everyday. Holding is the correct strategy IMO.