Ann: TGM: Theta Gold Takeover Bid for Focus Minerals Limited, page-30

I think it's a smart deal. Shandong Gold may be keen to accept in order to get their hands on TGM's South African resources, given the current China-Australia tensions. From their perspective, it'd be much less risky to be pouring funds into a combined entity. Imagine if the FIRB forced SD to divest itself of Focus, at current prices they would make a huge loss. It's something they'll probably be considering. This deal gives them the opportunity to trade about a 25% interest in the Focus assets for 20-25% of TGM, which is similarly undervalued currently.

For other shareholders, it's also a win because SD doesn't gain a controlling interest, and there are more institutional stakeholders on TGM's register. Both projects will still need funding and the funds SD would have contributed to FML's placement will likely still go towards increasing their holding in the combined entity.